Trade Balance (Hansard, 16 May 1996)

§ 1. Mr. Dykes
To ask the Chancellor of the Exchequer if he will make a statement on developments in the United Kingdom balance of trade and payments. [28489]

§ The Economic Secretary to the Treasury (Mrs. Angela Knight)
In the past two years, United Kingdom export volumes have grown by more than 15 per cent. and current account deficits have been the smallest for eight years.

§ Mr. Dykes
The Treasury and the Department of Trade and Industry often receive much criticism on economic performance, but may I offer congratulations on the build-up of exports? They increased, I believe, by 7.5 per cent. last year and by 19 per cent. the previous year. We are now Europe's largest exporters of computers, microchips and television sets, and we export more per head than, for example, Japan and the United States. Does my hon. Friend agree that, if we successfully continue those strong policies, exports will be one of the most effective ways in which to create the jobs that we need for the future as well?

§ Mrs. Knight
My hon. Friend is right. We have not just a good export performance with visibles, but an outstanding one with invisibles. One of the reasons why our performance is so good is because of this country's competitive climate, which the Government are determined to maintain. We will ensure that we have low taxation for companies, low inflation, interest rates as low as possible and no social chapter, which would destroy jobs.

§ Mr. Shore
The Minister conveys good news about the growth in British exports, but she has not mentioned imports. Is she assuring us that this year's outturn will be 1056 that Britain has had, for the first time in eight years, a balance, if not a surplus, in its transactions with the rest of the world?

§ Mrs. Knight
As would be expected, we have had a small increase in imports as a consequence of the UK economy's growth, but we have also had an outstanding performance in other sectors. The right hon. Gentleman rightly points to the British trading performance with other countries. I assure him that, in 1994, the UK had current account surpluses with the United States, Japan, the Asian tiger economies and the Group of Seven countries. I am sure that he will agree that that is an outstanding performance.