asked the Secretary of State for Trade if he is satisfied with the present distribution of grant and subsidies for tourism.

As I told my hon. Friend the Member for Harrow, Central (Mr. Grant) and others on 21 May, we are at present considering whether to make changes in the ways the Government support the industry.

I thank the Minister for his reply, and welcome the review that he is presently undertaking. Does he accept that the present distribution of grants discriminates unfairly against the South Coast resorts, and, as all our resorts and tourist centres are in stiff competition with those in Europe, does he agree that they all ought to benefit fairly from those grants and subsidies which are available?

As my hon. Friend knows, I am all in favour of fairness in all things, but to him to expect me to go further than that is to ask me to prejudge the outcome of the review that we are undertaking.

Bearing in mind that tourism concentrates its pressures mostly in the south, will my hon. Friend use any grants at his disposal to create and enhance tourist attractions in the North of England particularly in areas away from the existing centres such as York?

Once again, if I may say so, I do not create tourist attractions. Most of them were created long before our time and are not Government responsibilities in any way. Certainly the funds that we have, which go through the BTA, the ETB and the other organisations concerned, are designed largely to draw the attention of travellers to the attractions of places other than London and the South-East.

asked the Secretary of State for Trade what representations he has received from small businesses about the effect on them of the Budget proposals.

I have not received any such representations.

Will the right hon. Gentleman accept that I have, and that most of the small business men to whom I have spoken since the announcement of the Budget proposals feel let down and betrayed by their so-called friends? They are deeply concerned and worried about the effect on their businesses of VAT, increases in rents and rates, the increase in oil prices and the increase in transport charges. They are very concerned that many of them will go bankrupt. What do the Government intend to do to justify the promises they made to small business men during the election?

I can understand that the hon. Gentleman may not necessarily like a Conservative Budget, but a large number of the representative bodies that support the interests of small businesses—the CBI Small Firms Council, the Federation of Self-Employed and the Association of Independent Businesses—have all sent in comments to the Department of Industry saying that they thought the Budget was very welcome to small businesses. That is the opinion of those who represent small businesses, although I appreciate that the hon. Gentleman may feel differently.

Is my right hon. Friend aware that I have received representations from my constituents welcoming the fact that both the owners and the workers in small businesses now have a renewed incentive as a result of the cuts in income tax? Is he aware further that they welcome particularly the return to a single rate of VAT, which simplifies their own administration expenses?

My hon. Friend is quite right. It requires a Conservative Government to create an economic environment where incentives are available to both the shop floor and management, where enterprise can flourish and where there is less bureaucracy. We are pursuing all of these objectives, but I can appreciate that Labour Members do not understand this.

What will be the rate of inflation by the end of this year? Given the fact that on the Government's own admission the effects of the Budget will create a 17·5 per cent. inflation rate by November, is it not clear that with other price increases on the way there will be a rate of inflation of 20 per cent. by the end of this year, and that within eight months the Government will have doubled the rate of inflation which they inherited?

The right hon. Gentleman knows quite well that in the Budget there has been a switch in the burden of taxation, so that now there is less taxation on earning and saving and more on spending. In the first three Budgets of the Government of which the right hon. Gentleman was a member, the RPI was increased by 5 per cent. and the standard rate of income tax went up by 5p. In both cases his party made the situation infinitely worse. It did not switch the burden of taxation but increased it.

asked the Secretary of State for Trade whether the sum of £1·5 million mentioned in his Department's publication "Improved arrangements to combat pollution at sea" covers specialised equipment for use in off-loading oil, chemicals and liquefied gases from ships involved in serious accidents and, if not, what arrangements have been made for off-loading such hazardous cargoes in the Thames estuary.

The sum mentioned includes an estimate of the cost of two caches of specialised equipment for off-loading oil and most chemicals from stricken tankers.

Obviously the answer is "No". Is my hon. Friend aware that his answer makes no reference at all to the greatest hazard of all, liquefied natural gas, 12,000 tons of which are off-loaded at Canvey in my constituency every week? Is he aware that, in the light of modern knowledge, the transhipment and storage of liquefied natural gas is a major hazard and is being carried out next door to 34,000 people? Is it not clear that there is no way of unloading an LNG tanker in trouble save to another tanker, unless it is taken to and off-loaded at Canvey? This is a risk which is unacceptable to the local authorities. Therefore, will my hon. Friend at once consult his colleagues to ensure that LNG is banned from the Thames estuary altogether?

First, my hon. Friend asks me whether the sum in question covers specialised equipment for use in off-loading oil—which it does—chemicalswhich it does—and liquefied gases—which it does not yet do. So the answer might have been "Yes, yes and no." But my hon. Friend would have thought that to be a very curious answer indeed had I given it to him in that form.

Where in Scotland are stocks of specialised equipment kept for dealing with accidents of this sort? Will the Minister assure us that the lessons of the accidents which have already taken place at Sullom Voe have been learned and that the necessary steps have been taken to prevent any further such occurrences?

The right hon. Gentleman asks where in Scotland stocks are kept. To the best of my belief, there is not a cache of the Government's stores in Scotland. They are positioned at such places that they can best be moved to wherever the need arises. There are caches of company-owned equipment at other places. The nearest Government stores to Scotland would probably be that at Pembroke, which is positioned in order that it can be air-lifted as soon as possible to the site where it is needed. But there is not the money available to position stocks everywhere.

Nevertheless, is my hon. Friend aware that in the Solent area, where the "Tarpenbek" is currently floundering around, there is widespread dissatisfaction with the methods continuing to be employed by his Department in coping with the problem of off-loading oil? Will he now give an assurance that he personally will look into the technology which is available, and will also look into the worrying question that his own Department's developed technology, which the Department seems intent on pushing to the exclusion of everything else, is given no more priority than it deserves in accordance with its ability to deal with off-loaded oil problems?

I have been looking at the matter, as my hon. Friend can imagine, especially as we have a tanker in trouble at present. I am satisfied that the way in which that tanker has been dealt with is the best possible way that it could have been dealt with. No doubt, when the incident has been completely dealt with, we can review the situation, and I think that my hon. Friend will come to the same conclusion.

Does not the hon. Gentleman's answer that the nearest cache of equipment to Scotland is in Pembroke sound nonsense? Are there not further caches of equipment around the coast that are available? Will the hon. Gentleman acquaint the House with what I think the whole House wants to know? What further actions are the present Government taking following the Department's publication "Improved arrangements to combat pollution at sea"?

I think that the hon. Gentleman might assume that if I gave an answer I did not think that it was nonsense. [HON. MEMBERS: "Oh!"] What he thinks of it is another matter. As he knows, I thought that most of the answers which he used to give were nonsense, too. On the other hand, however, I have been in my present office for about eight weeks. I have been building on the work which was done in that office during the hon. Gentleman's time there and, in particular, on the organisation which was set up for dealing with pollution. As time goes on, we shall improve it.

rose—

Order. Both questions and answers seem to be rather longer today.

asked the Secretary of State for Trade what proposals he has concerning financial assistance to the British film industry; and if he will make a statement.

At my right hon. Friend's request, a senior official is carrying out an urgent review of a number of aspects of the film industry, including the question of financial assistance.

Does not the Minister agree that the best of British film makers are as good as any in the world and that from an economic point of view, apart from an artistic point of view, they ought to be encouraged? The reply which the Minister has just given is extremely disappointing. How soon will recommendations be made about the second report of the Interim Action Committee on the Film Industry, which reported only last week, particularly on the Eady levy?

The Government recognise the value to Britain of a vigorous British film industry and wish to encourage its development. The second report to which the hon. Gentleman referred is being considered in parallel with the review which I mentioned.

If aid must go to the British film industry, will my hon. Friend make quite sure that it does not go to support indecent productions?

It is offensive to most people that public money should be used to benefit films which exploit sex or violence. That factor will be taken very seriously into account in the review.

What positive steps will the Government take in order to support and encourage independent British film producers who have produced very good films in the past?

The hon. Lady will appreciate that that is an important factor which will be taken into account in the review.

asked the Secretary of State for Trade if he will pay an official visit to the site for a possible third London airport near Leighton Buzzard, Bedfordshire.

I have at present no plans to do so. I shall consider the need for a third London airport and its siting when the studies currently in hand have been completed.

As Parliament decided in the early 1970s that this area of the country should definitely not provide a site for a third London airport, and as it is equally unsuitable today, will my hon. Friend give an assurance that there will be no publication of any conclusions of the South-East Airports Planning Committee or of the Government until Parliament has reassembled after the Summer Recess?

The committees are not Government committees. Therefore, it is doubtful whether I could even require them not to publish their reports. Even if I did so, I imagine that, as usual, they would be leaked in the press before they were officially published, in any case.

As the projections for the expansion of air traffic were based on much more optimistic forecasts of the availability and the price of aviation fuel than can now be sustained, does the hon. Gentleman agree that we ought now to hold up all further plans for a third London airport until a thorough reassessment of the situation has taken place?

A thorough reassessment of the situation is taking place.

Is my hon. Friend aware that if the Labour Government, aided and abetted by the Liberal Party, had not in 1974 dropped the Maplin proposal, that could have been in operation by 1981 or 1982? Is he aware that people living around Heathrow and Gatwick are now desperately in need of an urgent decision on this matter, because they are burdened with a grossly unfair share of aircraft noise?

The decision will not he delayed needlessly.

asked the Secretary of State for Trade if he will make a statement on his proposals for denationalisation of British Airways and other bodies of which his Department is the sponsoring Ministry, and for an acquisition of a stake by the work force in such bodies.

My right hon. Friend and I are considering how best to meet the future capital requirements of British Airways, but I am not yet in a position to make a statement.

I understand my hon. Friend's reluctance, quite rightly, to jump to any conclusions. However, is he aware that the views which are expressed by individual members of British Airways tend to be at variance with those sometimes put forward by the official trade unions purporting to act on behalf of the people whom they are supposed to represent? Will my hon. Friend give some indication, therefore, of how he intends to ensure that adequate consultation is carried out, that the views of those who work in British Airways will be sought in depth and that the consultations will not be a charade?

That is getting a little far along the road of consulting after we have decided what course to recommend. I shall speak to the leading trade unionists concerned and hope also to speak to many of those who work for the corporation.

Is the hon. Gentleman aware that much uncertainty about the future of British Airways was caused by foolish statements of members of the Conservative Party during the election? It is of the highest importance that it is made clear as soon as possible that British Airways will remain a publicly owned concern and that private interests will not benefit from public investment.

The actions that the Government take will be those that will benefit the public interest in its widest sense.

Will the hon. Gentleman bear in mind the growing frustrations of passengers using the Belfast-London shuttle service? That service seldom leaves on time, seldom has a back-up aircraft as promised and has an inferior luggage service. The whole service is disgraceful. Will the hon. Gentleman also keep in mind British Airways' threat that if another operator takes over that line it will stop its operation?

The hon. Gentleman wants an aircraft to himself.

I take note of all that the hon. Member for Antrim, North (Rev. Ian Paisley) has said. I formerly worked for British Airways and have a great deal of sympathy for the corporation, but my sympathies are primarily with the passengers, who desire the best service. It is the object of this Government to give it to them.

asked the Secretary of State for Trade what representations have been made by the Government to the United States Government in the light of the United States grand jury decision to indict criminally seven transatlantic shipping groups, including Cunard, for alleged violations of United States anti-trust laws; and what reply has been given by the United States authorities.

Her Majesty's Government have on a number of occasions made their concern at the indictments very clear to the United States Administration. We have in particular warned them that their action endangers future co-operation on anti-trust matters.

Will the right hon. Gentleman recognise that we need to get out of the present impasse and should therefore urgently resume the previous dialogue? In that dialogue we might suggest independent surveillance of the conference system while doing our best to persuade the United States authorities and agencies of the merit of that system, particularly in regard to the Russian threat?

I agree that shipping is an international activity. We must try to get together around the table with the United States in order to solve these problems and prevent such a situation from arising in future. As the hon. Gentleman knows well, there are many problems, but I agree that joint discussion is a much better way of proceeding than the situation that has resulted from recent incidents.

asked the Secretary of State for Trade when he last met the chairman of British Airways.

My right hon. Friend and I last met Mr. Ross Stainton on 26 June 1979.

When the Minister welcomes Mr. Stainton to the chairmanship of British Airways, will he urge him to improve the quality and reliability of its services. They have fallen behind considerably in recent months. To that end, and with a view to increasing profitability and productivity, will the Minister countenance any move to reduce over-manning in British Airways, at least to the extent of natural wastage?

The day-to-day management of British Airways is for the board. In conversations with Mr. Ross Stainton and his colleagues, my right hon. Friend and I made plain that we supported the ambition of British Airways to be a substantial, profitable carrier in the years to come.

In view of the urgent need to conserve fuel, will the Minister draw the attention of British Airways to the waste involved in supplying a special aircraft to fly to Glasgow crews who refuse to stay overnight in Northern Ireland?

I am sure that British Airways will take note of what the hon. Gentleman says, and I shall draw the matter to the attention of the corporation.

Will the Minister make a clear, flat and unequivocal statement to the chairman of British Airways that the Government have no intention of including the corporation in the ludicrous denationalisation proposals? Furthermore, it should be stated that the public and the workers in that corporation will not tolerate an industry that has received massive public support being stripped in that way.

I assure the hon. Gentleman that there will be no ludicrous proposals about British Airways.

In his review of the future of British Airways, will my hon. Friend consider carefully the possibility of allowing some private equity participation in the corporation? Will he bear in mind that national carriers such as Swissair and Lufthansa are not wholly State-owned and provide a good service for the travelling public?

That is precisely the sort of consideration that will be taken into account, because it is a sensible one.

asked the Secretary of State for Trade if he will make an official visit to Nigeria.

I have no plans to visit Nigeria in the immediate future.

Will the Minister accept that our trade with Nigeria is extremely important, particularly in oil? Will he agree that nothing is more certain, if the Government recognise the Zimbabwe-Rhodesia Government, than that trade will be seriously in jeopardy?

I recognise that our trade with Nigeria is of considerable importance to this country. Lord Harlech discussed Rhodesia with the Nigerian Government the other day, and I hope that Nigeria and other African countries will appreciate our objective of bringing Rhodesia back to legality with the widest possible international recognition.

Will my right hon. Friend also bear in mind the need to look at the whole of southern Africa in the context of trade? Will he also bear in mind, before hon. Members on the Labour Benches become too hypocritical, that the previous Government traded with southern Africa and encouraged such trade?

The peace and security of southern Africa are of crucial importance to this country and also to all African countries.

The Conservative Party has always argued that we must protect British interests. The balance of British interests is in favour of considering the reaction of Nigeria rather than that of Bishop Muzorewa. Why do the Government now dispense with that argument?

The Government are determined to encourage trade with African countries in general. We are doing our utmost to that end. The Nigerian economy has had difficulties in the past 15 months, resulting from a downturn in economic activities. Those have reflected themselves in our exports to that country. Our exports have also been affected adversely by the lorry drivers' strike and a host of other special circumstances. We are doing our best to encourage trade with Africa, as the hon. Gentleman well knows.

Will my right hon. Friend agree that the recognition of the Government of another country should depend solely on whether that Government have control of the territory and should not imply moral or political approval of the internal arrangements in that country?

I cannot dictate to or patronise the Nigerian Government in their attitudes to the Rhodesian question. That is for the Nigerians. In so far as our relations with Nigeria are strained by that question, I hope that they will see that it is unnecessary for them to take that attitude. Lord Harlech has been to Nigeria and has discussed the matter. I hope that normal trade relations will be resumed.

Is the Secretary of State aware that if the Government decide to end sanctions against Zimbabwe-Rhodesia the result will be an immediate and adverse effect on Britain's trading relations, not only with Nigeria but with many other African countries? Will he put these British economic interests to the forefront, even though the Prime Minister seems, unfortunately, to have decided this matter already?

I do not understand that at all.

asked the Secretary of State for Trade if he will make a statement on the Government's plans to promote competition in the retail sector by favouring development of hypermarkets.

Large stores such as hypermarkets can offer price advantages and convenience to some shoppers, but specialist shops and the small shopkeepers have an important role to play, particularly in catering for people who prefer a greater degree of personal service. We believe the public interest is best served if the retail trade is allowed to evolve in response to its market without Government intervention. Local conditions need, of course, to be taken into account when new developments are considered by planning authorities.

How can the Minister, having just made that statement, agree with the Minister of State who, in a recent speech to the Industrial Society, gave unqualified support for out-of-town hypermarkets, which can be reached only by energy-consuming private vehicles? Why cannot we have these large stores in the city centres so that the old folk who have the benefit of concessionary fares may take advantage of some of the cheap prices?

The hon. Gentleman is heavily misrepresenting the nature of my right hon. Friend's speech, which conformed exactly with what I said. The hon. Member raises planning matters which are the responsibility of the Secretary of State for the Environment. However, advice issued to local authorities recently says that large stores of this kind should, wherever possible, be located in the urban areas.

Will my hon. Friend make certain that he does not favour any specific type of retail development? Will he ensure that there is an equal amount of opportunity for the small trader, the ordinary shop and the hypermarket? We want a fair structure of competition, not one section being favoured at the expense of another.

I assure my hon. Friend that my right hon. Friend will continue to be absolutely impartial in these matters.

asked the Secretary of State for Trade what action he proposes to take to follow up the results of the UNCTAD conference in Manila.

Matters debated at the conference will be followed up initially at the October meeting of the UNCTAD Trade and Development Board. We shall play an active part in preparations for this meeting within the European Community and in OECD as a whole.

Will my hon. Friend accept that the conference represented a limited, positive step in the right direction and that we congratulate him upon his important role in it? Will he say whether the Government intend to publish a White Paper on the matter and, if so, could he anticipate its contents to the extent of telling us something about the steps that will be taken to remove non-tariff barriers and to establish a common fund for the stabilisation of foreign exchange earnings of primary producers?

A White Paper will be published which will set out the results of the conference. This should go some way towards removing some of the misgivings about the conference and the feeling that it was not a success. In my view, it was a great success, not only because of the things that it decided to do, but because of the things that it decided not to do, many of which would have damaged the interests of those who wished to do them.

Is not the Minister aware that many of the Third world countries will feel badly damaged by the trading arrangements? They do not feel that a positive enough contribution has been made by UNCTAD. Is it not a fact that the EEC is using its barriers against Third world countries to their disadvantage? What does he intend to do to change that situation?

In discussions with individual member States from the Third world, I found that they took quite different views from the one that was stated publicly. In consultations with representatives of four of the countries after the conference, I found that they all felt that they had gained something very worth while from the conference.

Will my hon. Friend tell us when he expects the White Paper on UNCTAD to be published? What steps do the Government propose to ensure that the common fund headquarters is in London?

We hope to publish the White Paper as soon as possible. A number of considerations, not least of which is public expenditure, are involved in the siting of the common fund headquarters. However, my right hon. Friend and I are exploring every possible way of encouraging that fund to be based in London.

asked the Secretary of State for Trade by how much in money terms imports exceeded exports in the first five months of this year.

asked the Secretary of State for Trade what was the United Kingdom's current account deficit in the most recent month for which figures are available.

The trade figures so far this year have been distorted as a result of industrial action, and need to be interpreted with caution. The published figure of a visible deficit of £1,693 million in the first five months of this year overstates the underlying deficit, while the published current account deficit of £75 million in May is likely to understate the underlying position.

Are there not grounds for believing that under-recording, as a result of the computer operator's strike, is masking a deficit on visible trade of more like £2 billion rather than the official figures that my hon. Friend has just given? Is it not clear that one of the legacies inherited by this Government is a very serious deterioration in non-oil trade? What are the prospects for the year as a whole?

My hon. Friend is right to point out that the figures I have just reported to the House are part of a legacy which the previous Government left us. It is not possible to predict the annual outcome on the basis of the present figures because the figures are so distorted—by the strike and by other factors, such as stocking up, and the distorting effects of our trade with Iran and Nigeria.

How do the figures square with the claim made by the former Chancellor of the Exchequer that the new Government had inherited a surplus on the balance of payments?

I am not prepared to waste my time or that of the House trying to justify the statements of the former Chancellor.

Has the Minister noticed that the worst visible deficits at present are in manufacturing trade with the EEC Six? Is he aware that this deficit did not exist before the Tories took us into the EEC?

The right hon. Gentleman is right—the major part of the deficit is our underlying deficit with the EEC. But that is hardly surprising since the EEC is far and away our biggest trading partner, representing more than 40 per cent. of all our trade. The proportion of our imports from the EEC covered by our exports is improving.

Is the Minister aware of the increasing number of Christmas cards, subsidised by the Russian Government in order to gain precious foreign exchange, that are being exported to—nay, dumped in—this country to the substantial detriment of British manufacturers and those whom they employ? Does he intend to investigate this state of affairs?

My hon. Friend will not be surprised to hear that that was the first time that particular problem had been brought to my attention. I assure him that, having learned about it. I shall investigate it.

Does the Minister agree that if there is an increasing switch of purchases from British factories to EEC factories it will lead to growing unemployment and de-industrialisation in this country? If it is right to impose quotas on Japan, is it not right to impose them also on countries such as Germany?

It would be illegal because of our treaty obligation, which prevents us from doing so. The hon. Gentleman must not just look at the areas in which we do not do well. There are many other areas in which we do extremely well, and if others adopted the attitude that he is advocating now world trade would grind to a halt.

asked the Secretary of State for Trade if he is satisfied with the present status of insider dealing within the law: and if he intends to introduce legislation to outlaw it.

I accept the need for legislation of this kind, provided that satisfactory answers can be found to the difficult problems of definition. I intend to cover insider dealing in the next companies Bill.

In view of the fact that 24 Standing Committee sittings in the last Parliament were taken up in discussing this matter, ended only by the Dissolution of Parliament, and since there is a ready-made Bill covering these matters, why are the Government still running scared of a small element in the City of London who do not want the Government to take immediate action to outlaw this pernicious racket?

The hon. Gentleman will realise when he examines the Standing Committee reports on that Bill that it was difficult to find a precise definition of "inside information". We are seeking to resolve that difficulty, and our proposals will be brought forward in the next companies Bill.

Is not the Minister aware that the proposals on insider dealing put forward by the Labour Government met with widespread approval? May I inform him that it is the Opposition's intention to suggest the inclusion of these proposals in the current legislation in order to remedy this evil?

The difficulty relates not to the principle but to the creation of a precise and accurate definition. It is to that point that our energies are devoted.

asked the Secretary of State for Trade what proposals he has for the regulation of hotels in order to control their admission and pricing policies.

None, Sir, and I have no power to do so.

In view of my letter of complaint to the Secretary of State for Trade drawing attention to the fact that the Park Lane hotel refused admission to more than 90 customers who had made advance bookings during the week of the Scotland-England football international, and the unsatisfactory replies received from the hotel management and from the Minister, is it not time for the Government to step in to stop this kind of sharp practice—or is this yet another example of the Tory Government letting free enterprise get away almost with murder?

I would hesitate to seek powers to compel the Park Lane hotel to accept visitors from Scotland on the occasion of an international football match.

Leaving aside the Scotland-England football match, may I ask my hon. Friend whether he is aware that the powers of the tourist boards are limited in making complaints about hotels? Will he look into a case the details of which I shall be sending him, and say why there is lack of power to remedy the situation?

I shall look into the case which my hon. Friend intends to draw to my attention. If one is dissatisfied with the service in a hotel, I believe that the right course is to complain on the spot and, if necessary, to take legal action against the hotel.

Will the Minister look into the case thrown up by the activities of the Savoy hotel group, which informs wages inspectors that it is paying its workers £70 per week while telling the Department of Employment that it is paying workers £25, thereby paying national insurance contributions on the smaller sum and defrauding the taxpayer of millions of pounds?

I might look into that if it were a matter for my Department. All I can suggest to the hon. Gentleman is that he should write to the Department of Employment, in whose purview the matter lies. In the meantime, he should accept no invitations to go to the Savoy for lunch.

Is my hon. Friend aware that a large number of English people spend their holidays in Scottish hotels? If he wants to destroy the tourist industry not only in Scotland but in England, I suggest that he should seek to regulate the hotel industry. That is the last thing one would want him to do.

I could not agree more with my hon. Friend.

On the subject of price regulation, will the Minister confirm that it is Government policy on hotels, petrol and all other prices to do nothing but to leave it to the market?

Recollecting that the hon. Gentleman was a member of a Government who took powers to control prices and that he continued as a member of that Administration when they more than doubled prices, I think that he might agree that it is better to allow competition to have its effect so that we may have the benefit of the prices charged in Sainsbury rather than those charged in the Co-op.

asked the Secretary of State for Trade when next he expects to meet representatives of the British Textiles Confederation.

My right hon. Friends the Secretaries of State for Trade and for Industry and I will be meeting the representatives of the confederation very shortly.

When my hon. Friend sees the representatives of the confederation, will he seek to reassure them about the arrangements he proposes to enter into governing imports of Portuguese textiles in the event of Portugal becoming a member of the EEC?

Yes. My hon. Friend who takes a keen interest in these matters, will be pleased to know that the Portuguese authorities have affirmed their determination to stand by the quota arrangements and recognise that there is need for the careful negotiations mentioned by my hon. Friend.

asked the Secretary of State for Trade if he is satisfied with the current procedures for dealing with antidumping applications.

My hon. Friend the Minister of State and I will visit Brussels next week to discuss anti-dumping generally with the EEC Commissioner responsible, including whether present Commission procedures need improving.

Is my right hon. Friend aware that the Brussels machinery seems to be even more cumbersome and less effective than the Whitehall machinery used to be? Does he not agree that, at the least, British anti-dumping applications should be initiated by the British Government and then be pursued vigorously?

I looked to see how effective the Brussels procedures had been. In fact, since these duties rested with the Commission it has brought in 11 antidumping measures, whereas the average before the Commission took over was about seven a year. Therefore, it cannot be said that the Commission is being inactive.

Will the right hon. Gentleman consult the Commissioner particularly on the subsidised importation of capital goods where it is difficult to track down the source of subsidy? Is it not well known that wide subsidies are applied in France, Belgium, Holland and most of the EEC countries?

As the hon. Gentleman knows, the Tokyo round negotiations are drawing to a conclusion. A new countervailing code is proposed in the new GATT arrangements which will help substantially in the reduction of subsidised exports of the kind the hon. Gentleman mentions. Therefore, we must press ahead to get the new GATT arrangements implemented.

asked the Secretary of State for Trade what representations he has received from the tourist industry concerning cancelled bookings in United Kingdom holiday areas this summer; and if he will make a statement.

asked the Secretary of State for Trade what impact he expects the increase in petrol prices will have on the tourist industry.

I have received a number of complaints from tourist bodies in popular holiday areas that some people have cancelled holiday bookings because of fears about petrol shortages. I know the industry is also concerned that the petrol price increases may harm their business. However, careful driving can easily reduce fuel consumption by 10 per cent. Income tax cuts will also counter-balance higher prices—[HON. MEMBERS: "Oh."] Obviously there are some hon. Gentlemen who have not yet had their tax rebates. I do not believe that domestic tourism will suffer.

Does my hon. Friend agree that one of the main causes of holiday cancellations is a fear on the part of the holidaymaker from another part of the country that when he reaches the holiday area he will be unable to obtain enough petrol to get him back home at the end of the holiday? Will he reassure holiday makers that the petrol situation is easing considerably in the resort areas and that they will be able to obtain enough petrol and therefore need not cancel their holidays?

I agree with my hon. Friend. Perhaps the best reassurance can be given by people such as my hon. Friend who represent West Country seats. Indeed, I understand that the local press in the constituency of my right hon. Friend the Secretary of State for Trade made it plain over the weekend that there was no shortage of petrol to deter tourists from visiting the West Country.

Is the study of mathematics included in the training of airline pilots these days? We now know that the amount of income tax rebate for any taxpayer who earns less than £10,000 a year is exceeded by the increases in VAT and petrol duty imposed by the Government. How many times are we expected to spend our income tax rebates?

I think what is being tested is the credulity of hon. Members in believing the propaganda issued from Transport House rather than my mathematics.

asked the Secretary of State for Trade whether he will instruct the Civil Aviation Authority to implement the recent recommendations of the Commission of the European Communities on deregulation and the encouragement of competition in civil air transport in Western Europe.

I understand that the Commission has agreed recently that discussion should start within the Council of Ministers on Community action to encourage the development of air transport services. I shall have consultations with the Civil Aviation Authority, the airlines and other interested parties before I make my response to any proposals.

While welcoming that statement, I ask my hon. Friend to assure the House that he will consult the Secretary of State for Foreign and Commonwealth Affairs about bringing pressure to bear on the Governments that have withheld the cheap flight services that were to be initiated by British Caledonian to a number of European destinations.

Matters of agreement on fares and air services are always difficult because of the relationships between countries. As my hon. Friend knows, there have been a number of recent cases where the increase in fares has been refused on such routes. Therefore, as time goes by the fares are, in real terms, being reduced. That is a policy that will be continued where we are unable to negotiate lower fares immediately.

Will the Minister tell us whether it is the Government's intention to instruct the appropriate authorities to sell off the duty-free shops at airports?

There is no such proposal.

Will my hon. Friend undertake to ensure that the Government will give maximum encouragement to the Commission in the efforts to reduce fares? Does he agree with me that, on average, air fares between European countries are about 75 per cent. or 80 per cent. more than their United States equivalents? That is without economic justification and results more or less exclusively from the fact that European fares are still classified as international.

I note what my hon. Friend says. Fares in Europe are often high—perhaps unjustifiably so. I am aware of the Commission's proposals, and we shall consider carefully whether their adoption would bring overall benefit. Fares between countries within the Community are classified as international because that is what they are.

asked the Secretary of State for Trade what he estimates to be the total effect on the retail price index of the recent increases in VAT and minimum lending rate and the termination of the Price Commission.

I agree—for once—with previous statements made by the former Secretary of State for Prices and Consumer Protection that changes in the MLR had no direct effect on inflation. As the hon. Gentleman is aware, the Price Commission had little effect on inflation. The most generous estimate that can be made is that it restrained inflation by one-tenth of 1 per cent. on the retail price index.

Does the right hon. Lady disagree with my estimate that the rate of inflation will have doubled by January 1980 and, therefore, that she will be one of the most expensive Ministers for Consumer Affairs so far?

The hon. Gentleman has drawn attention to an important matter. The retail price index inherited by this Government was totally unrepresentative of the true rate of inflation that was in the pipeline. There were a whole raft of price increases which took place after the election but which were in the pipeline before the election. Those increases give the lie to the persistent optimistic forecast that was made by Labour Ministers about the likely course of inflation.

Has my right hon. Friend calculated how many jobs that would have been destroyed by the continuation of the Price Commission will now not be destroyed? In addition, has she calculated how many investment-creating future jobs that could not continue under the politically motivated activities of Mr. Williams and his friends will now continue?

I am reluctant to make such calculations in advance. However, my hon. Friend is right to draw attention to the fact that, undoubtedly, there will be fewer jobs lost and more investment made as a result of the policy.

What representations has the right hon. Lady made to the Chancellor of the Exchequer about the increase of the MLR to 14 per cent., the increase of VAT to 15 per cent., the increase in food prices as a result of the negotiations in Brussels and the increase in petrol prices? Does she not believe that there should be a Minister to deal with consumer protection, because the present Department is doing nothing about it?

The only representation that I have made to my right hon. and learned Friend the Chancellor was to underline his point that the effect on the retail price index of the increases in VAT in the Budget is considerably less than the effect on the RPI of the increases in the first three Budgets of the last Government. I congratulated him upon that matter as well as upon the fact that he reduced income tax by 3p in the pound while his predecessor increased direct taxation by 5p in the pound.

Is it not the case that the Price Commission had no beneficial effect on the course of inflation during the period of office of the last Government? The steps taken by the Chancellor in putting up the MLR and the other proposals have strengthened sterling to such an extent that inflation is highly unlikely to be anything like the rate that is proposed in the official and financial estimates.

My hon. Friend is right to draw attention to the pent-up inflation in the pipeline that resulted from the public sector borrowing requirement being out of control under the last Government. My right hon. and learned Friend the Chancellor had to take adequate steps to put the matter in order—otherwise inflation would have been running even higher by the end of the year.

All the authoritative sources state that inflation will be running at 20 per cent. by the end of the year. In view of the statement made by the right hon. Lady, do the Government intend to fiddle the index in order to try to make out that it is not as bad as it is?

I sympathise with the hon. Gentleman in his desire not to see over-optimistic forecasts made about inflation. There were all too many of those under the last Government, and consumers were consistently misled by them. To the second part of the hon. Gentleman's question my reply is "Certainly not".

asked the Secretary of State for Trade when next he expects to meet the EEC Trade Ministers.

My right hon. Friend attends meetings of the EEC Foreign Affairs Council when trade matters are discussed, as do his counterparts in most other member States. My right hon. Friend expects to attend the next Foreign Affairs Council on 23 July.

Will the Minister ask his right hon. Friend to discuss with the EEC Trade Ministers the likely impact of EEC trade with black Africa following the decision of the Government to deliver oil to South Africa and the likelihood of the Prime Minister lifting sanctions against Zimbabwe-Rhodesia?

I note the hon. Gentleman's remarks. It is a delicate subject and negotiations are at a delicate stage. I would rather not comment upon them at the moment.

Will the Government press for the EEC Trade Mark Office to be located in London?

Yes, Sir.

asked the Secretary of State for Trade whether he intends to deal with the position of non-voting shares in the forthcoming companies Bill.

Although the matter has received preliminary consideration, I have as yet taken no decision.

Will my hon. Friend take into account the widespread concern that is felt that something should be done about non-voting shares and the previous commitments of the Conservative Party in that respect?

I agree that the issue of non-voting equity shares can be undesirable. On the other hand, in certain circumstances they can be useful and they are acceptable to investors. I shall be glad to consider any detailed representations that my hon. Friend wishes to make on the matter.

Will my hon. Friend indicate shortly and in summary what are those circumstances?

There are such circumstances, for example, in connection with the television industry where the Home Office wishes to keep control upon the respectability of those who hold those shares. There are other practical illustrations that I should be glad to discuss with my right hon. and learned Friend.

asked the Secretary of State for Trade if he will make a statement on the open line radio channel for use by fishing vessels.

The open line scheme that came into operation on 1 April provides a radio channel on which fishing vessels beyond VHF range can report their positions to shore stations. I hope that, in the interests of safety, fishermen will make increasing use of the facility.

Does my hon. Friend agree—in the light of the tragedy of the loss of the "Carinthia" last week and the loss of no fewer than 22 lives in North-East Scotland over the past year—that more use should be made of the open line by the fishing industry. Will my hon. Friend undertake to have urgent consultations with the various fishing interests to seek to persuade them to do just that in the future?

I agree with my hon. Friend that lives could well be saved if fishermen would make more use of the facility. It is comparatively new, and I hope that they will make greater use of it in the coming winter. I shall consider what more I can do to encourage them in that direction.

asked the Secretary of State for Trade if he will investigate the existing facilities available to tourists visiting the United Kingdom for exchanging their currency into £ stering; and if he is satisfied that the proliferation of bureaux de change offer fair rates of exchange and charge reasonable rates of commission.

Bureaux de change are required by the Bank of England to effect transactions at rates of exchange in line with those of the clearing banks and to display clearly and permanently during business hours the rates of exchange offered and the commission charged. If these conditions are not met satisfactorily the bureau concerned risks losing its authorisation to operate. I believe that we should look to the forces of competition to discourage bureaux from charging too high a rate of commission. If my hon. Friend knows of any particular example of sharp practice by a bureau he may care to refer it to the Bank of England.

But my right hon. Friend must know that there are hundreds of examples of bureaux de change that are not charging commission rates in line with the banks. Will she have another look at the matter and make sure that there is proper competition and that the joint stock banks take a greater interest in providing some of that competition so that the tourist does not have to spend all his time shopping around in London trying to find a fair rate of exchange?

I shall certainly look at the matter, but I have to point out to my hon. Friend that it is entirely the responsibility of the Bank of England, which is in touch with the clearing banks concerned. I am sure that they will have noted my hon. Friend's concern.