HC Deb 18 June 1979 vol 968 cc906-7
18. Mr. Rooker

asked the Secretary of State for Industry if he is satisfied that industry has sufficient incentives to expand production.

The Under-Secretary of State for Industry (Mr. David Mitchell)

The expectation of profits is the only real incentive to increased production, and it is the aim of our policies to create a favourable climate for profitability and growth.

Mr. Rooker

Yes, but if that climate includes a Treasury forecast that manufacturing production will decrease by 2½ per cent. with a 14 per cent. minimum lending rate, how can that reply be of any help to those running businesses, particularly small businesses, for which the hon. Gentleman is responsible?

Mr. Mitchell

The hon. Gentleman has recited the consequences of the situation that we inherited from the previous Government—

Mr. Rooker

It was the hon. Gentleman's Government's Budget.

Mr. Mitchell

—and the Budget is the first step to putting that situation right.

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