HC Deb 15 July 1958 vol 591 cc987-8
19. Mr. Roy Jenkins

asked the Chancellor of the Exchequer when he proposes to lift the ceiling on the investment programme of nationalised industries.

Mr. Amory

I cannot usefully add anything to the answer which I gave on this subject to the right hon. Gentleman the Member for Huyton (Mr. H. Wilson) after my statement on 3rd July.

Mr. Jenkins

But if, as it is clear, the right hon. Gentleman takes the view that it is more desirable to stimulate investment in the private sector than it was at the time of his Budget, why does not he think there should not also be an upward adjustment in the public sector?

Mr. Amory

The public sector, of course, is completely under our control, and the private investment sector is not. It must be remembered that as far as public investment goes the investment level is an all-time record, and within that total the proportion of the nationalised industries has steadily increased. But I am keeping my eye on the whole situation. The action which I took in relation to private investment was in the light of the fact that there were some signs that private investment was dropping off.

Viscount Hinchingbrooke

Is my right hon. Friend aware that large numbers of people in this country consider that further reliefs in the private sector should go much further in the direction possibly of reduction of taxation and the restitution of post-war credits before anything more is done in the public sector?

Mr. Amory

I will bear in mind what my noble Friend has said.

Mr. Jay

When the right hon. Gentleman has made these sweeping relaxations of credit in the private sector, how can he possibly justify keeping restrictions on the public sector at the extreme level of last September, particularly in view of the amount of steel-producing capacity which is unemployed in this country at the present time?

Mr. Amory

For the reasons which I have given.

Mr. Jenkins

Do I understand from the Chancellor's sympathetic reply to the noble Lord the Member for Dorset, South (Viscount Hinchingbrooke) that he will be more anxious to encourage expenditure on consumption than on investment in nationalised industry?

Mr. Amory

Very much to the contrary. I think that I have made it clear that my priority at present is to encourage exports and investment.