HL Deb 25 April 1985 vol 462 cc1214-5

3.3 p.m.

Lord Dean of Beswick

My 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, has been received from the building industry to the financial proposals contained in the Budget.

Lord Skelmersdale

My Lords, we have had little formal reaction from the industry. The measures contained in the Budget, in particular the abolition of development land tax and the Chancellor's assurances about VAT, should have been very encouraging to the construction industry. The industry is benefiting from the long-term economic growth which the Government's policies are securing. In 1984 private sector completions were at their highest level for eight years and last year output of private, industrial and commercial work grew by 10 per cent. in real terms.

Lord Dean of Beswick

My Lords, I am grateful to the Minister for that reply, but may I ask whether he is surprised at such a lack of reaction? I put that question bearing in mind that in the past the Group of Eight, which widely reflects the views of the building industry, has normally been allowed a meeting with the Chancellor of the Exchequer prior to his Budget, but this year was fobbed off with the Financial Secretary to the Treasury, who did not even stay for the whole of the meeting. Is that the type of shabby treatment that the Government ought to be meting out to one of our major industries?

Lord Skelmersdale

My Lords, my honourable and right honourable friends have constant contact with the building and construction industry, and the fact that the personnel involved were changed reflects no discredit on them.

Lord Bruce of Donington

My Lords, the noble Lord has said that he has had no formal responses from the building industry. Is he not aware that the building industry in its entirety has been almost unanimous in saying that the Government's proposals are inhibiting that industry to the tune of roughly £900 million a year?

Lord Skelmersdale

No; before the Budget, my Lords.

Lord Graham of Edmonton

My Lords, does the Minister recall that the Chancellor and the Government said that this was a Budget for jobs? Bearing that in mind, would the Minister care to tell the House what assessment he and his colleagues have made of the impact of the Budget proposals on trying to reduce the appalling national waste of having 400,000 construction workers on the dole while more than a million families are waiting to be housed by councils?

Lord Skelmersdale

My Lords, there may be very good reasons for improving the infrastructure, but employment is not one of the them. In a recent trip to see a sewer renovation scheme I discovered for myself that the contractor had not employed one extra man.

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