§ 23. Mr. Tom Boardmanasked the Secretary of State for Economic Affairs why "The Task Ahead", uses a different definition in Table 6.1 for the claims on resources for achieving the balance of payments target from the definition used in the comparable Table 1.1 of the National Plan; and if he will give comparable figures on both bases together with the actual change between 1964 and 1967.
Mr. Alan WilliamsThe actual changes between 1964 and 1967, on both bases, are set out in a table to be circulated in the Official Report. It was decided to reduce the sub-divisions of
| USE OF RESOURCES (£ MILLION) | |||||
| National Plan Basis (a) (constant 1964 prices) | Economic Assessment Basis (constant 1967 prices) | ||||
| 1964 | 1967 | 1964 | 1967 | ||
| GNP at market prices | 33,258 | 35,225 | GDP at market prices | 36,861 | 39,093 |
| Balance of trade in goods and services including net property income from abroad. | −213 | −310 | Net property income from abroad. | 431 | 410 |
| Balance of trade in goods and services (b). | −500 | −568 | |||
| Investment: | Investment: | ||||
| Manufacturing and construction | 1,346 | 1,436 | Private industry and services | 2,898 | 3,056 |
| Other private industry and services | 1,349 | 1408 | |||
| Nationalised industries | 1,145 | 1,379 | Nationalised industries | 1,271 | 1,530 |
| Stockbuilding | 639 | 114 | Stockbuilding | 726 | 130 |
| Housing | 1,210 | 1,326 | Housing | 1,336 | 1,464 |
| Roads | 190 | 245 | Public services | 813 | 1,033 |
| Other public services | 561 | 708 | |||
| Transfer costs of land and buildings | 59 | 61 | Transfer costs of land and buildings. | 60 | 62 |
| Defence | 1,925 | 2,030 | Defence | 2,197 | 2,317 |
| Consumption: | Consumption: | ||||
| Social and other public services | 3,470 | 4,048 | Social and other public services. | 4,068 | 4,746 |
| Personal | 21,577 | 22,854 | Personal | 23,908 | 25,323 |
| (a) 1964 figures revised in conformity with National Income and Expenditure: 1968 Blue Book, | |||||
| (b) Excluding net property income from abroad. |
§ 24. Mr. Tom Boardmanasked the Secretary of State for Economic Affairs in view of the fact that the period 1967 to 1972 covers three phases for the pattern of the use of resources in relation to the 1782 investment in table 6.1 to avoid unnecessary detail and to give more scope for variation in the light of the consultations with industry and, for these reasons, projections to 1972 on the National Plan basis are not given. The exclusion of investment income from the balance of trade in goods and services arises from the use of G.D.P. instead of G.N.P. as a measure of national output.
§ Mr. BoardmanDo not these figures show that, if like were compared with like, the task of improving the balance of payments is very much greater now than in 1964? Is this not a damning indictment of the Government's economic policy?
Mr. WilliamsNo, Sir. If like were compared with like, in 1964 we inherited a ramshackle economy with out-of-date industry. We now have a better industrial base on which to found our expansion, and devaluation has given us a competitive edge abroad.
§ Following is the Table:
§ period averages in Table 6.1 of "The Task Ahead," if he will sub-divide these projections to show the actual changes between 1967 and the latest available figures, the projected changes between 1783 then and 1970, and the changes between 1970 and 1972.
Mr. Alan WilliamsNo, Sir. "The Task Ahead" is concerned with the changes that have to take place in the use of resources between now and 1972, but it does not attempt to predict the precise timing of their achievement. This will depend in large measure on the success by all concerned in improving the balance of payments.
§ Mr. BoardmanDoes not the presentation confuse past performance with present plans and future forecasts, and is not this designed to conceal the true size of the problem?