Trade: Import Substitution

Lord Vinson Excerpts

Wednesday 19th March 2014 Lords Chamber

Asked by

[Lord Vinson]

To ask Her Majesty’s Government what steps they are taking to correct the United Kingdom’s trade imbalance, and in particular with the European Union, by encouraging import substitution with a view to repatriating those jobs currently created overseas.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

Trade and investment are essential to returning the UK economy to balanced and sustainable growth. This Government have focused efforts on creating an attractive business environment in the UK, increasing support for UK firms to grow through exporting and introducing a new service supporting UK businesses to bring jobs back to the UK. Our actions will help UK businesses to compete across the globe, including in Europe and the high-growth market.

[Lord Vinson (Con)]

I thank the Minister for his very sagacious reply. Does he agree that, as mentioned in today’s Budget, we cannot go on borrowing abroad indefinitely to fund our huge trade imbalances, not least our £88 billion deficit with the EU last year? Currently, our exports are made even less competitive by an ever rising pound which then subsidises the import of goods, many of which we could perfectly well make here at home. Does he agree that, as a trading nation, we cannot ignore our exchange rate and that, by getting this down, we would bring home hundreds of thousands of jobs that our borrowings are creating overseas, reduce our indebtedness and help exports? Is this not a virtuous circle to be recommended as the best way of reducing unemployment and balancing our books?