HC Deb 15 November 1989 vol 160 cc317-20W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what was the increase in capacity utilisation in manufacturing industry between 1987 and 1988 as a result of the increase in demand; what is the increase in 1989; and if he will publish in theOfficial Report a table showing the increase in the volume of United Kingdom imports and output of consumer, investment and intermediate goods from 1985 to 1988 and from 1970 to 1973, together with the degree of capacity utilisation and the level of unemployment in 1973 and 1988.

Mr. Norman Lamont

The information requested on United Kingdom unemployment, imports and domestic production of consumer, investment and intermediate goods is available from the Monthly Digest of Statistics and CSO Monthly Review of External Trade Statistics, copies of which are in the House of Commons Library. Because of differences of coverage and definition, the United Kingdom production and import figures classified by end use are not sufficiently close for meaningful comparison between the two. There are no official estimates of capacity utilisation, but the CBI publishes various data on capacity in its quarterlyIndustrial Trends Survey, copies of which are also in the Library.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the percentage increase in(a) the nominal value of sterling against the deutschmark between July 1985 and February 1987 and (b) the increase in wages and salaries per unit of output in (i) manufacturing, (ii) the rest of the economy and (iii) the rate of inflation.

Mr. Norman Lamont

The figures can be readily derived from the information in the Central Statistical Office databank, accessible through the House of Commons Library.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment the Goverment have made of the contribution made to cost and price inflation by excessive wage claims in the industries making internationally-traded goods; and if he will publish in theOfficial Report a table showing for the year to last April the percentage increase in earnings, including overtime of (i) the median and quartile full-time male manual workers in footwear, textiles, clothing and mechanical engineering and (ii) the corresponding figures for non-manuals in retailing and financial and business services.

Mr. Norman Lamont

The Government's economic policy bears down on inflation through tight monetary policy. Excessive wage claims threaten job prospects.

The requested information on earnings available from the new earnings survey is published in tables 74 (for manuals) and 75 (for non-manuals) in parts C of the 1988 and 1989 reports, copies of which are available in the Library of the House.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what is his estimate of the share of United Kingdom exports of manufactured goods in 1979, 1985 and 1988 which were imported in substantially the same form and the share of the rest which was imported in the form of manufactured materials and components; and if he will publish in theOfficial Report a table showing for consumer, capital and intermediate goods the ratio of imports to output by volume and value in 1979, 1985, 1988 and in 1989 to date.

Mr. Norman Lamont

Information on which to base an estimate of the share of United Kingdom exports of manufactured goods which were imported in substantially the same form is not available. The share of United Kingdom exports which were imported in the form of manufactured materials and components is not readily available for manufactured goods and could be obtained only at disproportionate costs.

The definitions of consumer, capital and intermediate goods used for imports and output are not sufficiently close for ratios to be meaningful.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer if he will publish in theOfficial Report the percentage fall in the real value of the dollar against sterling and deutschmark since 1985 and the United States share of United Kingdom exports of finished manufactures in the same period.

Mr. Norman Lamont

There is no single definition of real exchange rates and bilateral real exchange rates are not published by the IMF or OECD. Series of bilateral nominal exchange rates and various price indices for the relevant countries are published by the IMF in "International Financial Statistics". Data on the destination of United Kingdom exports of finished manufactures are published by the CSO in "Overseas Trade Statistics".

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer to what factors he ascribes the increase in the deficit in trade in manufacturers in 1988 and 1989 to date; what was the percentage increase in gross domestic product and in manufacturing output in 1988; how these increases have been reflected in the increase since 1973, 1979 and 1985 in imports and output of shoes, textiles, clothing, mechanical machinery and metal goods; what was the 1988 increase in gross domestic product in manufacturing output and in investment in industry; and whether he will provide similar figures for 1983.

Mr. Norman Lamont

The increase in the trade deficit in manufactures in 1988 and 1989 is the result of strong growth in investment, and the fall in personal saving. All the data requested can be found on the CSO's computer databank, which is available in the House of Commons Library.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment he has made of the effect on imports and on exports to third countries, including the United States of a stable exchange rate between sterling and the deutschmark, and if he will publish in theOfficial Report a table showing the percentage of United Kingdom exports of manufactures which go to third countries and the ratio of imports of manufactures from and exports to the EMS countries together with the value figures in the current year to date at an annual rate.

Mr. Ryder

The effect on exports to and imports from third countries of stability in the sterling deutschmark rate would depend on how these currencies moved against those of third countries, as well as on developments in the United Kingdom and German economies.

Data on the origin and destination of exports and imports are published by the CSO in "Overseas Trade Statistics."

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what was the level of sterling against the deutschmark and the average for January-February 1987.

Mr. Ryder

I refer the hon. Member to table 13.1 of "Financial Statistics" published monthly by the Central Statistical Office, copies of which are in the House of Commons Library.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether the coverage of consumer, intermediate and capital goods in the output figures includes products which are classified on importation as semi-manufactures; what proportion of imports of semi-manufactures and of finished consumer, intermediate and capital goods were accounted for by final demand; and whether he will provide similar estimates based on the input-output matrix for 1985.

Mr. Norman Lamont

(a) The coverage of consumer, intermediate and capital goods in the output figures includes products which are classed on importation as semi-manufactures.

(b) No estimates exist which give the proportion of imports of semi-manufactures and of finished consumer, intermediate and capital goods accounted for by final demand, and to derive these estimates would involve disproportionate costs.

(c) To derive estimates from the 1985 input-output tables of the proportion of imports of semi-manufactures and of finished consumer, intermediate and capital goods accounted for by final demand would involve disproportionate costs, due to the lack of consistency between the industry classification of the input-output groups and the coverage of the semi-manufactures, finished consumer, intermediate and capital goods headings.