House of Commons Hansard Debates for 15 Feb 1989

Mr. Alan Clark : The balance of trade in manufactured goods in 1988 is provisionally estimated to have been in deficit by £14.3 billion.

41. Mr. Win Griffiths : To ask the Chancellor of the Duchy of Lancaster what is his latest estimate of the deficit in manufactured trade for 1988-89.

Mr. Alan Clark : The balance of trade in manufactured goods in 1988 is provisionally estimated to have been in deficit by £14.3 billion.

Action for Cities"

29. Mr. Carrington : To ask the Chancellor of the Duchy of Lancaster how many offers of assistance have resulted from the "Action for Cities" presentations.

Mr. Newton : More than 400 of the firms represented at the seven "Action for Cities" working breakfasts held during 1988 expressed an interest in supporting the Government's inner city initiatives.

Chatlines

30. Mr. Roger King : To ask the Chancellor of the Duchy of Lancaster what discussions he has had with Oftel regarding the provision of chatline services.

Mr. Atkins : Both my right hon. and noble Friend the Secretary of State for Trade and Industry and I meet the Director of Telecommunications from time to time. At those meetings many significant telecommunications topics, including chatline services, have been covered.

Companies Bill

31. Mr. Steinberg : To ask the Chancellor of the Duchy of Lancaster what representations he has received on the terms of the Companies Bill [Lords].

Mr. Maude : I refer the hon. Member to the reply that I gave to the hon. Member for Nottingham, North (Mr. Allen) on 9 February at column 754.

42. Mr. Winnick : To ask the Chancellor of the Duchy of Lancaster what recent representations he has received on the terms of the Companies Bill [Lords].

Mr. Maude : I refer the hon. Member to the reply that I gave to the hon. Member for Nottingham, North (Mr. Allen) on 9 February at column 754.

Securities and Investments Board

32. Mr. McCrindle : To ask the Chancellor of the Duchy of Lancaster when he last met the chairman of the Securities and Investments Board ; and what matters were discussed.

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Mr. Maude : My right hon. and noble Friend and I will be meeting the chairman of the Securities and Investments Board today. A range of topics concerning the regulation of financial services will be discussed.

Mergers

33. Mr. Morgan : To ask the Chancellor of the Duchy of Lancaster what estimate he has of spending on mergers by companies in 1989.

52. Mr. Ted Garret : To ask the Chancellor of the Duchy of Lancaster what estimate he has of spending on mergers by companies in 1989.

Mr. Maude : Information for 1989 is not yet available. Statistics of acquisitions and mergers by industrial and commercial companies within the United Kingdom in 1988 were published in British Business on Friday 10 February.

Public Purchasing

35. Mr. Key : To ask the Chancellor of the Duchy of Lancaster if he will seek to ensure that public purchasing from abroad should be on terms which do not unfairly or illegally disadvantage home producers.

Mr. Alan Clark : Yes, indeed.

EC Trade Mark Office

36. Dr. Goodson-Wickes : To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the progress in London's bids to host the European Economic Community trade mark office.

Mr. Newton : Ten states originally submitted bids to host the Community trade mark office. London was included in a shortlist of four drawn up by the European Commission in 1987. The final choice, which requires unanimity, will be made by the Council of Ministers. It is not possible to predict when it is likely to reach a decision.

Personal Communications

37. Mr. Robert G. Hughes : To ask the Chancellor of the Duchy of Lancaster what response he has had to his Department's consultation paper entitled "Personal Communications in the 1990s".

Mr. Atkins : The publication of this document on 26 January has stimulated much interest. More than 700 copies have been distributed on request. Recipients have until 28 April in which to return comments.

Overseas Companies

38. Mr. Neil Hamilton : To ask the Chancellor of the Duchy of Lancaster how many overseas companies set up operations in Britain in 1988.

Mr. Atkins : According to the latest figures known to the Invest in Britain Bureau, during the first three quarters of 1988, 263 inward investment decisions were made to locate in the United Kingdom. These include the establishment of a new business, expansion or acquisition of an existing business and involvement in joint venture.

New Businesses

39. Mr. Harry Greenway : To ask the Chancellor of the Duchy of Lancaster how many new businesses started in

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the past year employed (a) up to 10 people, (b) up to 100 people and (c) more than 100 people ; what are the comparable figures for the year up to 3 May 1979 ; and if he will make a statement.

Mr. Atkins : In 1987, the latest year for which estimates were published, the number of new businesses registering for VAT in the United Kingdom was 205,000. In 1980, the earliest available year, the comparable figure is 158,000. Although information on the numbers of people employed is not recorded at registration, the estimates of turnover suggest that most employed less than 100.

Chambers of Commerce

40. Mr. Paice : To ask the Chancellor of the Duchy of Lancaster when he last met representatives of the chambers of commerce ; and what matters were discussed.

Mr. Newton : I met representatives of the Association of British Chambers of Commerce on 25 January. A wide range of matters were discussed.

Companies (Performance)

43. Mr. Cousins : To ask the Chancellor of the Duchy of Lancaster what measures he proposes to take to enable investors to make fair comparisons of company performance.

Mr. Maude : The Companies Bill contains provisions that will make it easier for investors to compare the performance of different companies. The Bill will implement the European Community's 7th directive on company law, thereby harmonising disclosure requirements for consolidated accounts, helping to tackle the problem of off-balance sheet financing, and improving the presentation of the effects of mergers and acquisitions in some company accounts. The Government will also continue to support the efforts of the accountancy profession to make it easier to compare financial statements by the development of accounting standard.

Trade Deficit

44. Mr. Allan Roberts : To ask the Chancellor of the Duchy of Lancaster which Organisation for Economic Co-operation and Development countries are running a larger trade deficit as a percentage of gross domestic product than the United Kingdom.

Mr. Alan Clark : In 1987 Greece, Portugal, Turkey, Spain, Austria and the United States had larger visible trade deficits than the United Kingdom in relation to their gross domestic product. The OECD figures for 1988 are not yet complete, but we already know that at least four countries will have deficits larger than the United Kingdom when measured on this basis.

Motor Industry

45. Mr. Hoyle : To ask the Chancellor of the Duchy of Lancaster when he last met the chairman of the Ford Motor Company (UK) to discuss the state of the motor industry.

Mr. Atkins : I have not met the chairman of the Ford Motor Company Ltd. since taking up office, but my Department is in regular contact with the company.

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Export Promotion

46. Mr. Bevan : To ask the Chancellor of the Duchy of Lancaster if he will make a statement on progress on recent initiatives on export promotion.

Mr. Alan Clark : We have completed the export services review foreshadowed in the White Paper "dti--the department for Enterprise". Its constituent parts are detailed in the written reply given on 17 January by myself to my hon. Friend the Member for Stroud (Mr. Knapman) at columns 106 -8.

Recycled Paper

47. Mrs. Gillian Shephard : To ask the Chancellor of the Duchy of Lancaster what estimates have been made of the cost savings that could be made if his Department used recycled paper.

Mr. Atkins : My Department uses paper having recycled content where this is consistent with operational efficiency and offers good value for money. Recycled paper can be more expensive than other types of paper of comparable quality, but I am reviewing the scope for making increased use of recycled material in the light of recent market developments.

Liquidators

48. Mr. Holt : To ask the Chancellor of the Duchy of Lancaster what plans he has to control and regulate the activities of liquidators.

Mr. Maude : The Insolvency Act 1986, which came into operation on 29 December 1986, requires all persons to be suitably qualified and authorised before acting as insolvency practitioners. This includes being appointed to the office of liquidator.

There are no plans to regulate further their activities.

Industry-School Links

49. Sir Fergus Montgomery : To ask the Chancellor of the Duchy of Lancaster what steps his Department has taken to improve links between industry and schools.

Mr. Forth : My Department has a keen interest in promoting partnership between business and schools. Last year we launched the enterprise and education initiative, which is an ambitious programme that will extend the benefits of partnership activity to all schools. Working with organisations already active in the partnership area, DTI's 145 local advisers on enterprise and education will approach employers to ensure that there are places for all pupils to have at least two weeks work experience before leaving school. In addition, we are setting up a programme under which 10 per cent. of teachers will each year be given the opportunity to gain first hand experience of the world of business. My Department also supports much other partnership activity, including initial teacher training, both on a national basis and through our regional office network.

Interest Rates

50. Mr. McWilliam : To ask the Chancellor of the Duchy of Lancaster what has been the cost to industry of the rise in base rates since April 1988.

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Mr. Newton : I refer the hon. Member to the answer that I gave today to the hon. Member for Dumbarton (Mr. McFall).

70. Mr. Leadbitter : To ask the Chancellor of the Duchy of Lancaster what representations he has had from industry on the effect of interest rate policy on the trade deficit.

Mr. Alan Clark : Contacts which my Department has with industry often involve discussions concerning interest rate policy.

Regional Policy

51. Mr. Meale : To ask the Chancellor of the Duchy of Lancaster whether any review of regional policy will take place in the run-up to 1992.

Mr. Atkins : Regional policy is under constant review.

Trade Barriers

53. Mr. Oppenheim : To ask the Chancellor of the Duchy of Lancaster what action the Government are taking to ensure that the European Community does not erect protectionist trade barriers.

Mr. Alan Clark : The Community's common commercial policy is determined by the Council of Ministers on the basis of proposals from the Commission. The United Kingdom plays a full and vigorous part in this process in the light of our experience of the beneficial economic effects of competition and deregulation. The Community is negotiating in the Uruguay round of GATT negotiations for a substantial liberalisation of trade worldwide.

Japanese Companies

54. Mr. Dunn : To ask the Chancellor of the Duchy of Lancaster how many people are employed in the United Kingdom by subsidiaries of Japanese companies.

Mr. Atkins : According to the census of production for 1986 there were 7,800 people employed by Japanese-controlled manufacturing enterprises in the United Kingdom.

Rural Post Offices

55. Mr. Amos : To ask the Chancellor of the Duchy of Lancaster if he will make a statement on what directions he has given to the Post Office on the future level of provision of post offices in rural areas.

Mr. Forth : None ; decisions on the appropriate level of service provision in particular areas are an operational matter for the Post Office chairman and board. As far as the general extent of the network is concerned, we have made it clear on a number of occasions that the Government remain committed to a network of offices adequate to enable the Post Office to fulfil its statutory duty to have regard to economy and efficiency and to the social, industrial and commercial needs of the United Kingdom.

Manufacturing Output

56. Mr. Galloway : To ask the Chancellor of the Duchy of Lancaster which Organisation for Economic

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Co-operation and Development countries have shown a greater increase in manufacturing output since 1979 than the United Kingdom.

Mr. Atkins : Between 1979 and 1987 (latest available), the following OECD countries are recorded as showing a greater increase in manufacturing output than the United Kingdom :

Canada, USA, Japan, Australia, Austria, Belgium, Finland, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and Yugoslavia.

62. Mr. Gerald Howarth : To ask the Chancellor of the Duchy of Lancaster what are the latest figures he has for the levels of output of the manufacturing industry.

Mr. Atkins : Manufacturing output in the fourth quarter of 1988 was at a level of 117.0, based on 1985 equal to 100. This was the highest ever quarterly level, over 10 per cent. above its 1979 average level and nearly 6 per cent. above the previous all-time peak of 1973.

Internal Market

57. Mr. Graham : To ask the Chancellor of the Duchy of Lancaster how many standards set under the development of the internal market are based on British standards ; and how many are based on (a) German standards, (b) French standards and (c) those of other European Community countries.

Mr. Maude : The European standards bodies, CEN and CENELEC, adopt, wherever appropriate, agreed international (ISO and IEC) standards. Very few European standards are based on an existing standard of any one Community country.

Single European Market

58. Mr. Moss : To ask the Chancellor of the Duchy of Lancaster, what is the latest evidence he has of awareness in the business community about the opportunities presented by the completion of the single European market in 1992.

Mr. Maude : DTI's survey of business response to the single market show that over 90 per cent. of firms throughout the country are aware of the single market challenge.

Mr. Tom Clarke : To ask the Chancellor of the Duchy of Lancaster what is the current percentage of United Kingdom businesses exporting to European Economic Community countries ; and what effect he expects the 1992 European single market campaign to have on that figure.

Mr. Alan Clark [holding answer 14 February 1989] : It is not possible directly to answer the hon. Member's question in percentage terms. In 1988 European Community countries accounted for 50 per cent. of total United Kingdom exports. The effects of the 1992 single European market campaign on that figure depend on the extent to which United Kingdom businesses take full advantage of the opportunities opening up to them.

Industrial Regeneration (Sunderland)

60. Mr. Devlin : To ask the Chancellor of the Duchy of Lancaster what progress has been made on the package of measures he announced in December to assist industrial regeneration in Sunderland.

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Mr. Newton : I am pleased to say that good progress is being made on the package of measures that I announced to the House on 7 December last.

My right hon. Friend, the Secretary of State for the Environment, is at present consulting in the European Commission on the proposals for an enterprise zone. In the meantime discussions are taking place with local bodies in Sunderland on boundaries.

English Estates North has drawn up plans for building the first phase of a new business park on the Hylton riverside site in conjunction with the Tyne and Wear development corporation. Work will start in early summer and be completed by the end of the year. A new company has been formed to undertake counselling, placement and training of employees affected by the NESL closure. A total of £5 million has been set aside for this. To date, over 1,000 people have received counselling and out of those more than 200 have been successfully placed. A further £5 million of the fund is to be administered via a recently launched initiative led by the private sector, with the participation of the Sunderland borough council and Tyne and Wear development corporation. This body, the Wearside Opportunity, will concentrate on local initiatives to help regenerate industry by encouraging local enterprise through project support and business leadership. An experienced official from my Department has been seconded to the Wearside Opportunity to provide administrative back-up. Progress is being made in identifying projects requiring support.

In addition to these measures, I have made available, via the city action team, a further £1.5 million during the current financial year for 13 enterprise and training projects in Sunderland.

Funeral Costs

63. Mr. Kirkwood : To ask the Chancellor of the Duchy of Lancaster what action he is taking in response to the report published by the Office of Fair Trading on funeral costs.

Mr. Forth : I refer the hon. Member to the reply that I gave to the right hon. Member for Stoke-on-Trent, South (Mr. Ashley) on 1 February at columns 263-64.

Imperial Weights and Measures

64. Mr. Beith : To ask the Chancellor of the Duchy of Lancaster what responses he has received in favour of the continued availability of imperial weights and measures.

Mr. Maude : Some 700 trade, industry, local authority and consumer organisations were consulted last autumn on proposals to phase out the remaining imperial units of measurement for most trade purposes by the end of 1994 subject to certain exemptions, including the pint for sales of draught beer and cider and milk in returnable bottles ; the troy ounce for bullion dealing ; and the mile for speed and distance measurement. Only two organisations responded opposing the general principle of further metrication. However, 22 requests were received to continue the use of imperial units for certain other specific purposes.

Knitwear and Hosiery (Leicester)

65. Mr. Janner : To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the current state of the knitwear and hosiery industries in Leicester.

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Mr. Atkins : While I recognise the difficulties facing many firms in this sector, the hosiery and knitwear industries have made a major contribution to Leicester's economic and industrial development. I am confident that they will continue to adapt to technological and other changes to the further benefit of the local and national economies.

Cellular Radio

67. Mr. Nicholas Bennett : To ask the Chancellor of the Duchy of Lancaster what steps his Department has taken to relieve congestion in the cellular radio network.

Mr. Atkins : As I announced on 26 January we are extending the availability to the cellular radio operators of 400 radio channels, until now reserved for MOD use except in the area of central London, out to the area embraced by the M25 and five miles beyond. The use of these channels will be on a pre-emptible basis.

Enterprise Initiative

68. Mr. John Greenway : To ask the Chancellor of the Duchy of Lancaster how many applications have been received for consultancy projects through the enterprise initiative.

Mr. Newton : Since the launch of the scheme in January 1988 over 18,000 applications for assisted consultancy had been received up to the end of January 1989.

Civil Research and Development

69. Mr. Worthington : To ask the Chancellor of the Duchy of Lancaster which Organisation for Economic Co-Operation and Development countries spend a greater proportion of gross domestic product on civil research and development than the United Kingdom.

Mr. Forth : The available information is for 1985 and relates to gross expenditure on research and development (R&D), excluding R&D for defence purposes funded by national defence ministries as a percentage of gross domestic product. This showed that the following countries spent a greater proportion than the United Kingdom in 1985.

Federal Republic of Germany

Japan

Netherlands

Sweden

Switzerland

United States

Thirteen other OECD member countries spent a smaller proportion than the United Kingdom.

Balance of Payments

71. Mr. Wall : To ask the Chancellor of the Duchy of Lancaster what is now his estimate for the deficit on the balance of payments for 1988.

Mr. Alan Clark : The deficit on the current account of the balance of payments for 1988 is provisionally estimated to be £14.3 billion.

Takeover Bids

Mr. Tim Smith : To ask the Chancellor of the Duchy of Lancaster how many takeover bids were considered by the Office of Fair Trading in 1988.

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