HC Deb 10 November 1969 vol 791 cc14-6
16. Mr. Biffen

asked the Minister of Technology what is the expected change in the level of industrial investment during the prospective year in manufacturing industry and distributive trades, respectively; and if such changes are consistent with the Government's policy of restructuring the economy.

22. Mr. Sheldon

asked the Minister of Technology what estimate he has made of the level of manufacturing investment in 1969 and 1970.

Mr. Alan Williams

The information was given in the latest Investment Intentions Inquiry published on Monday, 20th October. The high level of investment in 1970 forecast by manufacturers and others is welcomed by the Government. The pace and direction of restructuring the economy are not exclusively dependent upon levels of industrial investment, but the expected levels of investment are not inconsistent with Government policies, given other claims, particularly those of exports, upon resources.

Mr. Biffen

Is it the view of the hon. Gentleman that there is a correlation between the quantity of manufacturing investment and the size of the investment grant? As the sums involved are so gigantic, can he elaborate to the House what that correlation is?

Mr. Williams

I think that the House will recognise that that is the sort of question of which one would need a certain amount of notice.

Mr. Sheldon

May I ask a more practical question? In order to attempt to improve the investment prospects for early next year. will my hon. Friend have an investigation into shortening the repayment period of the investment grant?

Mr. Williams

The Government have already twice shortened the repayment period. I cannot give any commitment beyond that.

Mr. David Howell

Does the hon. Gentleman recall that on 4th February, this year, the President of the Board of Trade announced a study into the effect of investment grants on investments? Is that now the responsibility of some part of the hon. Gentleman's Department? If it is, will he say when the results of the study will be published?

Mr. Williams

It is the responsibility of the enlarged Department. The results will be published as soon as they are in a satisfactory form.

Sir K. Joseph

In the light of the Minister's reference to the necessity for consistency between investments and exports, do the Government really want a further rise in investment?

Mr. Williams

I do not quite see the point of that question.

Sir K. Joseph

May I put my Question in another way? If, as the Minister implies, a further rise in investment may clash with a rise in exports, and if the Government have not created room for both, do the Government really want a further rise in investment?

Mr. Williams

It is a matter of the quality and quantity of investment. Quality has to be taken into account as well. We are trying to get a better quality of investment which will give us the balance of payments result we require.