HC Deb 04 May 1989 vol 152 cc200-1W
30. Mr. Cousins

To ask the Chancellor of the Exchequer what is his latest estimate for the balance of trade in manufacturing for the current year.

Mr. Major

I refer the hon. Member to the reply I gave to the hon. Member for Middlesbrough (Mr. Bell) on 19 April, at column168.

48. Mr. Lewis

To ask the Chancellor of the Exchequer what is his latest estimate for the balance of trade deficit in the current year.

94. Mr. Galloway

To ask the Chancellor of the Exchequer what is his latest estimate for the balance of trade deficit in the current year.

100. Mr. McWilliam

To ask the Chancellor of the Exchequer what is his latest estimate for the balance of trade deficit in 1989.

Mr. Major

I refer the hon. Members to the reply I gave to the hon. Member for Derbyshire, North-East (Mr. Barnes) on 19 April, at column168.

45. Mr. Knox

To ask the Chancellor of the Exchequer what effect current interest rates are having on the balance of trade.

Mr. Major

The current level of interest rates is designed to slow the growth of domestic demand. The effects of this tighter monetary policy are already apparent in, for example, recent figures for MO, retail sales and the housing market. In time, the current account deficit will also start to narrow.

43. Mr. Hunter

To ask the Chancellor of the Exchequer if he will make a further statement on the United Kingdom's current trade deficit.

Mr. Major

The present trade deficit has primarily reflected the strength of domestic demand, particularly investment. The Government responded appropriately by tightening monetary policy and the effects of this are already apparent—for example, in recent figures for MO, retail sales and the housing market. As the growth of domestic demand slows, so the monthly current account and trade deficits are expected to fall.