HC Deb 02 April 1968 vol 762 c162
25. Mr. Grant

asked the Chancellor of the Exchequer what has been the percentage increase at constant prices between 1964 and 1967 in the gross domestic product, consumers' expenditure, public authorities' current expenditure on goods and services, private investment, and public authorities' investment including the nationalised industries, respectively.

Mr. Diamond

The percentage increases at constant prices between 1964 and 1967 are as follows:

Gross domestic product
Consumers' expenditure
Public authorities' current expenditure on goods and services 12
Fixed capital formation:
Private sector -1
Public sector 26

Mr. Grant

Do not these figures show a most depressing contrast with the growth rate figures of 1958 to 1964? Do they not also illustrate that public expenditure has got completely out of hand at the expense of private investment, on which our future depends?

Mr. Diamond

They show no such thing. When private investment is falling, it is essential for the Government—and this policy has been accepted by all parties—to fill the gap and increase public expenditure.

Sir J. Langford-Holt

Does that mean that, as private investment increases, Government investment will fall?

Mr. Diamond

That does not necessarily follow.

Mr. Body

Does not the right hon. Gentleman recognise that he has given the real reason why there is roaring inflation?

Mr. Diamond

That supplementary question has nothing to do with the Question on the Order Paper.