HC Deb 20 July 1994 vol 247 cc313-4
16. Mr. Hendry

To ask the President of the Board of Trade what is the latest information he has on the level of exports of manufactured goods.

Mr. Needham

In the latest three months, manufactured export volumes were 8 per cent. higher than those of a year earlier, and were at an all-time record level.

Mr. Hendry

I thank my right hon. Friend for that answer. Does he agree that the fact that exports, manufacturing output, productivity, retail sales and business confidence are up, while we are keeping down the social costs on business, the rate of strikes, interest rates and the rate of inflation, gives us the best opportunity for increased growth, new jobs and rising living standards for everyone?

Mr. Needham

I agree with my hon. Friend, but the key needs are to ensure that that confidence is maintained and that business in this country realises how good the news is. It would be helpful if, from time to time, Opposition Members supported us in that aim.

Mr. Tony Banks

When did the United Kingdom last have a balance of payments surplus in manufactured goods?

Mr. Needham

We last had such a surplus at the end of the 1970s. [HoN. MEMBERS: "Oh!"] The fact is, however, that the proportion of manufactured goods as a percentage of the economy of this country is no lower than the proportion in France or in Italy. Our surplus on invisibles is growing. Our volume of manufactured trade and exports has stabilised since the mid-1980s; the decline that continued remorselessly when the Labour party was in power has stopped.

Mr. Patrick Thompson

Is my right hon. Friend aware that engineering employers in East Anglia have recently reported a considerable improvement in export performance? Is not that good news? As our exports to the European Union are rising faster than our exports to countries outside the Union, is not it vital that, as a Government and as a country, we continue to work at the heart of Europe?

Mr. Needham

Of course my hon. Friend is right. Furthermore, the manufacturing deficit continues to decline. The hon. Member for Livingston (Mr. Cook) used to be always on his feet saying that it was a danger and a disgrace that the deficit in manufactured goods was likely to increase, but now that it is falling he sits on his hands and looks at his feet.