§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what effect the increase in the exchange rate against the ecu since February 1993 has had on the profitability of United Kingdom exports to the rest of the EC of manufactured goods; and what is his assessment of the part that played in the sale of Rover cars to BMW.
§ Mr. NelsonThe profitability of United Kingdom exports of manufactures to the rest of the EC depends on a number of factors. No estimate is available of the effect on such profitability of the exchange rate against the ecu. The sale of Rover to BMW is a matter for the firms themselves.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what was the visible balance of trade in manufactures on a balance of payments basis as a percentage of gross domestic product in 1971, 1979, 1989 and estimated for 1993: what assessment he has made of the reason for the changes; and whether he will publish the change in the (i) nominal and (ii) real rate of exchange which the treasury model of the economy shows would be required to restore the balance in terms of gross domestic product to what it was in (iii) 1978 and (iv) 1971.
§ Mr. NelsonFigures for the visible balance of trade in manufactures and for gross domestic product are available on the CSO database, which can be accessed through the House of Commons Library. The identifiers are BPJF and244W CAOB. A country's visible trade balance depends on the strength of its own domestic demand and that of its trading partners, and on the level of its competitiveness.
All 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.