§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the forecast growth in the market for United Kingdom exports of manufactures divided between the EC and the rest of the world together with his forecast of the growth of United Kingdom exports of manufactures in each case.
§ Mr. NelsonThe Treasury does not publish forecasts dividing the growth of the United Kingdom's export markets for manufactures or its growth of exports of manufactures between the EC and the rest of the world.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is his estimate of the effect on the volume of imports and exports of manufactures of an increase of 10 per cent. in relative export unit values for manufactures; what was the change in the nominal exchange rate against the ecu and the change in the price of manufactures exported to the EEC between February 1993 and January 1994; and what contribution that made to the change in the profitability of manufacturing compared to the average for 1989–90.
§ Mr. NelsonEstimates of the effect of relative prices changes on manufacturing volumes can be made using the Treasury model. This is available in the House of Commons Library. It is standard practice not to provide the results of simulations in reply to parliamentary questions due to excessive cost involved and the difficulty in making the appropriate assumptions without knowing the context in which the figures will be used.
Figures for the ecu exchange rate and manufacturing export prices are available on the CSO database, which can be accessed through the House of Commons Library. Manufacturing profitability depends on both manufacturing prices and manufacturers' costs. Company profitability has been strong recently. This reflects tight control over unit costs, rising output and the expansion of margins, particularly for exports.