§ 2. Mr. Strangasked the Chancellor of the Exchequer if, in view of the current rate of investment in the United Kingdom by British industrialists, he will facilitate a further increase in the investment programmes of the nationalised industries.
§ The Financial Secretary to the Treasury (Mr. Patrick Jenkin)Since my right hon. Friend's statement on 23rd November, 1212 arrangements have been agreed with the nationalised industries almost doubling the £100 million figure he then gave the House. Thus, investment projects totalling around £200 million have been brought forward to the period up to 1973–74.
§ Mr. StrangIs the Financial Secretary aware that the present level of investment in the United Kingdom is appallingly low and that the measures which have been taken to encourage private investment have been disappointingly ineffective? Does he agree that there is scope for a further increase in the investment programmes of the nationalised industries and that this would not only help to reduce the dismal rate of unemployment but could, for example, in the steel industry, make a positive contribution to our balance of payments?
§ Mr. JenkinThe hon. Gentleman is taking too little account of how much has already been done to stimulate growth and investment. I refer to £1,400 million off taxation, £110 million of post-war credits to be repaid this year, and £850 million of expenditure of one sort or another in the regions and elsewhere. This represents a formidable total.
§ Mr. ScottIs not one of the real barriers to investment the fear on the part of investors that at some time in future the Government will prefer to maintain the external parity of sterling rather than our domestic rate of growth? Will my hon. Friend make clear that this is the reverse of the truth?
§ Mr. JenkinThe point which my hon. Friend has made has already been put to my right hon. Friend the Chancellor of the Exchequer. I cannot add to anything which he has already said on this subject.
§ Mr. FernyhoughIn view of the unused resources in heavy electrical engineering and the consequent unemployment in that industry, will the Financial Secretary tell us when the Vinter Committee will report so that the industry can be given some jobs to get on with?
§ Mr. JenkinThe right hon. Gentleman's question is not for me. I should remind him that part of the measures announced by my right hon. Friend was the acceleration of the new power station 1213 at Ince, Cheshire, which will bring valuable jobs to the heavy electrical engineering industry.