HC Deb 07 February 1977 vol 925 c519W
Mr. John Moore

asked the Chancellor of the Exchequer on what criteria he bases the judgment in Command Paper No. 6721-I, "The Government's Expenditure plans" page 14, paragraph 56, that North Sea oil, by easing the balance of payments constraints, will give the United Kingdom the opportunity to secure a major strengthening of the industrial base, and through this a renewed growth in employment.

Mr. Joel Barnett

Governments in the United Kingdom have frequently had to choose between running the economy at a low pressure of demand with high unemployment or allowing the balance of payments to move into deficit. The coming of North Sea oil will bring a considerable advantage to the balance of payments and so will enable the Government to maintain a higher level of activity in the economy than would otherwise have been possible. This not only stimulates the demand for domestic output but should also stimulate investment by improving its profitability and in both ways help to achieve renewed growth of employment.

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