HC Deb 09 June 1981 vol 6 cc62-3W
Mr. Teddy Taylor

asked the Secretary of State for Trade (1) if he will make a statement outlining the import deposits scheme introduced in Italy and the effect it is likely to have on British exports to that country;

  1. (2) if he has considered introducing an imports deposit scheme similar to that recently introduced in Italy; and if he will make a statement;
  2. (3) if Her Majesty's Government take the view that the Italian import deposit scheme is in accordance with the EEC treaty; and if he will make a statement;
  3. (4) if he is aware of any other EEC member which has an import deposit scheme similar to that imposed by the Italian Government;
  4. (5) how many letters or other communications he has received about the Italian import deposit scheme; and if he will make a statement summarising the nature of these representations.

Mr. Parkinson

[pursuant to his reply, 8 June 1981]The Italian Government introduced on 28 May 1981 a requirement that, until 30 September 1981, payments in foreign currency can only be made against a prior non-interest-bearing deposit with the Bank of Italy. This is to be of 30 per cent. of the value of the foreign currency required, and deposited for three months. Certain payments, including those for imports of oil are exempted. It is difficult to estimate the effect of the measure on British, or other countries', exports to Italy. It may, on average, increase their Italian market price by possibly 1–1½ per cent., or lead to some postponement of orders. If, however, it prevents a depreciation of the lira against sterling that might otherwise have occurred, there should be an offsetting beneficial effect on the volume of British exports.

Article 109 of the Treaty of Rome permits member States to take emergency measures where a sudden crisis in the balance of payments occurs".

The procedure for consideration by the Commission and the Council of the Community laid down in paragraph 3 of the article has been initiated. The British Government regret that Italy has considered it necessary to reintroduce a deposit scheme, and trusts that it will be withdrawn as soon as possible.

My Department has received some three dozen factual inquiries about the scheme, and a few representations on lines similar to my hon. Friend's questions.

Greece maintains certain requirements for import deposits and cash payments which are, in respect of imports from other Community countries, to be elimiated in stages by 1 January 1984 in accordance with article 38 of the Greek Act of Accession to the Community.

I have no plans to introduce a similar scheme in the United Kingdom. Our balance of payments remains strong. The United Kingdom balance of payments surplus in 1980, at about £2.7 billion, was roughly equal to Italy's deficit.