HC Deb 09 December 1982 vol 33 cc963-4
3. Mr. Stan Thorne

asked the Chancellor of the Exchequer when he expects his economic policies to result in increased industrial activity.

Mr. Hayhoe

Manufacturing output has declined slightly this year, but the Industry Act forecast projected an increase of 1 per cent. in 1983. The prospects for activity will be enhanced the more successful we are in improving competitiveness.

Mr. Thorne

How does the Minister expect that reply to be credible when production has fallen by 15 per cent. in the past four years? What action are the Government taking that is likely to create an upturn?

Mr. Hayhoe

My reply is credible because it is true. We must continue to improve competitiveness so that we can sell more of our goods and services both at home and abroad. In that way, we shall improve output and job prospects.

Mr. McCrindle

When the Government consider ways in which to stimulate economic activity, will they weigh carefully the respective benefits of a reduction in personal taxation, which may lead to no more than the purchase of imported goods, and of more direct stimulation such areas of activity as the construction industry?

Mr. Hayhoe

I am sure that my right hon. and learned Friend the Chancellor will bear those very sensible considerations in mind in preparing his next Budget.

Dr. Bray

As the forecast that the Minister quoted was published before the recent fall in sterling and the Chief Secretary has just claimed that there has been an improvement in competitiveness as a result, will the recent fall in sterling improve the prospects for manufacturing output next year?

Mr. Hayhoe

Having considered all the factors, we would not wish to resile from the forecasts in the autumn statement. As I believe the hon. Gentleman fully understands, all these matters will be taken into account when the next Treasury forecast is made at about the time of the next Budget.