HC Deb 13 March 1996 vol 273 cc981-2
24. Mr. Roy Hughes

To ask the President of the Board of Trade what new measures he is taking to promote investment by British companies in domestic manufacturing industry. [18714]

Mr. Oppenheim

Low inflation, low tax rates, low interest rates and sound public finances are the best stimuli to investment. Manufacturing investment rose by more than 6 per cent. in 1994 and 1995, and the Confederation of British Industry expects a further increase of 9 per cent. this year.

Mr. Hughes

Has the Minister noticed that our major companies are investing heavily overseas but are tending to neglect the domestic market? I do not know whether incentives are necessary, but we certainly need to invest in the domestic market to increase efficiency and to create new jobs.

Mr. Oppenheim

I very much agree with the hon. Gentleman about the importance of investment. He will no doubt be pleased to know that investment rose quite sharply last year and is forecast to do the same this year. It is rising at the fastest rate since 1988. We are an international economy, and it right in an open, global market that British companies should invest at home as well as abroad.