HC Deb 26 January 1976 vol 904 cc19-20
12. Mr. Lane

asked the Secretary of State for Industry what is his current assessment of business confidence in the private sector.

Mr. Varley

There are several indications that confidence is strengthening in the private sector of industry.

Mr. Lane

But is it not obvious on any honest assessment that confidence in the private sector is still lamentably low? Will the Secretary of State urge the Chancellor that companies in the private sector, particularly small businesses, should be strong candidates for any tax concessions in the forthcoming Budget?

Mr. Varley

I know that the hon. Member will not expect me to say anything about the Budget judgment, which is not my responsibility in any case, but there are indications that confidence is improving. The Financial Times Survey of Business Opinion published on 5th January and the CBI Monthly Trends Survey published in December are examples.

Mr. Richard Wainwright

Is the Secretary of State aware that the recovery of confidence in many industrial sectors is being handicapped by the form of the Price Code and the way in which his colleague is applying it? Will he make representations on behalf of industry to the right hon. Lady the Secretary of State for Prices and Consumer Protection?

Mr. Varley

I am sure that my right hon. Friend the Secretary of State for Prices and Consumer Protection will take note of what the hon. Gentleman has said.

Mr. James Lamond

Is my right hon. Friend aware that there is some sign of a slight upturn in trade in the textile industry, which is very much to be welcomed? Will he take the opportunity afforded by this upturn to have talks with his right hon. Friends about how best to protect the textile industry—without necessarily giving it financial assistance— so that when the next trough arrives the industry will not be in the position in which it found itself some three months ago?

Mr. Varley

My hon. Friend is right to express the concern within the textile industry. I have met leaders of the industry on two occasions in the last six months, and they have expressed their concern to me directly. It is a very important industry, employing about 900,000 people. I shall do everything I can to strengthen its position along the lines mentioned by my hon. Friend.

Mr. Heseltine

Does not the Secretary of State realise that he and his predecessor have for two years been promising that tomorrow will be better for British industry? Are not the most meaningful statistics those issued by his own Department, showing that industrial investment this year is likely to reach levels not seen in this country since the early 1960s?

Mr. Varley

We shall do all we can to improve upon the encouragement that we are giving. I hope very shortly to be able to give the House some information about the accelerated investment scheme being developed within the Department, and some further information about industry schemes. But the best incentive and the best boost to confidence within British industry will come when there is realistic and substantial proof of the effectiveness of the counter-inflation policy. I was interested to see only the other day a letter from the Selsdon Group pointing out that much of the inflation resulted from the policies of the previous Conservative Government.