§ 14. Mr. Dykesasked the Secretary of State for Employment what studies his Department has made recently into methods whereby new public works schemes can give rise to new job creation.
§ Mr. Alan ClarkThe Government's approach to public works programmes is to consider each one on its merits in terms of rate of return to the community. It is our view that spending on Government investment schemes would be a very expensive way to create jobs.
§ Mr. DykesNevertheless, will my hon. Friend undertake to look at this again, perhaps in a joint study with the Treasury, in view of the growing evidence that there would be a very good effect on the multiplier in comparison with tax cuts?
§ Mr. ClarkI do not know what my hon. Friend means by "growing evidence". To take the construction industry, investment last year increased by 12 per cent. and output by 4.25 per cent., yet employment went down. I know that in my hon. Friend's early-day motion dated 17 December 1984 he referred to a large injection of capital being desirable, but he did not suggest where it should come from.