HC Deb 10 May 1995 vol 259 cc737-8
8. Mr. Tony Banks

To ask the President of the Board of Trade if he will list the top six countries exporting machine tools by value to the United Kingdom in the most recent complete year and in 1979. [21949]

Mr. Page

The top six countries exporting machine tools by value to the United Kingdom in 1997 were, in descending order, the Federal Republic of Germany, the United States of America, Switzerland, Italy, Japan and France. In 1994, the top six on the same basis were the USA, Japan, Germany, Switzerland, Italy and Belgium/Luxembourg.

Mr. Banks

I realise that the Minister is known for his foresight, but surely he does not know what the figures for 1997 will be. Nonetheless, it is a very interesting answer.

Is it not a fact that for many years we had a machine tools and transport machinery trade surplus, yet from 1983 we have had a deficit in all years except 1991? In 1994 there was a trade deficit of about £5 billion on machinery and transport. We do not export to many of the countries from which we import. Why do we have a balance of trade deficit with Japan? Why can we not export machine tools to Japan, which is our largest source of imports?

Mr. Page

I thank the hon. Gentleman for correcting my transposition of 1997 for 1979. I also congratulate him on giving me the opportunity to set the record straight. In 1979 there was a machine tools trade deficit of £50 million and, by contrast, in 1994 the industry ran a balance of trade surplus of £28 million. In 1993 and 1994 we saw the first balance of trade surpluses for two years. I thank the hon. Gentleman for giving me the opportunity to draw that success to the attention of the House.

Sir Donald Thompson

Is my hon. Friend aware that, in the real world of the west riding of Yorkshire, the machine tool industry is doing even better than it did last year, and will he join me in congratulating Denford Machine Tools in my constituency, which this very day is celebrating publicly the expansion of its business?

Mr. Page

My hon. Friend is absolutely right. The machine tool industry is showing significant improvement. In fact, on Sunday, subject to the business of the House, I hope to be allowed to fly to Milan to attend the EMO machine tool exhibition, which is one of the largest in the world and at which some 33 United Kingdom-based machine tool companies are exhibiting. I hope to do my bit to secure them some orders and bring more work and jobs to the United Kingdom.

Mr. Hardy

Would not that industry do even better if Britain had the same opportunity to export machine and hand tools to some of the countries on that list, and to two or three other significant exporters to Britain, that they have to export to us?

Mr. Page

The hon. Gentleman makes a valid point, but our machine tool industry has undergone a considerable revolution. We are starting to make computer-controlled machine tools that are suitable for export. Back in 1979, machine tools were manually operated and few were run by computer. That is the world in which we are operating.