§ 16. Mr. Arnoldasked the Secretary of State for Industry whether he is satisfied with the prospects for manufacturing industry in the light of the recent CBI forecast.
§ 29. Mr. Tim Rentonasked the Secretary of State for Industry whether, in view of the Confederation of British Industry's most recent forecasts, he is satisfied with the prospects for United Kingdom manufacturing industry.
Mr. Alan WilliamsI am satisfied that manufacturing industry has good prospects of achieving a sustained and soundly based expansion. In this context, my right hon. Friend has by Written Answer to a Question by my hon. Friend the Member for Kingston upon Hull, West (Mr. Johnson) given details today of a new product and process development scheme for which £20 million has been initially allocated. The Government also propose to allocate additional sums of £40 million for the ferrous foundry industry scheme and £10 million for the machine tool industry scheme.
§ Mr. ArnoldIs it not the case that both employment and investment in manufacturing industry continue to show a long-term decline? How can this situation be rectified until a greater share of GNP goes to profits, not just over one year but over a succeeding number of years?
Mr. WilliamsAs I have indicated before, it is strange that Conservative Members profess to be the people who understand investment since they never managed to attain the level of investment that we attained in our last year in office. Contrary to what the hon. Gentleman is saying, the forecasts both from the CBI and from our own surveys are of a very substantial increase in investment in the next 12 months and that possibly for the first time investment will reach the 1970 level yet again during 1978.
§ Mr. RentonWill the Minister pause for a moment and say whether it is really part of Government industrial strategy that private manufacturing investment in this country is likely to increase at a time when profits are still being held down by legislation but wage costs are not? Is that part of the Government's industrial strategy or, like the social contract, is that strategy about to be blown apart by a wage explosion?
Mr. WilliamsAgain, I would draw the hon. Gentleman's attention to his rather short memory. It was we who relaxed the controls on prices to enable investment to be taken into account in the pricing policy of firms. I would further draw his attention to the fact that, although Conservative Members vote 1138 against measures under Section 8 of the Industry Act, as a result of the use of those measures we have generated £640 million worth of investment under the accelerated projects scheme, £160 million already under the ferrous foundry scheme and £45 million under the machine tool scheme. We seem to understand a little more about industry than do Conservative Members.
§ Mr. John GarrettIs my hon. Friend aware that the fastest declining sector of British manufacturing industry is the footwear industry, where many thousands of jobs hang upon his Department's decision about whether or not to give it funds that were proposed under the scheme of assistance?
Mr. WilliamsIndeed. I am in the middle of a period of consultation with the relevant unions. I am having the final consultations with them this week on the possible implementation of the footwear study report. I can assure my hon. Friend, and many other hon. Gentleman who have an interest in this industry, that the Government are determined to retain a viable industry.
§ Mr. BiffenSo that the House may appreciate the reality of the participation by the CBI in the Government's industrial strategy, may I ask the Minister to indicate whether he has had any view whatever from the CBI on the investment represented by the Drax B power station?
Mr. WilliamsI cannot indicate that on this Question. The hon. Gentleman will have a chance to raise that matter on the statement that is to be made later. I would say that at least the CBI takes a slightly more positive view towards Government policy than do Conservative Members.