§ Mr. Gouldasked the Chancellor of the Exchequer what evidence he has that at the current rate of exchange exports are more profitable than production for the home market.
§ Mr. Robert SheldonThere is a substantial volume of direct reports from industry of high export profitability. The relative profitability of exports can be measured as the ratio of manufactured
EXPORT PRICES OF MANUFCTURES (dollar terms, 1970=100) 1973 1976 First quarter United Kingdom … … … … 126.8 176.6 Germany … … … … 147.0 187.0 Japan … … … … 147.0 167.0 France … … … … 143.0 N.A.
Ratios (Percentage) Difference (+ = improvement in United Kingdom competitiveness) 1973 1976 First quarter Germany/United Kingdom … … 115.9 105.9 -10.0 Japan/United Kingdom … … 111.2 94.6 -16.6 The table shows that in the first quarter of 1976 United Kingdom competitiveness with Japan and Germany had deteriorated since 1973. Since the first quarter, however, United Kingdom export prices have become much more competitive.