§ 55 and 56. Mr. Hastingsasked the Chancellor of the Exchequer (1) what calculation he has made of the percentage reduction in prices feasible for companies exporting capital goods with a high value added content;
(2) whether he has considered the effect of the withdrawal of the export rebate, of the Selective Employment Tax premiums and of devaluation, upon companies with a high proportional export turnover engaged in advanced engineering with a long research, development and production lead time; and what conclusion lie has reached.
§ Mr. DiamondThe effect of devaluation, after taking account of the withdrawal of export rebate and Selective Employment Tax premiums, will be immediately to help such firms to obtain profitable new export orders.
It is not possible to give a single figure of the feasible reduction in prices since this will vary between individual firms and individual products.
§ 61. Mr. John Leeasked the Chancellor of the Exchequer what is his estimate of the total cost of speculative operations in sterling during the last four days before devaluation; and how much of this cost is attributable to the activities of British nationals.
Mr. JenkinsI have nothing to add to the Answer which my right hon. Friend the Chief Secretary gave to a Question from the hon. Member for Norfolk, South (Mr. J. E. B. Hill) on 23rd November.—[Vol. 754, c.417.]