HC Deb 21 March 1994 vol 240 c17W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer (1) what was the change in the terms of trade for finished manufactures since the winter of 1986–87; and what has been the effect of the change on(a) imports and exports of finished manufactures and (b) output and employment in manufacturing industry;

(2) what was the change in the terms of trade for finished manufactures since the second half of 1973; and what has been the effect on (a) imports and exports of finished manufactures and (b) output and employment in manufacturing industry.

Mr. Nelson

In the fourth quarter of 1993, it is estimated that the terms of trade of finished manufactures were 12 per cent. higher than in the two winter quarters of 1986–87 and 32 per cent. higher than in the second half of 1973. No estimates are available for the contribution of the terms of trade in finished manufactures to changes in exports and imports of finished manufactures or manufacturing output and employment.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what proportion of semi-manufactures imported from non-EEC countries competes on price directly or indirectly with home-produced goods; whether the prices of such imports have risen or fallen in the last three years; and what effect the price changes have had on domestic production.

Mr. Nelson

Figures for the prices of imported semi-manufactures from non-EEC countries are available on the Central Statistical Office data base, which can be accessed through the House of Commons Library. The identifier is ENUK. All imported semi-manufactures potentially compete directly or indirectly with home-produced goods. No estimates are available of the effect of these import price changes on domestic production.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer if he will publish a table showing the reduction in imports and increase in exports of manufactures which the Treasury model of the economy shows would follow a reduction in the sterling exchange rate against the ecu to its average in February 1993 after 12 and 24 months.

Mr. Nelson

All hon. Members have access to the Treasury model through the House of Commons Library. It is Treasury practice not to provide the results of model simulations in answer to parliamentary questions. This is due both to the excessive cost involved and the difficulty in making appropriate assumptions without knowing the context in which the figures will be used.