§ Mr. Higginsasked the Chancellor of the Exchequer what assumption he made, in preparing recent Treasury forecasts, with regard to the growth of production potential ; and to what extent this potential was implemented by changes in investment and other relevant variables since 1974.
§ Mr. Denzil Davies :The forecast assumed that the rate of growth of productive potential is, in present circumstances, of the order of 3 per cent. The relationship over short periods between productive potential, investment and other major economic variables is extremely difficult to establish.
§ Mr. Churchillasked the Chancellor of the Exchequer if, taking February 1974 as 100, he will list in the Official Report the index of industrial production for each successive month to date.
§ Mr. Denzil Davies :The index of industrial production is calculated taking the average for 1970 as 100. When this index is resealed, taking February 1974 as 100, the index numbers for total industrial production, seasonally adjusted, since that date are as follows
obligations Great Britain has to the EEC with regard to freedom of capital movements and changes in exchange control ; when these next require changes to be made ; and if he will give an assurance that action will be taken on time.
§ Mr. Joel Barnett :I will let the hon. Member have a reply as soon as possible.