Construction Industry (Hansard, 23 June 1982)

§ 26. Mr. Roy Hughes
asked the Secretary of State for the Environment what recent representations he has had from the heads of the construction industry concerning the future prospects of the industry.

§ Mr. Stanley
My right hon. Friend and I met the Group of Eight on 15 February and we are regularly in touch with many people in the construction industry. Whilst the industry is still concerned with its work load, the measures taken by my right hon. and learned Friend in his Budget have been welcomed, and it is encouraging that so far this year there has been a rise in new house building in both the public and private sectors, in home improvement grants, and in construction new orders.

§ Mr. Hughes
When will the Government realise that the best possible stimulant for the economy is a major boost for the construction industry? Such a boost would be the means of putting the unemployed back to work. There are so many schemes—for example, road building, sewerage, railway electrification and housing—that are crying out for action. When will the order be given for the go-ahead?

§ Mr. Stanley
The hon. Gentleman should consider the announcement by my right hon. and learned Friend the Chancellor of the Exchequer in his Budget Statement and the overall provision that has been made in this financial year. I am glad to say that private housing starts for the past three months were 38 per cent. more than for the same period last year and 49 per cent. more than those for the previous three months. Total orders for new construction were 13 per cent. higher than a year ago. In the first quarter of this year the improvement grants paid were 29 per cent. up on a year ago.

§ Mr. Kaufman
Despite the cosmetic figures that the hon. Gentleman has offered the House, unemployment and bankruptcies in the building industry are at the highest levels ever recorded. As the Government were ready to respond at short notice to the Argentine crisis by spending £1 ¼ billion, will they spend £1¼ billion on constructing 50,000 houses, thereby putting 125,000 building workers to work?

§ Mr. Stanley
I am interested in the right hon. Gentleman's definition of "cosmetic". The increase in private and public sector house building starts and the increase in home improvements, as well as the general rise in new orders for total construction work, do not suggest to me that the figures are merely cosmetic. We have made a significant increase in the gross provision available for housing and we look forward to all local authorities making full use of it this year.