§ 89. Sir G. Foxasked the Minister of Food the last date on which biscuits were exported to Australia and Canada, respectively, whether he is aware that Huntley and Palmer's biscuits are being re-exported back in the form of presents to this country; and if he will make a statement.
§ Dr. SummerskillAs biscuits are being exported continuously to many countries, including Australia and Canada, it is impossible to say when the last consignment was despatched. I can well believe that generous Australians and Canadians occasionally include British made biscuits in food parcels sent to this country. My right hon. Friend made a statement in July of last year about his export policy. He asks me to circulate a further statement in the OFFICIAL REPORT
Following is the statement:
As explained in my statement to the House on 14th July, 1947, the underlying purpose of our policy is to increase the amount of foreign currency at our disposal for the purchase of essential food 104W and raw materials by exporting controlled quantities of certain manufactured foods and drinks which have good conversion value and for which we have an established reputation and special skill. Since I made that statement the general situation has called for an intensification of our efforts, particularly in hard currency markets. Good progress has been made. During the first four months of 1948 we have been exporting at an annual rate of over £80 million, as compared with an annual rate for the last three months of 1947 of approximately £60 million. Of the 1948 programme, rather less than half will consist of whisky and of refined sugar produced from raw sugar specially imported for the purpose and distinct from supplies for home consumption. The rest of the programme is largely made up of chocolate and sugar confectionery, biscuits, beer, gin and soap.
While it is necessary in the country's long-term interests to maintain limited exports to traditional soft currency markets the imperative need to secure as much hard currency as possible for food exports is fully recognised in the export programme and endorsed by the food manufacturing industry. About 29 per cent. by value of all food and drink exported in 1947 went to hard currency countries and it is hoped that by the end of the year this figure will be raised to about 50 per cent.
It may seem paradoxical at first sight to export foodstuffs at all at a time of shortage. But in fact the quantities of raw materials which will be devoted this year to the manufacture of food for export will have no significance in relation to home consumption requirements. Over the whole range of exports less than 1 per cent. by volume of our total annual home consumption will be devoted to this purpose. On the other hand the resultant products will contribute about 5 per cent. by value to the total United Kingdom exports during 1948. By the export of relatively small quantities of highly processed and manufactured food and drink we are enabled to buy very substantially greater quantities of essential food imports and at the same time maintain and develop our overseas markets which should serve us in good stead in the future. In essence we are exporting, not food, but our processing skill, deriving a 105W net gain in terms of food from the exchange. Or to put the matter in another way, we are exporting luxuries to pay for necessities.