§ Q3. Sir C. Osborneasked the Prime Minister when he expects his forecast of a 4 per cent. annual increase in industrial production to be reached, and since it is still below the July, 1966, level, what new action he proposes to take.
§ The Prime MinisterThe hon. Member is mistaken in his premise since both in December and January the seasonally adjusted index of industrial production was above the July, 1966, level, and as I have previously told the House the manufacturing component of that index rose by 2.9 per cent. in the three months November, 1967, to January, 1968, compared with the three preceding months. As to the prospects for total output in 1968–69 I would refer the hon. Member to the Budget Statement by my right hon. Friend the Chancellor of the Exchequer.
§ Sir C. OsborneAs the industrial index is still 137 compared with 135 in the crisis year of 1966, that is not a 4 per cent. increase per annum. If the Chancellor's policy is to take £500 million worth of goods from the consumers of this country, will not that reduce industrial production, since the Chancellor cannot compel the foreigner to buy those goods?
§ The Prime MinisterOn the first part of that question, as we have repeatedly said, and as my right hon. Friend said, the rate of increase was extremely slow for a continued period, for the reason mentioned by the hon. Member, but it has started to pick up rather quickly and I have quoted the figure for manufacturing industry. On the point about the Budget, it was very fully debated in this House for several days and my right hon. Friend gave his estimate. He said that to the extent that exports rise, to the extent that they may be expected to rise or opportunities were taken by manufacturers, of course production could rise still further.