HC Deb 19 July 1968 vol 768 cc304-5W
Mr. Arthur Lewis

asked the Secretary of State for Economic Affairs whether he is aware that since 1964 industrial production in Great Britain has risen by only 4.3 per cent. compared with 23 per cent. in the United States of America, 64 per cent. in Japan, 7 per cent. in Germany, 12 per cent. in France, 35 per cent. in Italy, 16 per cent. in Australia and 14 per cent. in India; and what recent action he has taken or intends to take to ensure that British production will rise above the annual average of 1.4 per cent of the past three years.

Mr. Frederick Lee

The whole of the Government's industrial policy is directed towards increases in efficiency in industry, leading to cost reductions, a strong balance of trade and vigorous growth in output. The basis of the figures in the first part of the Question is not clear; but British industrial production in the three months, March, April and May was 4 per cent. greater than a year earlier and 8 per cent. above the average 1964 level.

Mr. Arthur Lewis

asked the Secretary of State for Economic Affairs in view of the fact that compared with the first quarter of 1967, during the first quarter of 1968 industry's capital expenditure on plant and machinery had fallen from £288 million to £276 million and new building had likewise fallen from £158 million to £143 million, what estimate he has made of the extent to which these decreases will affect the Government's programme for increasing industrial production.

Mr. Frederick Lee

It is not possible to estimate with any precision the effect of a given level of investment on the growth of productive capacity; but I am glad to see that industrialists expect to invest more this year.