§ Mr. Austin MitchellTo ask the President of the Board of Trade what evidence he has that United Kingdom manufacturers generally have gained more than they have lost as a result of the single market.
§ Mr. NeedhamOne year on from the completion of the single market framework, it is too early for a full assessment of its effect on United Kingdom manufacturers. It will take some time for companies fully to adjust to the single market changes and to exploit all the new opportunities. This is true for all member states: thus the European Commission will not be producing an assessment of the economic impact of the single market. until 1996.
Nonetheless, a number of surveys indicate that British firms are already benefiting from the single market. For example, a CBI survey in November 1993 found that 68 per cent. of United Kingdom companies interviewed were experiencing greater opportunities for trade with the rest of the European Community now, compared with five years ago.
In 1992 Customs and Excise produced an analysis of the costs and benefits to business as a result of changes under the single market customs, VAT, excise and trade statistics regimes. They have recently, as part of a single market implementation review involving consultation with about 1,000 businesses, carried out an initial validation of the cost/benefit analysis. This confirms the original assessment that there should be an overall net benefit to United Kingdom business of at least £440 million during the first five years. Additional benefits, arising from increased trade opportunities and the scope for efficiencies in transport units and stock levels, which were not included in the initial analysis, were also identified.