§ Mr. Nicholas WintertonTo ask the Chancellor of the Exchequer if he will make a statement outlining those steps which have been taken by his Department since 9 April 1992 specifically to assist the United Kingdom construction industry; and what future action he intends to take to assist the construction industry.
§ Mr. Portillo[holding answer 26 January 1993]: The measures outlined in the autumn statement included substantial help for the construction industry:
In conjunction with the other measures in the autumn statement to help industry in general, as well as low inflation, recent reductions in interest rates, and the lower exchange rate, this package should have a beneficial impact on construction.
- assistance to the housing market, such as extra spending by the Housing Corporation;
- local authorities allowed to spend 100 per cent. of all capital receipts realised between 12 November 1992 and the end of 1993;
- priority given to investment and construction expenditure within public expenditure plans wherever possible;
- over £1.2 billion allocated to the Jubilee Line Extension over next three years. The project will go ahead, subject to successful outcome of negotiations with the administrators of Canary Wharf;
- the roads programme baseline was protected, allowing an increase in the volume of work, given lower construction prices;
- relaxation of rules on private sector financing of public sector projects should encourage a wider range of joint ventures
- additional £700 million of ECGD cover in 1992–93 and 1993–94 in important but risky markets will help construction projects run by United Kingdom companies abroad.