§ Mr. Gouldasked the Chancellor of the Exchequer (1) what is his estimate of the price competitiveness of United Kingdom manufactures in the fourth quarter of 1976 by comparison with the first and third quarters;
(2) what measures he proposes to offset the effect on export competitiveness caused by the 8 per cent. increase in the dollar price of British manufactures since June 1976.
§ Mr. Denzil DaviesIt is not possible to make a reliable estimate of export price competitiveness in recent months until data on competitors' prices are complete. Given the movements in the exchange rate, however, it is probable that between the first and fourth quarters of 1976 export price competitiveness improved substantially. Over this period there was also a substantial improvement in the relative profitability of exports in108W relation to home sales. In general, no single indicator of competitiveness is suitable for use on its own. There may be short-run fluctuations in individual indices which do not reflect the trend in competitiveness.