HC Deb 21 February 1980 vol 979 cc334-5W
41. Mr. Race

asked the Chancellor of the Exchequer what is his estimate of the increase in investment in private sector manufacturing industry that has taken place in the financial year 1979.80, as a direct consequence of the Government's cuts in public expenditure.

Mr. Biffen

Reductions in public expenditure are an essential part of the Government's policies for reducing inflation and creating a climate conducive to investment and enterprise.

I expect the beneficial effects on private manufacturing investment to build up over time, but it will be possible to attribute part of any increase in investment directly to public expenditure cuts.

42. Mr. David Price

asked the Chancellor of the Exchequer what steps he is taking to ensure that British manufacturing industry has the necessary capital to take advantage of any upsurge in the world economy over the next five years.

Mr. Biffen

The Governments of most major trading nations are agreed that a faster rate of growth of world trade depends on pursuing domestic policies to reduce inflation. This is the top priority of the United Kingdom Government. Once inflation has been reduced, financial conditions should be favourable for British manufacturing industry to take advantage of increased world demand.