§ 36. Mr. Hunterasked the Chancellor of the Exchequer what measures he intends taking to encourage an increase in United Kingdom manufacturing output.
§ Mr. MacGregorOur policies to exert downward pressure on inflation and to stimulate the supply side of the economy will continue to maintain an environment in which all sectors of the economy can flourish. Supply side policies promote the flexible operation of labour, goods and financial markets by sharpening incentives, encouraging competition and enterprise, and promoting deregulation. Measures include privatisation, contracting out of public services, the simplification of taxes to remove distortions and improve incentives to work, and reforms to ease rigidities in the labour market. The fall in oil prices and its effects will of course bring substantial benefits to the manufacturing sector. The Government also provide substantial direct assistance to manufacturing industry. In 1984–85 over £2 billion, largely going to manufacturing industry, was provided through regional and territorial spending, through support to particular sectors, support to exports and through expenditure on training. [A detailed breakdown is given in the annex to the Government's reply to the report of the House of Lords Select Committee (Cmnd. 9697).]