§ 2.47 p.m.
§ Lord Dean of BeswickMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what response, if any, they have received from the building industry to the Chancellor of the Exchequer's Autumn Statement.
§ The Parliamentary Under-Secretary of State, Department of the Environment (The Earl of Avon)My Lords, the Chancellor of the Exchequer's Autumn Statement has attracted a good deal of comment from the construction industry, but we have received little by way of direct response as yet.
§ Lord Dean of BeswickMy Lords, does not the Minister find that surprising, bearing in mind that the fears raised by the Statement that was made in August have been borne out and it is bearing fruit in the sense that there is a genuine reduction in building activity and in the business related to it, as well as increasing unemployment in the building trade sector?
§ The Earl of AvonNo, my Lords, I cannot really agree with the noble Lord. I find it amazing that an industry which has seen its output grow by 5 per cent. this year should be described as being in decline. In regard to unemployment, I am pleased to say that the latest figures for the employees in employment show a 2 per cent increase.
§ Lord Dean of BeswickMy Lords, I should like to ask the Minister how he relates that to the fact that in 1983 there were 712 bankruptcies or liquidations in the building sector and that so far this year (in the 10 months) the figure is 774. That represents an increase of nearly, 10 per cent. in bankruptcies and liquidations in the building industry. How on earth can he relate that to increased activity? Are not he and the Government suffering from a large dose of self-hypnosis in this matter?
§ The Earl of AvonNo, my Lords, we are not. These are figures which I have been given and which have been drawn out from other reports.
Lord Bruce of DoningtonMy Lords, the noble Earl may not have received direct representations from the building industry in this matter, but am I right in assuming that Her Majesty's Government cannot have been entirely insensitive to the views published not only by the building industry but also by the manufacturing industry in regard to the speeding up of construction and civil engineering work in this country? Does the noble Earl realise that practically everybody outside the Front Bench wants some stimulation in this field?
§ The Earl of AvonMy Lords, I am well aware that the Front Bench opposite wants stimulation in this field. But, as the noble Lord is equally aware, we believe there is benefit from a low rate of inflation and the scope for tax cuts. This, we believe, will really benefit the construction industry.
§ Lord BroxbourneMy Lords, will my noble friend have in mind and convey appropriately to his right honourable friend the Chancellor of the Exchequer the apprehensions entertained both by the building industry and by the civil engineering industry about any possible detrimental effects of the VAT position on construction?
§ The Earl of AvonMy Lords, I shall indeed convey those comments to my right honourable friend.
§ Lord Cledwyn of PenrhosMy Lords, how does the noble Earl reconcile what he has just said with the deep concern which has been expressed by every sector of the construction industry and by the Confederation of British Industry in their conference last month?
§ The Earl of AvonMy Lords, I am pleased to say that our figures for new orders show an increase in the industry of 6 per cent. so far this year compared with the same period last year. That, on the whole, is supported by the private sector.