§ 2. Mr. William Hamiltonasked the Chancellor of the Exchequer if he will make a statement on the prospects for investment for the remainder of the current financial year.
§ The Minister of State, Treasury (Mr. Terence Higgins)The hon. Member will be aware of the forecasts for investment up to the first half of 1972 in the Financial Statement and Budget Report for 1971–72. It would be wrong to revise the Budget forecast month by month on the basis of partial indicators.
§ Mr. HamiltonIn view of the latest figures, which show a deterioration in the situation, when do the Government intend to introduce measures to induce growth in the economy? Is the hon. Gentleman aware that an increasing number of people regard the Government as an unmitigated disaster in the last 12 months?
§ Mrs. FennerWhat about the last six years?
§ Mr. HamiltonThere were 13 years before the six. When do the Government 208 intend to take steps to remedy this disastrous situation?
§ Mr. HigginsI do not accept that the present situation is disastrous. The investment position in the last quarter has certainly been disappointing. We are most certainly not complacent about it. This was clearly reflected in my right hon. Friend's Budget Statement, which provided for an expansion of output in line with productive potential. That is our intention, and we believe that the Budget contained a number of proposals for encouraging investment which will take effect.
§ Mr. TaverneDo not all the signs show that the outlook is more pessimistic after the Budget than it was before the Budget, and does not this call for a revision of the Budget judgment, which is now shown to be wrong?
§ Mr. HigginsI most certainly do not believe that is so. The Budget had a considerable effect on general expectations. The important point, which I am sure will be accepted on both sides of the House, is that these measures will take I time to become effective. Some have not yet become operative, but as they do, we shall find a general improvement in our economic life.