HC Deb 29 November 1966 vol 737 cc192-3
14. Mr. Ridley

asked the Chancellor of the Exchequer what consultations he has had with industry and what steps he now intends to take to stimulate investment.

Mr. Callaghan

The Government continue to be in close touch with representatives of industry through formal and informal channels. A statement about bank credit was made on 1st November advising industry that credit is available for export requirements and productive investment. As for the last part of the Question I would refer the hon. Gentleman to my answer on 25th October to the hon. Member for Worcestershire, South (Sir G. Nabarro).—[Vol. 734, c. 815–17.]

Mr. Ridley

Is the right hon. Gentleman aware that investment will drop very seriously next year unless he takes action? Is he further aware that the running attacks on profits, dividends, and unearned income, which the Government have made have caused this situation, and that it is necessary for the Government completely to change their policy so that they once more encourage people to save and to invest?

Mr. Callaghan

That seems to be a preamble to a speech which the hon. Gentleman will no doubt hope to make tomorrow or the next day. I can only say that if he takes the total level of investment, private and public, I very much doubt whether there will be a decline next year. Public investment is of great importance in this regard, certainly in its economic aspects, but I am continuing to examine this matter, and I hope to have more to say about it in the course of the debate if I catch your eye, Mr. Speaker.

Sir G. Nabarro

Has the right hon. Gentleman perceived that the Prime Minister last night at Grosvenor House issued a series of exhortations to industry for further private investment? Will he point out to the Prime Minister that it is of little value for private investors to buy equities if they are to be sequestrated shortly afterwards by iron and steel arrangements, or other nationalisation Statutes? Is not this an invitation to private investors to lose their money?

Mr. Callaghan

My reading of the situation recently has been that a great many investors seem to have been wanting to get out of equities into gilt-edged, so I doubt whether the steel stock will have any adverse effect on them.

As regards the general position, my right hon. Friend the Prime Minister relied not only on exhortations. Yesterday the President of the Board of Trade issued detailed information about the way in which manufacturers can get cash grants, money in the pocket, 20 per cent. or 40 per cent. of their expenditure.

Mr. Ridley

In view of the unsatisfactory nature of that reply, I beg leave to raise the matter on the Adjournment at the earliest possible opportunity.