Exporters (Hansard, 19 May 1993)

§ 2. Mr. Clifton-Brown
To ask the President of the Board of Trade what steps his Department has taken to increase the competitiveness of British exporters.

§ The Minister for Trade (Mr. Richard Needham)
The Government give a high priority to helping British exporters. United Kingdom companies are now in a better position than ever to win business overseas.

§ Mr. Clifton-Brown
Does my hon. Friend agree that the competitiveness of our exchange rate has helped to constrain inflation and that we need to keep bearing down on domestic costs to keep inflation under control? Those economic measures introduced by our Government are more effective than the, gloom and carping by the Opposition about the performance of our manufacturing industry and exports.

Hon. Members
Rubbish.

§ Mr. Needham
Despite Opposition Members' cries of "Rubbish" from a sedentary position, since 1981 the volume of British manufactured exports has grown faster than that of France, Germany, Italy, the United States or Japan. During the past three years, manufactured exports have risen by four times as much as imports, and since 1989 our exports of manufactures are up 16 per cent. Instead of doom, doom, gloom and gloom, which is all that we get from Opposition Members, that is the real history behind British manufacturing exports.

§ Mrs. Helen Jackson
In view of the enormous role that the steel industry plays in United Kingdom exports, is the Secretary of State aware of the serious potential threat posed to the British steel industry by the closure of Ucar Carbon, the only plant in Britain that manufactures graphite electrodes, which are part of the electric arc smelting process in special steel manufacture? It is the only United Kingdom plant, and it is scheduled for closure. What can the Secretary of State and his Ministers do, along with Opposition Members, to prevent that closure?

§ Mr. Needham
As the hon. Lady knows, that is a matter for my right hon. Friend. I believe that she is in discussion with him on that issue, and I am sure that he will work as hard as he can with her to ensure that whatever action 225 might be taken will be taken. However, with regard to trade generally, as the hon. Lady says, British Steel's performance is unrivalled, and it is unrivalled and competing in markets all over the world because it has been privatised.

§ Mr. Butcher
Does my hon. Friend agree that, when it comes to manufactured exports, what distinguishes manufacturers from the service sector is that manufacturing is more capital intensive? Does he further agree that there may be a danger that our progress in recovering from recession may be affected by a shortfall of capital in the small firms manufacturing sector? Will he, therefore, as the champion on this cause with the Treasury, urge the Chancellor of the Exchequer to consider, within the lifetime of this Parliament, the abolition of capital taxation, which will work wonders for inward investment and give us a clear competive edge within Europe and in the broader world market?

§ Mr. Needham
I shall pass on my hon. Friend's views to my right hon. Friend the Chancellor. As he knows, the Budget contained major measures, such as the loan guarantee scheme, for assisting small companies, and the Government are determined to do all they can to help small companies, not least in exports.

§ Mr. Robin Cook
As the Minister has been so free in lecturing the Opposition for talking doom and gloom, will he take the opportunity to rebuke the Chancellor of the Exchequer, who, in his Budget statement, forecast that the manufacturing deficit will double this year? Did he get it wrong, or is he also peddling doom and gloom? Will the Minister confirm that, in every year until 1982, we had a surplus in manufactured trade, and that in every year since 1982, we have had a deficit in manufactured trade? If, after 14 years, the hon. Gentleman really believes that the Government now have the right policies for industry, can he say in which year we shall return to the manufactured trade surplus that we used to have in every year until the Conservative party was elected?

§ Mr. Needham
The hon. Gentleman knows perfectly well that such forecasts from anybody are totally meaningless, and he would never make such a forecast himself. The figures I gave for manufacturing exports are true. They are not figures that he has ever used and he would never use them because, as far as he is concerned, they do not paint the true picture of British manufacturing —which is one of tremendous success. The Government do hare a policy on exports and manufacturing exports. We have a policy to do everything that we can, with manufacturers and business, to promote our exports. That is very different from the hon. Gentleman's policy, which is to join the social chapter and to push up costs and push up the incentives for people to leave this country.