HC Deb 01 July 1969 vol 786 cc230-1
29. Mr. Alison

asked the Chancellor of the Exchequer if he will now take further fiscal and monetary measures to encourage reversal of the recent downward revisions of business investment expectations.

Mr. Diamond

I refer the hon. Gentleman to my right hon. Friend's speech in the debate on the Letter of Intent on 25th June. He said then that he expected a good increase in private investment during the year ahead broadly in line with that forecast at the time of the Budget.

Mr. Alison

Was either the Chief Secretary or the Chancellor expecting the downward revision in investment intentions either at the time of the Budget or when the Chief Secretary spoke in Committee on the Finance Bill at the beginning of its proceedings?

Mr. Diamond

At the time of his Budget my right hon. Friend the Chancellor took into account the variations he expected to arise from current policy changes.

Mr. Barnett

In view of the importance of manufacturing investment, if it appears to the Chancellor that because of liquidity problems there is a downturn against his forecast, would he consider at that stage possibly bringing forward payment of investment grants to help the companies that we need to help in this sphere?

Mr. Diamond

I know that my hon. Friend is concerned about this point. Indeed, we are all concerned that investment should be maintained and not drop through lack of financial resources. Both my right hon. Friend and I have made it clear that we do not see any such likelihood.

Mr. Higgins

Why apparently was the Chief Secretary unaware of the Board of Trade's published survey on this subject when he took part in the debates in Standing Committee on the Finance Bill?

Mr. Diamond

I was not unaware of the figures underlying both the Board of Trade figures and other figures which we have published.