HC Deb 21 July 1994 vol 247 cc430-3W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer if he will publish a table showing the percentage change for the United Kingdom and each EC country in imports and exports to the EC in terms of value in dollar terms together with(a) the average exchange rate against the dollar, (b) the increase in producer prices and (c) the increase in current or average value for September 1992 to the latest available date.

Mr. Nelson

The data on exchange rates and trade are given in the EUROSTAT publication "Eurostatistics, Data for Short-term Economic Analysis", published monthly. Producer prices are published by the Organisation for Economic Co-operation and Development in "Main Economic Indicators", also published monthly.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer, (1) pursuant to his answer of 4 July,Official Report, columns 13–14, what account he takes of overall living standards in deciding his objectives for exchange rate and competitiveness policies in relation to the total output and employment;

(2) pursuant to his answer of 4 July, Official Report, columns 13–14, through what mechanism a sustained growth in output and employment may be combined with the elimination of the balance of payments deficit other than through a fall in the exchange rate to a more competitive level;

(3) what assessment he has made of the contribution made by exchange rate changes to the change in export levels to other EC countries since February 1993;

(4) what evidence he has about the effect of excluding rates in the United Kingdom's levels of production, export, import, investment and employment;

(5) pursuant to his answer of 4 July, Official Report, column 14, concerning the exchange rate and competitiveness, what effect he expects output and employment of recessions in the EEC and other industrial countries to have on his policies; and what evidence he draws from other countries that his policies will have the effects intended;

(6) what evidence he has on the effect of falls in the nominal exchange rate which have not resulted in a Fall in the real exchange rate have raised the rate of inflation: and what is the mechanism by which a fall in the nominal rate unaccompanied by a fall in the real rate results in a higher rate of inflation;

(7) what is the Government's policy on the extent to which interest rates and the rate of exchange can fall in order to reduce import penetration of the United Kingdom market for consumer goods;

(8) pursuant to his answer of 4 July, Official Report, columns 13–14, whether he regards as inflationary for the purposes of monetary and exchange rate policy the increase in rail fares as shown in the retail prices index since (a) January 1987 and (b) August 1992; and how much of the increase in each case was due to a (i) reduction in Government subsidies and (ii) an increase in unit labour costs;

(9) in which periods since 1970 falls in the nominal exchange rate have been greater than that required to compensate for an increase in the general level of prices; and what evidence he has that such falls in the real exchange rate have been inflationary.

(10) pursuant to his answer of 4 July, Official Report, columns 13–14, what assessment he has made of the effect of consumer prices and on the balance of visible trade of the fall in and real value of (a) the Italian lira and (b) the pound sterling against the ecu and other currencies since August 1992; if he will publish a table showing for Italy and the United Kingdom (i) the fall since August 1992 in the nominal exchange rate against the ecu and other currencies, (ii) the increase in the latest period of 12 months in producer and in consumer prices, (iii) the increase since August 1992 in import and export unit values for total trade and for manufactures and (iv) the balance of visible trade each year from 1990 and the current year to date at an annual rate;

(11) what comparison he has made between the effects of exchange rates on inflation in Italy and the United Kingdom since September 1992;

(12) pursuant to his answer of 4 July, Official Report, column 14, concerning the exchange rate and competitiveness, what effect he expects his policies to have on the share of manufacturing in gross domestic product; and what this share was in 1964, 1973, 1979, 1989 and at the latest available date;

(13) pursuant to his answer of 4 July, Official Report, columns 13–14, what assessment he has made of the effect on the United States and United Kingdom economies of the fall in real interest rates and in the nominal exchange rate for the dollar since August 1992; and if he will publish a table showing for the United Kingdom and the United States of America the reduction in real interest rates and the nominal exchange since August 1992 and the increase since 1992 in (a) real GDP, (b) manufacturing output, (c) unit wage costs in manufacturing, (d) producer prices, (e) employment and (f) the percentage rate of unemployment;

(14) what is his estimate of the reduction in unit labour costs in the import-competing and export industries required to reduce or increase the real value of sterling to its current nominal value: and what is his forecast of the likely effect of such a reduction on output and employment in those industries;

(15) if he will list the industrial countries whose trade-weighted real rate of exchange for manufactured goods has appreciated more since the second half of 1973 than that of the United Kingdom, as measured by (a) the terms of trade for manufactures, (b) relative producer prices and (c) relative export unit values;

(16) pursuant to his answer of 4 July, Official Report, columns 13–14, whether he regards as inflationary for the purposes of monetary and exchange rate policy increases in the retail price of beer, wines and spirits and tobacco; what was the increase in retail prices in each case since (a) January 1987 and (b) August 1992; and how much of the increase was due to increases in (i) taxation, (ii) unit labour costs in production and (iii) unit labour costs in distribution.

(17) what assessment the Government made before joining the ERM of the effect on output and employment in manufacturing industry; and what was the actual outcome for the period considered;

(18) further to his written reply dated 4 July, c. 13–14, concerning the exchange rate and competitiveness, in what respects his monetary and exchange rate policies have changed since October 1989;

(19) what evidence he has of the effect of changes in the exchange rate have been greater than that required to compensate for an increase in the general level of prices; and what evidence he has that falls in the real exchange rate have been inflationary.

Mr. Nelson

I regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Member shortly and place a copy of the letter in the Library.