HC Deb 14 June 1995 vol 261 cc781-2
5. Mr. John Marshall

To ask the President of the Board of Trade what is his Department's latest estimate of the trend in exports in 1995. [26807]

Mr. Needham

The outlook for exports in 1995 is excellent. The Confederation of British Industry reports that export orders are growing faster than ever before and that optimism among exporters is at its highest for a generation.

Mr. Marshall

I thank my right hon. Friend for that encouraging answer. Does he agree that while past economic recoveries have been based on increased consumption leading to a balance of payments crisis, the present recovery is based on increased exports, which means that we can look forward to several years of sustained economic growth?

Mr. Needham

My hon. Friend is absolutely correct. At Question Time two years ago, the hon. Member for Livingston (Mr. Cook) constantly told the House that as we came out of recession into recovery our export position would get ever worse and the deficit would become ever greater. Perhaps that is why the Leader of the Opposition was sensible enough to move him to another shadow position. We are going through one of the greatest export booms of the century, which will bring untold benefits for the British people. Provided that the Conservative Government stay in office, there is no conceivable reason why that should not continue.

Mr. McAvoy

The Minister will be aware that Hoover Floorcare in my constituency is the only floor care manufacturer in Hoover Europe. He will also recognise Hoover Floorcare's record of exports to Europe. Bearing in mind the fact that the Italian company, Candy, has made a takeover bid for Hoover's European interests and that the bid, if successful, would represent a fresh and, I hope, new start for Hoover employees in the United Kingdom, will the Minister give an assurance that despite the remits of the Welsh and Scottish Offices in the takeover bid, his Department will encourage the bid to give fresh hope to Hoover employees?

Mr. Needham

I am interested in what the hon. Gentleman says, although he gave me no warning of his question. It is interesting that in this case he wants to see a takeover go ahead when his colleagues are so often against takeovers. The real question that he should address is whether the balance of British manufacturing is becoming more world competitive and improving the opportunities for Britain. In 1979, for example, machinery and transport equipment accounted for 34 per cent. of exports. Now it is 41 per cent. [HON. MEMBERS: "Here we go."] Here we go, indeed—it is a success story for British manufacturing and the Opposition should support the Government and industry on that.