§ 6. Mr. Patrick Jenkinasked the President of the Board of Trade whether he is satisfied with the anticipated level of investment in manufacturing industry; and what steps he is contemplating to effect an improvement.
§ Mr. JayThe results of my Department's latest inquiry into industry's investment intention will be available next 531 week. My impression is that the measures that the Government have already taken are having a favourable effect on investment plans. The further acceleration in payment of investment grants announced this morning will be an additional stimulus.
§ Mr. Patrick JenkinDoes not the President of the Board of Trade recognise that we are in a very serious situation with regard to the level of manufacturing investment? There appears to be no evidence as yet from any other source—we shall await his Department's report next week with great interest—that the level of investment is doing other than continuing the decline which has been reported over recent months. Does not he recognise that the implications of this for the long-term future of the country's economy are very serious indeed?
§ Mr. JayYes, but the hon. Gentleman should not denigrate his own country too much. The information at present available on investment in the early part of this year shows that the fall is a good deal less than some of the forecasts which have been made.
§ Sir G. NabarroIs not manufacturing investment in the private sector running at 15 per cent. to 20 per cent. lower than last year? Should not these figures give cause for grave anxiety?
§ Mr. JayNo, Sir; this is a considerable exaggeration. [HON. MEMBERS: "Wrong again."] I am sure that the hon. Baronet will be glad—
§ Sir G. NabarroI am not a baronet. Wrong again.
§ Mr. JayI always live in hope as far as the hon. Gentleman is concerned. I assure him, as I am sure he will be glad to know, that the increase in public investment is making up for many of the shortcomings of private investment.