9. Mr. Boardmanasked the Minister of Technology what is his latest estimate of the trend of investment by manufacturing industry in 1970.
§ 22. Mr. Michael Shawasked the Minister of Technology what is his estimate of the effect of recent increases in costs on the capital investment plans of manufacturing industry.
§ 32. Mr. Kenneth Bakerasked the Minister of Technology what is his latest assessment of the increase in investment by manufacturing industry in 1970.
The Joint Parliamentary Secretary to the Ministry of Technology (Mr. Alan Williams)I would refer the hon. Members to the reply I gave to the hon. Members for Horsham (Mr. Hordern), Harwich (Mr. Ridsdale), Blackpool, South (Mr. Blaker), and Meriden (Mr. Speed) on 23rd March.—[Vol. 798, c. 952.]
Mr. BoardmanWill the hon. Gentleman bear in mind that, at constant 1963 prices, investment in 1969 was less than in 1968, which in turn was less than in 1967? Do not the indications of intentions show that this downward trend is continuing?
Mr. WilliamsThe indications from all sources are that investment is still on the increase. In relation to investment in manufacturing, at constant prices, between 1964 and 1969 the average rate of increase was about 3.7 per cent. compared with 1.9 per cent. between 1960 and 1964—virtually double the level of increase when right hon. and hon. Gentlemen opposite were in office.
§ Mr. ShawIs the hon. Gentleman aware that he did not answer my Question? Are not the Government altogether too optimistic about the investment intentions of manufacturing and service industries for 1970?
Mr. WilliamsI do not think that we are too optimistic. Both the C.B.I.'s and our own investigations have shown an increase. Any point of dispute is about the degree of that increase, and I said on the last occasion when I answered Questions on this subject that the C.B.I.'s figures do not seem to be consistent with the information already known in relation to chemicals and metals.
§ Mr. BakerDoes not the hon. Gentleman think that he is one of the last optimists in this field? Is not an average increase of 3.7 per cent. to satisfy 10 per cent. optimistic? Will he accord to the rest of British industry the privileges now being extended to the textile industry by his Department, namely, writing off capital expenditure in a period of four years? Does not he think that this would be more effective than the whole of the investment grant system?
Mr. WilliamsThe effectiveness of the system has been shown in the last year, and will be shown in the current year. As regards being optimistic in speaking of a 10 per cent. increase, I refer the hon. Gentleman to the increase which took place last year, which was of that order.
§ Mr. Ronald AtkinsWould not my hon. Friend agree that the prime responsibility for investment in private industry is by private investors, and that if British 854 investors show a lack of enterprise in this way it is they who should be criticised and not the Government?
Mr. WilliamsMy hon. Friend is correct. When investment is bad the Opposition immediately blame the Government for it. If it is good they hold it up as a tribute to the achievements of private enterprise.
§ Sir K. JosephWill the hon. Gentleman recognise that though private enterprise has a responsibility for the initiative, it is the Government who create the climate, and would he agree that the rises in interest rates under this Government have exceeded in the last four years the total of investment grants paid to manufacturing industry?
Mr. WilliamsThe right hon. Gentleman should bear in mind that when he and his hon. Friends were in office—
§ Hon. Members: Answer the question.
Mr. WilliamsI am answering it. When they were in office they set the climate of confidence. The level of increase in manufacturing investment since we have been in office has been double what it was in the period from 1960, and therefore both the confidence factor and the relevance of our measures are proven.