HC Deb 01 November 1995 vol 265 cc288-90
6. Mr. Mark Robinson

To ask the President of the Board of Trade what steps his Department is taking to promote British exports overseas. [38654]

Mr. Lang

British exports have been breaking new records. This may be due in part to the recent White Paper which announced more support for companies attending trade fairs and missions abroad, more commercial staff at embassies and high commissions around the world, and improved local help through business links.

Mr. Robinson

Given the excellent performance of British companies overseas, does my right hon. Friend agree that they have every incentive to go out and win even more orders in the coming year?

Mr. Lang

I do indeed. My hon. Friend will be pleased to note that the volume of our exports has risen by no less than 91 per cent. since 1979. We are breaking records in a wide range of new markets around the world.

Mr. MacShane

While we welcome any increase in British exports, is not the real problem the fact that our trade balance continues to widen in favour of imports? What are the Government doing to address that problem, particularly in light of today's very disturbing news that we have slumped to 18th in terms of gross domestic product per capita? Britain is going downhill: we are importing more and not exporting enough.

Mr. Lang

The hon. Gentleman seems to have overlooked the fact that our recent trade figures show that the trade gap is relatively narrow, taking no account of invisibles. Our trade gap last year was the narrowest since 1986. The export component of that figure, excluding oils and erratics, was a record. Why does the hon. Gentleman not welcome that fact?

Mr. Nicholas Winterton

Does my right hon. Friend accept that the best way to assist and promote United Kingdom exports is by providing incentives to investment, improved training, low interest rates, continuing low inflation and the continuation of a Conservative Government?

Mr. Lang

I am happy to say that, as is almost always the case, I agree with my hon. Friend. The economic policies pursued by the Government have led to that very satisfactory outcome. It is only by continuing to pursue those policies, rather than espousing those of the Labour party, that we will be able to sustain it.

Mrs. Beckett

Surely the Secretary of State is aware that the Confederation of British Industry reports increased anxiety among exporters. Today's figures not only reveal a deficit—and a growing deficit—in our balance of trade, but include the forecast that that deficit is set to grow wider still. That shows our lack of competitiveness after 16 years of Conservative government. Does the Minister deny that the trade figures reveal our lack of competitiveness and the fact that Britain has slumped from 13th to 18th in the prosperity league behind France, Germany and Italy, when we had the oil?

Mr. Lang

I welcome the hon. Lady to her new responsibility for trade and industry matters. I regret that I disagree with almost everything she has said, including the accuracy of her figures—particularly in relation to France. The hon. Lady asked primarily about exports. I must point out, lest she has not noticed, that our exports are breaking records. We are exporting more now than at any other time in our history. She should recognise that achievement. If she takes account of invisibles, she will realise that the export:import balance and the balance of trade is very much more favourable than she allows. It is certainly vastly more favourable than it was under Labour Governments.

Mr. Batiste

Does my right hon. Friend agree that one way to assist British exporters is by bringing to an early and final end the Arab boycott of Israel? If he agrees, what action is he contemplating to bring that about?

Mr. Lang

Of course I agree with my hon. Friend that it is desirable to achieve peace and harmony in that area on a long-term basis. That would certainly lead to increased trade, and probably more exports for the United Kingdom. However, my hon. Friend will recognise that that is primarily a matter for my right hon. and learned Friend the Foreign Secretary.