The Current Account Surplus for 1981 (Hansard, 9 June 1982)

§ Baroness Elliot of Harwood
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ The Secretary of State for Trade (Lord Cockfield)
My Lords, the latest estimate for 1981 is a surplus of £7 billion.

§ Baroness Elliot of Harwood
My Lords, may I congratulate the Government very much on those admirable results of their financial policy. 1 hope that they will continue at that rate for a long time to come.

§ Lord Cockfield
My Lords, I am most grateful to my noble friend for what she says. We and the country owe a great debt of gratitude to our exporters who have succeeded in putting up a very fine performance, despite the considerable difficulties that many of them face.

§ Lord Hatch of Lusby
My Lords, would the noble Lord agree that this is not simply a matter for congratulation? If there is a surplus of £7 billion in our overseas account, that means that there must be a deficit of £7 billion in other countries. Would he not agree that some countries are suffering because of our surplus, particularly those whose exports have been reduced because of protectionism in the industrialised world?

§ Lord Cockfield
My Lords, I do not agree with the noble Lord's economic analysis. The fact that we have a surplus of £7 billion means that we are investing this money abroad often for the benefit of the kind of economies the noble Lord has in mind, as well as using it for the benefit of our own economy. So far as the price of primary commodities is concerned, it is perfectly true that these tend to fall during a world recession, which is one of the reasons why we, and indeed all the industrial countries, would wish to see our way out of the recession as soon as possible.

§ Lord Roberthall
My Lords, would not the Minister agree that the balance of payments tends to be much better the more depressed the economy becomes, just as it tends to get much worse when the economy is over-stimulated? Would he not agree that, although this is a very splendid performance in a depressed world, it is to some extent the other side of a coin that is not so attractive?

§ Lord Cockfield
My Lords, I note the noble Lord's acceptance of the fact that over-stimulation of the economy—a matter with which he will be very familiar—leads to deleterious results.

§ Lord Ponsonby of Shulbrede
My Lords, I wonder whether the noble Lord, in giving his congratulations to exporters, would couple with them congratulations to those responsible for invisible exports such as tourism and insurance?

§ Lord Cockfield
My Lords, I should be only too glad to do so. In fact I myself led a deputation from the Committee on Invisible Exports to Portugal last year, and this was one of the major subjects I discussed with Ministers in Canada during my visit there last week.

§ Lord Leatherland
My Lords, would not the Minister also add his congratulations to the workers in those industries whose exports have led to this very desirable result?

§ Lord Cockfield
Yes, my Lords. I am most grateful to the noble Lord and I join with him in congratulating the workers in these industries, many of whom have also put up a magnificent productivity performance.

§ Lord Whaddon
My Lords, can the noble Lord inform the House what proportion of the surplus is due to manufacturing industry, as distinct from the oil account and invisible exports?

§ Lord Cockfield
My Lords, perhaps I may be permitted to write to the noble Lord to give him some further information on that point. In fact, exports of oil during the first quarter of this year amounted to £2.3 billion, which was not significantly different from the figure last year.