§ 29. Mr. Biffenasked the Minister of Technology how the total of engineering orders for the last available six months compares with the corresponding figures 12 months previously; what is the expected total for the six months in prospect; and if he will make a statement.
§ The Joint Parliamentary Secretary to the Ministry of Technology (Dr. Jeremy Bray)The volume of net new orders received by the engineering industries in the six months ending January, 1967, was 4 per cent. smaller than in the same period a year earlier. Specific forecasts of the rate of new ordering are not made.
§ Mr. BiffenWould not the hon. Gentleman agree that it is very disappointing that he should have to report a declining figure, particularly as, if one goes back a further 12 months, there was also a decline for that period? Will he now recognise that it is the ability of the industry to earn and retain profits which is more likely than anything else to result in an upturn in the engineering order index?
§ Dr. BrayIt is also necessary for the industry to export, and it is pleasing to note that over the same period engineering export deliveries are up by 8 per cent. This could hardly have been achieved without an easing of the increase in the home demand.
§ Sir H. Legge-BourkeDoes not the Parliamentary Secretary recognise that, if orders do not come in, the fact that there is an increase in exports simply means that the order books are running down and that this may cause a very great crisis in the engineering industry?
§ Dr. BrayDelivery times in many parts of the engineering industry are still too close by comparison with comparable times overseas. If the temporary fall in orders results in a permanent reduction in delivery times, this will be a pure gain.