HC Deb 22 January 1985 vol 71 cc362-3W
Mr. Parry

asked the Secretary of State for the Environment what steps he is taking to reduce the level of unemployment in the construction industry in England and Wales; and if he will make a statement.

Mr. Gow

I refer the hon. Member to the Government's public expenditure plans for 1985–86 to 1987–88, published today. These offer the best prospects for the industry, through the Government's policies of tight control of public spending and encouragement of the private sector. These lead to a 4 per cent. growth in real terms in construction industry output in 1984.

Mr. Parry

asked the Secretary of State for the Environment what representations he has received concerning the effect of cutbacks in house building and the imposition of value added tax on building alterations on the construction industry; and if he will make a statement.

Mr. Gow

I refer the hon. Gentleman to the speech by my right hon. Friend on 19 December at column 305. The level of overall capital investment in the economy, public and private, was last year at a record level of around £55 billion. This year it is expected to reach another new record level of around £60 billion. The construction industry is sharing in that investment. The maintenance of tight control on public expenditure and measures taken in the 1984 Budget on VAT are part of the Government's overall economic strategy which has led to a 4 per cent. growth in real terms in the construction industry in 1984.

Mr. Parry

asked the Secretary of State for the Environment what representations he has received concerning the effect on the construction industry of cutbacks in local government spending; and if he will make a statement.

Mr. Gow

My right hon. Friend the Secretary of State discussed the recent report of the National Economic Development Office on the infrastructure at a meeting of the council on 9 January. A number of representations were made to my right hon. Friend on that occasion. My right hon. Friend and I hope to meet the group of eight next month. Overall capital investment, public and private, was a record of around £55 billion last year, in which the construction industry shared.