HC Deb 14 November 1968 vol 773 cc588-9
5. Mr. Ridsdale

asked the Secretary of State for Economic Affairs what proportion of the gross national product has been invested in manufacturing industry in the last five years; and, from figures available to him from international sources, how this investment compares to that of West Germany and Japan.

The Under-Secretary of State for Economic Affairs (Mr. Alan Williams)

As the answer to this Question is rather long and contains a number of statistics, I will circulate it in the OFFICIAL REPORT.

Mr. Ridsdale

Is the Parliamentary Secretary frightened to tell the House that investment in Japanese manufacturing industry in the last five years was almost double what it was in this country? Is it not evident that until this Government stop making vicious attacks on savings and encourage capital and personal savings we shall not be able to match this in any way whatever?

Mr. Williams

I am not afraid to tell the House this at all, but the hon. Member should remember that during the period when his party were in office Germany and Japan, even then, consistently devoted more to investment than

In the years 1963–67 manufacturing investment in the U.K. was on average 3.7 per cent. of Gross National Product, both measured at current market prices (measured at 1958 prices the percentage was 3.8).
Comparable figures are not available for West Germany and Japan. The latest available five year average for investment in manufacturing and construction as a percentage of Gross National Product, and also of manufacturing and construction output, which forms a different proportion of Gross National Product in each country, are shown in the table below.
Manufacturing and Construction Investment as a percentage of
G.N.P. at Market Prices (Annual average over 5 year period) Manufacturing and Construction's Contribution to G.N.P. at Factor Cost (Per cent, over 5 year period) Manufacturing and Construction Investment (Annual average over 5 year period) at Market Prices G.N.P at Current Prices Manufacturing and Construction Output at Factor Cost
U.K. (Millions of Pounds Sterling) (1962–66) 33,209 41.0 1,378 4.2 11.5
Japan (Billions of Yen) (1961–65) 24,234 31.5 2,343 9.7 33.8
West Germany (Billions of DM) (1962–66) 415.16 48.5* 28.5 6.9 14.2*
* Manufacturing and Construction output in West Germany is available only at market prices. In the West German economy as a whole output at market prices was 13.4 per cent. greater than output measured at factor cost over the 5 year period.

(Sources: National Accounts of O.E.C.D. Countries 1957–66. Paris, April, 1968)