§ Mr. Gouldasked the Chancellor of the Exchequer what forecast he makes of the growth in net exports in 1977, on the assumption that the present level of price competitiveness for United Kingdom exports is maintained but not improved.
§ Mr. Denzil DaviesI would ask my hon. Friend to await the forecasts of the economy that will be published before the end of this year.
§ Mr. Gouldasked the Chancellor of the Exchequer what effect on the prospect of export-led growth is produced by (a) an improvement in export price competitiveness and (b) a reduction in public expenditure.
§ Mr. Denzil DaviesEconomic expansion must be based on the growth of exports. Maintenance of improved export410W competitiveness and restraint on public expenditure are both essential factors in the Government's strategy. The quantitative effects of each factor will depend on economic circumstances.
§ Mr. Gouldasked the Chancellor of the Exchequer what information he has to show that export orders are growing more slowly than home orders; and what conclusions he draws from such information as to the competitiveness of British exports.
§ Mr. Denzil DaviesThe index of net new orders in the engineering industry—table 85 in the November issue of the Monthly Digest of Statistics—recorded a fall between July and August in export markets but a rise in home markets. But the much more reliable three-month moving average shows export orders growing by 24 per cent. by volume over the previous three months while home orders have remained fairly constant. Thus the state of export orders is fully consistent with the strong competitive position of British exports.