HC Deb 23 November 1994 vol 250 cc582-3
3. Mr. Batiste

To ask the President of the Board of Trade when he will next meet the Confederation of British Industry to discuss exports.

The Minister for Export Trade (Mr. Richard Needham)

With other DTI Ministers, I regularly meet the CBI to discuss a wide range of issues, including exports. Underlying export volumes have risen by 12 per cent. over the last year and now stand at record levels.

Mr. Batiste

Does my right hon. Friend agree that the unprecedented success of British companies in exports is due at least in some measure to the success of small British companies in re-exporting products to rather difficult markets—companies such as those in my Leeds constituency involved in re-exporting musical instruments? Will he consider ways in which his Department could help such companies to expand their presence at international trade fairs through joint ventures?

Mr. Needham

A recent survey showed tremendous confidence among Leeds business men in the export market, for which they deserve great credit.

As my hon. Friend knows, this is the only recovery since the war—and I mean the Boer war—in which the trade deficit has actually declined. British exports are now at the level that they reached in the mid-1980s, and the decline of the British percentage share worldwide has ceased. That is because of the tremendous success of the Government's policy, and the dynamism of the British manufacturing base.

Mr. Austin Mitchell

Do not the improvement in British exports since devaluation and the even greater improvements in exports outside Europe, where the devaluation has been greater, indicate the need for a competitive exchange rate to boost exports? Would not the best way of providing encouragement be to offer Eddie George on a free transfer to the Bundesbank instead of allowing him to yammer on about putting up interest rates—and therefore the pound—every time recovery stirs?

Mr. Needham

The hon. Gentleman asks enough questions over a month to know the answer to that himself. The fact is that Britain's share of world trade in manufacturing stopped declining in the mid-1980s, having-as the hon. Gentleman knows—declined consistently for most of the century. That cannot be purely to do with our leaving the exchange rate mechanism. The real factor is that Britain's exports are now more competitive and our productivity is increasing, as is our quality, mainly because the Government have managed to attract vast amounts of foreign investment into this country and to improve the competitiveness of British industry.

Mr. Garnier

My right hon. Friend mentioned the Boer war. Will he encourage the CBI and its members to export vigorously to the Republic of South Africa—a country that needs all the trade that it can get, but trade that will benefit British industry as well?

Mr. Needham

My right hon. Friends the Prime Minister and the President of the Board of Trade have already taken large missions to South Africa and I intend to add to those twice next year. I think that British business understands the importance of South Africa and the opportunities there, and that we shall take every opportunity to exploit those opportunities.