§ 4. Mr. Kenneth Carlisleasked the Secretary of State for Industry if he is satisfied with the level of capital investment in the engineering industry; and whether he will make a statement.
§ The Under-Secretary of State for Industry (Mr Michael Marshall)I am not satisfied with the level of capital investment in the engineering industry. The Government's aim remains to create a climate in which productive investment can flourish, and in the first place its major task must be to bring down the rate of inflation. We must also strive to achieve a higher utilisation of existing capital investment by better management and improved labour practices.
§ Mr. CarlisleDoes my hon. Friend agree that in the past during a recession low levels of investment have meant that the engineering industry has not been able to meet demand after the recession? Does he believe that will happen now? If so, what can the Government do to prevent such an occurrence?
§ Mr. MarshallMy hon. Friend has put his finger on an important point. It is difficult to judge when an upturn will come. The climate of opinion which encourages investment is important, and it might be greatly facilitated if the Opposition took a more balanced view of these matters.
§ Mr. McNallyDoes the Minister accept that it was a major error to remove assisted area status from an engineering centre such as Stockport which, since that decision was taken, has seen unemployment double? In fact, only five engineering companies in that town are now working a full week.
§ Mr. MarshallThe Government are willing at any time to look at the criteria governing development area status. If the hon. Gentleman wishes to bring particular points to our attention, we shall look at them.