Exports (Hansard, 11 January 1995)

§ 15. Sir Michael Neubert
To ask the President of the Board of Trade what is the level of exports by price and volume for the last 12 months; and what were the figures for the previous 12 months.

§ Mr. Needham
In the third quarter of 1994, underlying exports rose by 14 per cent. in volume and by 15 per cent. in value.

§ Sir Michael Neubert
Is not the present buoyancy of our overseas trade as good a piece of news as we have had for many a year, and is not the export-led recovery that we are now experiencing the best possible augury for sustained prosperity for this country for years ahead?

§ Mr. Needham
My hon. Friend is right. At a time when Opposition Members and many in the press were forecasting an increase in our deficit, that deficit is declining. Let me tell the hon. Member for Wentworth (Mr. Hardy), who asked a question earlier, that since 1981 the volume of United Kingdom-manufactured exports has grown faster than that of the exports of France, Germany or Japan; our world trade in manufactures has stabilised; last year we increased our share of the export markets, and we are likely to continue to do so this year. The deficit in manufactures is declining, and there could not possibly be better news for the country.

§ Mr. O'Hara
It is indeed many a year since we heard such good news. I notice that the Minister took 1981, not 1979, as his base date. Does he recognise, however, that an important reason for our improved export performance—particularly to our major markets in Europe—is the swifter recovery in consumer spending in Europe? What measures can he announce today to ensure that, when consumer spending eventually recovers in this country, domestic manufacturing capacity will be expanded to meet the ensuing demand for consumer goods?

§ Mr. Needham
The best way to expand domestic demand is on the back of an export-led boom. The hon. Gentleman always claims that I start from 1981, not 1979, so just to please him I shall start from 1979. Between 1977 and 1979, when the hon. Gentleman's party was in power, the surplus on manufacturing declined by 3 percentage points of GDP. Had the Opposition continued in power with that sort of record, we would now have a minus figure of 16 per cent.—and getting worse—instead of a figure of minus one, and getting better.