Construction Industry (Hansard, 5 February 1968)

§ 22 and 23. Mr. Eyre
asked the Minister of Public Building and Works (1) what he estimates will be the effect upon the construction industry of the measures announced in Command Paper No. 3515;

§ 21. Mr. Kitson
asked the Minister of Public Building and Works what estimate he has formed of the impact upon the construction industry of Government measures introduced in the current Session.

§ Mr. Mellish
As I said when I met representatives of the industry on the 16 16th January, I estimate that the total output of new work in 1968 will still be at least 3 per cent. above that in 1967.

§ Mr. Eyre
Is the Minister aware that he is confirming the final abandonment of the building targets under the National Plan and also the abandonment of the Prime Minister's solemn pledge about 500,000 new houses in 1970? Would he say whether the industry can expect adjusted targets and adjusted pledges?

§ Mr. Mellish
I can only say that the hon. Gentleman is far more pessimistic than the representatives of the building industry. I have already met them. The actual estimated output of new work just after devaluation, we thought, would be about 5.5 per cent. But instead, since the announcement was made by the Prime Minister and the Chancellor, we now estimate that this year there will be a 3 per cent. increase—and I am talking of volume at constant prices—over last year. The industry understands this, and the reasons for it. I have been promised its good will and co-operation.

§ Mr. Chichester-Clark
Can the Minister assure me that the appearance of his name on the back of the Industrial Expansion Bill is a pure formality and that it is not there because he intends to meddle with the industry?

§ Mr. Mellish
My name is on the Bill and it is no formality. I have been asked questions on this by the industry and I have assured it that, whatever I did on this or any other Bill. I would certainly consult it before I did it.

§ 30. Mr. Urwin
asked the Minister of Public Building and Works what representations he has received from the construction industry following devaluation and the announcement of curtailment of public expenditure; and what action he has taken.

§ Mr. Mellish
Immediately following the statement by my right hon. Friend the Prime Minister on 16th January, I saw representatives of the construction industry.
I told them the effect of the reductions in planned public expenditure, and received assurances that the industry would co-operate in the new situation.
I have also urged the industry to seek every opportunity to increase its earnings 17 overseas, and I have met with a very encouraging response.

§ Mr. Urwin
I congratulate my right hon. Friend on the speed with which he acted in this very important matter. Assuming that this was a somewhat wide-ranging discussion, was any reference made to increasing emphasis being placed on the use of indigenous materials in the industry, with specific emphasis on brick and stone?

§ Mr. Mellish
Yes. The industry, I know, is willing and anxious to do all it can in the matters to which my hon. Friend has referred. I should like to pay public tribute to the industry. It has a bad image with the public in many respects because of the odd individual firm which misbehaves, but it must never be forgotten that year after year the output in this industry has been rising, on average, between 3 and 4 per cent. It is doing a first-class job and I intend to encourage it.

§ Mr. G. Campbell
How can these reductions be reconciled with the Prime Minister's broadcast on 19th November, in which he said that the house building programme would be safeguarded in the measures accompanying devaluation?

§ Mr. Mellish
I know something about the housing programme, as the hon. Gentleman will be aware. At least half the housing programme is within the private sector over which the Government cannot have any control as far as numbers are concerned. The number of houses completed by the public authorities is the greatest ever known in the history of Britain.