§ 21. Mr. Kenneth Clarkeasked the Secretary of State for Industry what is his Department's latest estimate of the probable level of investment in manufacturing industry in the next 12 months.
§ Mr. CryerThe latest investment intentions survey carried out by my Department in August and early September indicated that the volume of manufacturing industry investment would be between 12 and 17 per cent. greater in 1978 than in 1977. This would bring it to between £1,980 million and £2,070 million at 1970 prices.
§ Mr. Woofasked the Secretary of State for Industry what recent studies his Department has made into the reasons for low private investment in the United Kingdom manufacturing industries as compared with other industrial countries.
§ Mr. CryerStudies in my Department and elsewhere suggest that over the last two decades in relation to manufacturing output, manufacturing investment has not been particularly low compared with other industrial countries. However, the rate of growth of investment as of output has been well below that of our main competitors. Investment has been particularly depressed over the last few years as a result of the world recession. But with the recent improvement of the financial climate and the prospect of a significant increase in output over the next year a considerable improvement in the level of investment can be expected.
§ Mr. Knoxasked the Secretary of State for Industry if he will publish in theOfficial Report a table showing for each year since 1945 in terms of both current prices and revalued at 1970 prices the proportion of the gross national product devoted to investment by manufacturing industry.
§ Mr. CryerData at current prices are only available from 1948 and at constant prices from 1948. The proportions for the years 1948 to 1976 are:
546W
CAPITAL EXPENDITURE BY MANUFACTURING INDUSTRY AS PERCENTAGE OF GROSS NATIONAL PRODUCT AT MARKET PRICES Current Prices 1970 Prices 1948 … … 2.7 not available 1949 … … 3.0 1950 … … 3.3 1951 … … 3.5 1952 … … 3.5 1953 … … 3.2 1954 … … 3.2 1955 … … 3.5 3.2 1956 … … 4.0 3.7 1957 … … 4.2 3.8 1958 … … 3.9 3.6 1959 … … 3.6 3.3 1960 … … 4.0 3.7 1961 … … 4.5 4.2 1962 … … 4.1 3.9 1963 … … 3.5 3.3 1964 … … 3.7 3.5 1965 … … 3.9 3.8 1966 … … 4.0 3.8 1967 … … 3.7 3.6 1968 … … 3.6 3.6 1969 … … 4.0 4.0 1970 … … 4.1 4.1 1971 … … 3.8 3.8 1972 … … 3.2 3.2 1973 … … 3.1 3.0 1974 … … 3.8 3.5 1975 … … 3.3 3.1 1976 … … 3.2 2.9 Sources: National Income and Expenditure Blue Books andEconomic Trends. Annual Supplement.
Note: The figures for 1968 and 1969 have been adjusted to transfer from 1968 into 1969 the capital expenditure brought forward to secure the higher rate of investment grant operating up to 31st December 1968.