§ Mr. Hodgsonasked the Secretary of State for Industry (1) what evidence he has of foreign competitors of British engineering firms receiving subventions from their Governments in their exports to United Kingdom;
(2) whether steps taken by his Government to stimulate capital investment in the heavier industries have resulted in an increase in imports;
486Wassistance paid to readily identifiable member of the group since 1970. The amount of investment grant paid in 1970 and 1971 may be understated because some records have been destroyed in accordance with the usual practice. The amounts are as follows:
(3) what evidence he has of United Kingdom contracts being lost to foreign competitors by British firms as a result of Government's efforts to stimulate capital investment in United Kingdom industry.
§ Mr. CryerAny steps taken by the Government to stimulate investment will inevitably, to some degree, result in increased imports, though not necessarily an increase in import penetration—and in fact the import content of heavier goods 487W is lower than average. However, the Government are taking all the steps they can to encourage domestic manufacturers of capital equipment to meet the demand for such equipment. Export subsidies are banned under the General Agreement on Tariffs and Trade and, apart from cases under examination there, I have no evidence of subsidies for exports to the United Kingdom outside those areas where we have already taken countervailing action. If any evidence were to become available we would wish to look into it urgently.