§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1948 and as a percentage of gross national product (a) gross and net investment in manufacturing industry, (b) gross and net capital formation, (c) investment in plant and machinery and (d) retained profits.
§ Mr. BiffenThe figures requested are shown in the following table. Net domestic fixed capital formation is usually expressed as a percentage of net rather than gross national product—capital consumption for fixed assets having thereby been removed from both the numerator and the denominator. Capital 27W consumption for all fixed assets accounted for about 7 per cent. of gross national product in 1948—manufacturing assets 1½
Percentage of Gross National Product‡ Whole economy Gross domestic fixed capital formation Net domestic fixed capital formation Manufacturing industries† Industrial and commercial companies All assets Plant and machinery All assets Gross domestic fixed capital formation Net domestic fixed capital formation Undistributed profits 1948 … 11.9 4.2 4.7 2.7 1.1 10.4 1949 … 12.5 4.5 5.1 3.0 1.4 8.8 1950 … 12.8 4.8 5.4 3.3 1.7 11.8 1951 … 12.9 4.1 5.1 3.5 1.8 13.4 1952 … 13.4 5.0 5.2 3.5 1.6 8.1 1953 … 14.0 4.8 6.0 3.2 1.4 8.6 1954 … 14.4 5.1 6.5 3.3 1.5 10.5 1955 … 14.9 5.4 6.9 3.5 1.7 10.6 1956 … 15.1 5.5 7.1 4.0 2.1 10.9 1957 … 15.6 5.8 7.4 4.2 2.2 10.5 1958 … 15.4 5.8 7.2 3.9 1.9 9.6 1959 … 15.7 5.8 7.1 3.6 1.6 10.0 1960 … 16.3 6.0 8.3 4.0 2.0 11.1 1961 … 17.1 6.6 9.1 4.5 2.5 9.2 1962 … 16.7 6.3 8.7 4.1 2.0 8.0 1963 … 16.5 6.3 8.3 3.5 1.4 9.4 1964 … 18.0 6.6 10.0 3.7 1.7 10.0 1965 … 18.1 6.9 10.1 4.0 1.9 9.3 1966 … 18.1 7.2 9.9 4.0 1.9 7.9 1967 … 18.6 7.1 10.4 3.7 1.6 6.8 1968* … 18.7 6.8 10.6 3.6 1.6 8.0 1969* … 18.3 6.8 10.0 4.0 1.9 8.6 1970 … 18.4 7.1 9.8 4.1 2.1 8.2 1971 … 18.2 6.8 9.4 3.8 1.6 9.0 1972 … 18.2 6.3 9.0 3.2 1.1 10.2 1973 … 19.2 6.6 9.8 3.2 1.1 12.1 1974 … 20.2 6.8 10.0 3.7 1.4 11.0 1975 … 19.6 6.5 9.1 3.4 1.0 9.4 1976 … 18.9 6.6 8.3 3.2 0.8 11.4 1977 … 18.3 6.9 7.3 3.5 1.1 10.8 1978 … 18.1 7.0 6.8 3.6 1.1 10.5 1979 … 17.6 6.9 n.a. 3.5 n.a. 10.2 * Capital formation figures for 1968 and 1969 were slightly adjusted for the effects of a change in the rate of investment grants. † These estimates relate to direct investment by manufacturing industry only. Assets acquired by manufacturers on lease are included, on the bases of ownership, in estimates for the insurance, banking, finance and business services industry. Gross domestic fixed capital formation on these assets was about 0.4 per cent. of Gross National Product in 1979, and less than 0.2 per cent. in 1975. ‡ Gross National Product at market prices has been used as the denominator for investment percentages, and Gross National Product at factor cost for the calculation relating to retained profits.