§ 15. Sir Teddy TaylorTo ask the President of the Board of Trade what has been the total balance of trade with the European Union over the most recent five-year period for which figures are available; and what was the balance for manufactures only in the same period.
§ Mr. HeseltineIn the five years to 1992, the UK had a cumulative trade deficit with the rest of the European Union of 1.8 per cent. of GDP. The deficit in manufactures over the same period was 1.6 per cent. of GDP.
§ Sir Teddy TaylorThe figures show that our cumulative trade deficit with the European Community has now broken through £100,000 million, which is equivalent to £8,000 per British family. Is not there a case for an inquiry into why there is such a huge deficit compared with the profit that Britain used to have on its trade with Europe before it joined that ridiculous socialist organisation—especially as the Government recently changed the statistical basis for calculation, which makes matters look better?
§ Mr. HeseltineI would hope that, without such an inquiry being set up, my hon. Friend would know the answer. The explanation is simple—it is that we have not been sufficiently competitive in selling our goods in the European market in the way that Europe has been successful in selling its goods in Britain. Until the hard lessons of that fact bear upon the industrial, commercial and political world, we will continue to have a deficit.
There is another, important side to the argument. We attracted more than 40 per cent. of the stock of Japanese and almost 40 per cent. of the stock of United States inward investment into the European Community in 1992. That would be at risk if were to question our membership of the European Union.