HC Deb 29 April 1970 vol 800 cc1226-7
8. Mr. Michael Shaw

asked the President of the Board of Trade if he will state the annual average increase in the fixed capital expenditure, at 1963 prices, of the distributive and service industries between 1960 and 1964 and 1965 and 1969, respectively.

11. Mr. Speed

asked the President of the Board of Trade what was the annual average increase in the fixed capital expenditure of the distributive and service industries, at 1963 prices, from the beginning of 1966 to the latest convenient date.

Mr. Mason

The annual rate of increase for these industries (excluding shipping) was 9 per cent. between 1960 and 1964, 4 per cent. between 1965 and 1969, and, on the basis of seasonally adjusted figures, 6 per cent. between the first quarter of 1966 and the fourth quarter of 1969.

Mr. Shaw

Does the right hon. Gentleman accept that in terms of cash and of percentages there is clearly shown to be a substantial slowing in the rate of progress in these capital developments?

Mr. Mason

I am not convinced that that is right. The underlying trend of investment in these industries has been strongly upward over the past 10 years. As the hon. Gentleman must know if he has followed the figures closely, there was a dip in 1965–66, a picking up in 1967, a strong surge forward in 1968, and the improvement is still going on.

Mr. Speed

Is it not odd that investment in the distributive and service industries is higher than it is in manufacturing industry, which attracts investment grants? Does this not call in doubt the whole philosophy of investment grants?

Mr. Mason

No. My right hon. Friend the Minister of Technology answered that question the other day because he deals with manufacturing investment. Investment in the distributive and service trades is higher than it is in manufacturing, but it is ridiculous to make comparisons. The total volume of investment in the five years 1965–69 was 28 per cent. above what it was in the previous five years.

Sir K. Joseph

If there is no reason for disquiet about the effectiveness of taxpayers' money spent on the so-called encouragement of manufacturing investment, why are the Government instituting an inquiry?

Mr. Mason

I thought that my right hon. Friend the Minister of Technology answered that question, too. Manufacturing investment is my right hon. Friend's responsibility. His Ministry is determining the terms of reference of the inquiry.