PUBLIC SECTOR INVESTMENT (Hansard, 8 March 1978)

§ Viscount SIMON
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
783 The Question was as follows:
To ask Her Majesty's Government whether the statement made by the Baroness Birk in this House on 8th February (Hansard, col. 1108) that "there is no question of public sector investment replacing investment in private industry" means that no further proposals for nationalisation will be coming forward.

§ The PARLIAMENTARY UNDERSECRETARY of STATE, DEPARTMENT of the ENVIRONMENT (Baroness Birk)
My Lords, this extract from my wind-up speech quoted by the noble Viscount was intended simply to reassure the House that the Government's plans for public sector investment—for example, through the National Enterprise Board—would not make it difficult for private industry to secure external funds for its own investment programmes.

§ Viscount SIMON
My Lords, I am much obliged to the noble Baroness for that reply. However, it still leaves me a little in the dark. I wonder whether she could explain to the House what type of action the Government are now saying they would not take which could result in public investment taking the place of private investment?

§ Baroness BIRK
My Lords, I do not think I can say what action the Government would not take which could result in something happening which was quite different from what the noble Viscount and I have been speaking about. I have said what action the Government would take. I cannot answer a question as to what action the Government would not take. This is tantamount to asking how long is a piece of string.

§ The Earl of LAUDERDALE
My Lords, could not the noble Baroness give us an assurance that there will be no further nationalisation?

§ Baroness BIRK
My Lords, I can assure the noble Earl that the Government have no plans to introduce further nationalisation legislation in the current Session of Parliament and that any future plans will have to depend upon the Government's legislative programme.

Lord CAMPBELL of CROY
My Lords, could the noble Baroness give the House any information about the Government's intentions concerning services? Can the noble Baroness give an assurance that the Government have no designs upon banks and insurance companies, the nationalisation of which has been described by a very high authority in the Labour Party as an albatross for that Party?

§ Baroness BIRK
My Lords, as the noble Lord has referred to banks, I do not think that I can do better than to repeat what my right honourable friend the Prime Minister said: that the Government do not intend to introduce legislation on these matters during the lifetime of this Parliament, and that he would not recommend its inclusion in the next Election Manifesto. This is still the position.

§ Lord BYERS
My Lords, the noble Baroness referred to banks. I believe that the Prime Minister referred to banks and insurance companies. Is that correct?

§ Baroness BIRK
Yes, my Lords.

§ Lord SHINWELL
My Lords, does my noble friend's declaration mean that the Liberal pact is now in jeopardy?

§ Baroness BIRK
No, my Lords, I do not think so. I am not quite sure what was the purpose of the noble Viscount's Question, but I am sure we are still quite good friends.

Viscount BARRINGTON
My Lords, when she said that there is no question of public sector investment, am I right in interpreting the noble Baroness's Answer as being that there is at present no question; that is, that no question had yet been raised? The impression left in some people's minds, as in my noble friend's, was that it would not be raised.

§ Baroness BIRK
My Lords, I think the noble Viscount answered the question himself, and if he did not it is another Question.