§ Mr. Woofasked the Secretary of State for Industry what is the policy of Her Majesty's Government to encourage a high rate of private investment in United Kingdom manufacturing industries.
§ Mr. KaufmanOne of the main aims of the Government's economic and industrial strategy is to encourage a high rate of private investment in United Kingdom manufacturing industries and to stimulate the most efficient use of present and future investment.
§ Mr. Woofasked the Secretary of State for Industry what studies his Department 8W has made into reasons for low private investment in United Kingdom manufacturing industries, as compared with other industrial countries.
§ Mr. KaufmanThe economists in the Department of Industry have undertaken a considerable amount of work comparing investment in manufacturing in the United Kingdom with that in other major industrial countries. They have concluded that in relation to manufacturing output and growth in the United Kingdom manufacturing investment has not been low by general international standards. The causes of the United Kingdom's low economic growth relative to that of our competitors are a matter of deep concern and are under constant study in the Department.
Total investment in manufacturing as a proportion of manufacturing net output for the period 1953–71 is given in the table below:
Investment in manufacturing as a proportion of net output in manufacturing 1953–71 Japan … … … 22.8 France*† … … … 13.9 Italy‡ … … … 19.5 USA … … … 10.8 United Kingdom … … … 13.1 Germany FR … … … 11.9 Notes.—* Manufacturing construction; † 1956–71; ‡ Manufacturing, mining and quarrying, construction, electricity, gas and water. Sources: OECD National Accounts for all countries except Germany. Germany FR: Deutsches Institut füur Wirtschaftforschung, Berlin.
These figures refer to manufacturing investment in the long term rather than in any part of the cyle. There is currently an investment recession in the United Kingdom.