HC Deb 08 December 1977 vol 940 c1622
3. Mr. Radice

asked the Chancellor of the Exchequer whether he is satisfied with the level of industrial investment.

Mr. Joel Barnett

No, Sir. But I am encouraged by the recently published figures for investment in the third quarter, which show a significant improvement over the earlier part of the year.

Mr. Radice

Will my right hon. Friend confirm that for the first nine months of this year, if we exclude the British Steel Corporation, investment in manufacturing industry, was 13 per cent. up on the first nine months of last year, and that this is a fairly satisfactory figure?

Mr. Barnett

My hon. Friend is right. Indeed, the figure is slightly higher than he quoted, although one is bound to note that investment levels of manufacturing industry are still low. We want to see them improving rapidly in the years ahead.

Mr. Budgen

Will the Chief Secretary confirm that the little NEDCs play a vital rôle in the Government's industrial strategy? Further, will he comment on the effect upon foreign investment in general in this country of the successful conspiracy in which two little NEDCs joined to keep Hitachi out of Britain?

Mr. Barnett

That is an entirely different question, but the little NEDCs are doing a first-class job.

Mr. Madden

Has my right hon. Friend seen an unpublished survey, prepared by the Manpower Services Commission, which indicates that over the next few years the top 90 companies in Britain expect their labour requirements to fall by one-third as a result of investment?

Mr. Barnett

There is the problem, of course, that much new manufacturing investment does not create additional employment. On the other hand, my hon. Friend must recognise that without that new industrial investment existing employment would be difficult to maintain.