§ 15. Mr. Blakerasked the Minister of Public Building and Works what estimate he has made of the likely rise in building and construction costs during 1968 as a result of recent Government decisions; and whether he will make a statement.
§ Mr. MellishI estimated in November, 1967, that the direct effects of devaluation would be to increase construction costs—including repair and maintenance—by a little more than 1 per cent. When the other measures, which were part of the devaluation package, are taken into account the increase in new construction costs is expected to be about 2 per cent. during this year.
The construction industry has continually improved its efficiency and I am confident that it will be able to absorb at any rate part of the increase.
§ Mr. BlakerIs not the Minister aware that it is not only devaluation and directly connected measures which are increasing costs, but that the industry estimates that British Standard Time will increase costs considerably? Can he give an estimate of the effect on costs of British Standard Time?
§ Mr. MellishI cannot give the hon. Member any estimates about the effect of British Standard Time. There is another Question on this matter on the Order Paper. This is a very good industry. It is quite capable of absorbing many of these increases through increased output. Let us give it credit for having done that in the past. I am sure that it will do it in the future, too.