§ 6. Mr. Peter AinsworthTo ask the Chancellor of the Exchequer what growth rates the European Commission predicts for each EC country next year, in increasing order.
§ 9. Mrs. GillanTo ask the Chancellor of the Exchequer what growth rates the European Commission predicts for each EC country next year; and if he will list them in reverse order.
§ The Paymaster General (Sir John Cope)The European Commission has forecast that the United Kingdom will have the fastest growth of major European Community countries in 1994–95.
§ Mr. AinsworthIs my right hon. Friend aware that, during my formative years in the 1960s and 1970s, Britain lagged well behind France and Germany in economic growth? Does he not think that the fact that our growth now exceeds that of both those countries has a great deal to do with our competitive tax system, our competitive labour market and our constant war on red tape? Does he not also think that our European partners have much to learn from that example and that Opposition Members have a great deal to learn from their own mistakes?
§ Sir John CopeYes, all the factors that my hon. Friend has mentioned were important in that matter. The fact is that the 1980s was the first decade since the war in which the British economy grew faster than the economies of Germany and France. We are beating them again now.
§ Mrs. GillanDoes my right hon. Friend agree that, with that excellent news of Britain's prospects, it is hardly surprising that the Germans want to invest in Rover and in Britain? Does he further agree that the Opposition parties are completely irresponsible in their attitudes towards business and jobs in this country, as shown by the downbeat and distorted message about our economy that they send out to inward investors? Will he please put the Opposition right and say that we want inward investors in the United Kingdom? We have low corporation tax rates, a skilled and willing work force and the best prospects of any economy in the European Community.
§ Sir John CopeI entirely agree. We want investment —inward investment and all types of investment. In the latest quarter for which we have figures, manufacturing investment was up by 2 per cent.
§ Mr. HoonEvery other European Government believe that sustainable growth can occur only in the context of a system of managed exchange rates. Does the Minister agree?
§ Sir John CopeThe exchange rate is important, but I do not agree with the way in which the hon. Gentleman expressed the point.
Mr. John D. TaylorDoes the Minister agree that the favourable comparison of the United Kingdom with other European Community countries in terms of economic growth is almost solely due to the low interest rates that have applied in the United Kingdom, which became possible only following our departure from the exchange rate mechanism? Why, then, do the Government give the impression that they want to return to the ERM?
§ Sir John CopeInterest rates were falling before we left the exchange rate mechanism. I agree that interest rates are important. Certainly, our present low interest rates are important in sustaining growth.