HC Deb 03 March 1994 vol 238 cc1066-7
13. Mr. Nigel Jones

To ask the Chancellor of the Exchequer what advice he has received on the levels of investment in education, research and development and transport required to sustain economic growth in the longer term.

Mr. Portillo

A great deal of advice.

Mr. Jones

As we find ourselves near the bottom of the Organisation for Economic Co-operation and Development league for investment in infrastructure and education, what evidence can the Minister give that the Government are prepared to invest in areas that will secure Britain's economic future, rather than concentrate on pre-election tax bribes?

Mr. Portillo

Over the next three years, we will spend, on average, nearly £2 billion on trunk roads and motorways. Over the same period, our total railway investment will be around £3 billion. The hon. Gentleman is quite wrong to say that we are at the bottom of the OECD league. Let me remind him that, as a share of our gross domestic product, the United Kingdom spends more on education than either Germany or Japan.

Mr. Fabricant

Is it not the case that, by having the lowest corporation tax in Europe, firms have the necessary flow of funds to enable them to invest? Is it not also the case that, by not having a punitive taxation system, we do not suffer the brain drain that we had in the 1970s?

Mr. Portillo

My hon. Friend is right to draw attention to the fact that what matters is not only public sector investment but private sector investment. That is one of the reasons why the Government are concentrating so hard on the private finance initiative, which enables private finance and private expertise to be brought into areas that previously were the preserve of the public sector.