§ Mr. Monslowasked the President of the Board of Trade what, in present circumstances, is the Government's attitude towards imports of goods which cannot be described as essential.
§ Mr. H. WilsonThe main purpose of the present import policy is to protect the balance of payments by restricting imports to what we can afford to pay for, and within the total of our imports to secure the maximum quantity of essential foodstuffs and other goods which cannot be adequately supplied from home production. Within our overall unfavourable balance of payments, after allowing for the maximum possible diversion of exports to hard currency areas, there are, however, a number of countries with which we have favourable balances, even when we have obtained the maximum available supplies of essential goods, and from which extra purchases do not therefore cost us gold or dollars. From such countries it is clearly desirable to seek to obtain in the course of trade discussions a variety of goods which, though not strictly essential, are nevertheless useful. From other countries, with which our balance of payments is less favourable, the import of less essential goods must be more severely restricted, and can indeed only be permitted where exceptional considerations exist. Nevertheless, the object of our policy is to maintain366W international trade at the highest possible level and within this policy there is room for the exchange of available goods not strictly necessary to either party provided this is clearly advantageous to both.
In making arrangements for the import of less essential goods, the emphasis will be on goods—both foodstuffs and consumer goods—which form a useful addition to home supplies and satisfy a general consumption demand. Such imports will, of course, be an extremely small proportion of our total import programme and will not include, as far as we can arrange it, consumption goods of a purely luxury character. The token import scheme, which is itself part of our current arrangements for the import of less essential goods, will in future be applied in accordance with the policy outlined above. The scheme will not continue automatically in 1948 for all the countries to which it has applied hitherto, but will continue in operation only for those countries which offer us an adequate return within our general trade arrangements with them. As has frequently been stated in this House and elsewhere, it is not the purpose of import licensing to give additional protection to home industries. We do not propose to allow less essential imports in cases where United Kingdom production for the home market is at present prohibited or restricted so heavily as to make unfair even a very limited flow of imports.