§ Mr. Sillarsasked the Chancellor of the Exchequer how much of the rate of growth in the economy he expects to be taken up by underlying productive potential; and what this will leave in terms of growth for new job creation.
§ Mr. Joel BarnettWe anticipate that manufacturing production will increase by 8½ per cent. per annum over the next 18 months. The objective of the industrial strategy and the policy for public expenditure is to put ourselves in a position to maintain over a longer period a rate of growth higher than has previously been sustained for more than a few months. Achievement of industrial recovery at this rate will require a faster growth of productive potential and this will provide jobs in the creation of new capacity, in its operation and in the better utilisation of existing capacity. The initial increase in production is coming from the higher productivity of people472W and plant currently employed. As time goes on further increases will progressively come from new capacity and newly created jobs. The Government hope to be able to achieve an unemployment rate of 3 per cent. by 1979 by the full utilisation of the new capacity and any existing spare capacity.