§ 13. Mr. Viggersasked the Secretary of State for Industry if he is satisfied with the current rate of profitability of industrial companies.
The Minister of State, Department of Industry (Mr. Alan Williams)No. but I expect a substantial improvement as exports and output grow.
§ Mr. ViggersIs the hon. Gentleman aware that inflation has distorted the profit figures of British companies and that proper inflation accounting will show that many sectors contain what can only be described as "convalescent ducks"? Will he and his colleagues divert the money and the energy that they are giving at the moment to the so-called regeneration of British industry and work instead with the Chancellor to create a climate in which British companies can be profitable and thus allow reinvestment to take place?
Mr. WilliamsThat question shows how utterly out of touch with the realities of the industrial situation the Opposition are. The industrial regeneration policy is welcomed by industry. It is needed by industry. Such things as the accelerated projects scheme and industry schemes are helping industry to modernise and become more profitable. I wish that the Opposition would find out what is going on.
§ Mr. CanavanDoes my hon. Friend agree that it is of the utmost importance that the profitability of industry is used for the good of the whole community? Does he further agree that the best way of doing this is by extending public ownership, and not reducing it? In view of this will he ask his right hon. Friends the Secretary of State for Energy and the 17 Prime Minister to deny categorically rumours, which are causing grave concern, to the effect that the Government are on the point of surrendering their public shares in British Petroleum just because of the demands of the vultures in the IMF?
Mr. WilliamsI shall draw the comments of my hon. Friend to the attention of my right hon. Friends. We need profitable private and public sectors in industry, both viable and able to stand on their own feet.