§ Mr. Gouldasked the Chancellor of the Exchequer (1) what is the effect reduction in the value of the £ sterling against competing currencies, after taking account 267W of inflation, compared with 1973, 1974 and 1975;
(2) whether he will obtain up-to-date information from overseas posts as to export prices of the United Kingdom's six principal competitors or some of them; whether he will assess these in the light of current rates of inflation; and whether he will publish in the Official Report a table showing the United Kingdom's estimated competitiveness in November at the current rate of exchange.
§ Mr. Robert SheldonThere is no uniquely satisfactory way of adjusting exchange rate movements for inflation so as to measure international competitive ness in terms of costs or prices. So far as export prices of manufactures are concerned, however, our competitive position in recent weeks has probably been some 3–4 per cent. stronger than on the average in 1975, though the improvement compared with 1973 and 1974 has probably been less than this. The relative profitability of exports has probably increased substantially during this period, and our competitive positionvis-à-vis manufactured imports may have strengthened by somewhere about 10 per cent. compared with 1974 and 1975.
§ Mr. Gouldasked the Chancellor of the Exchequer whether export prices for manufactures have risen so far in the current year by more or less than the percentage depreciation of the £ sterling over the same period; and how the increase in export prices for manufactures so far in the current year compares with the increase in wholesale prices for manufactures, and import prices for manufactures over the same period.
§ Mr. Robert SheldonThe information requested is as follows:
Percentage change, October 1976 on December 1975 Sterling export unit value index of manufactures +20.9 Effective depreciation of sterling -15.6 Wholesale prices of manufactures (excluding food) +13.8 Sterling import unit value index of manufactures +26.4