Manufacturing Industry

HC Deb 29 April 1987 vol 115 cc141-2W

21. Mr. Ron Davies

asked the Secretary of State for Trade and Industry what plans the Government have to increase investment in manufacturing industry this year; and if he will make a statement.

Mr. Giles Shaw

Investment decisions are for industry. The best stimulants are confidence in the future and the prospects of good profits. Our sound economic policies, which have brought sustained growth in the economy, improved profitability and low inflation, are the best guarantees of favourable conditions for further investment.

39. Mr. James Hamilton

asked the Secretary of State for Trade and Industry when he next intends to meet the Trades Union Congress to discuss investment in manufacturing industry.

Mr. Giles Shaw

My right hon. Friend meets the TUC regularly at the National Economic Development Council, where matters relevant to improving industrial performance are discussed. I have no plans for a separate meeting on the subject, but I met the steel committee representatives on Thursday 26 February.

40. Mr. Knox

asked the Secretary of State for Trade and Industry what is the most recent figure for output in manufacturing industry; and how this compares with the figure for the same month 13 years ago.

Mr. Giles Shaw

The hon. Member will appreciate that monthly data can be erratic. However, since the trough of the recession in 1981, manufacturing output has increased by over 15 per cent. to reach a level of 107.6 in February 1987, based on 1980 equal to 100. This was about 1½ per cent. lower than the level of output in February 1974.

41. Mr. Dixon

asked the Secretary of State for Trade and Industry if he will make a statement on the current level of investment in manufacturing industry.

Mr. Giles Shaw

Investment in manufacturing industry was nearly 20 per cent. higher in 1986 than in 1983. The underlying determinants of manufacturing investment.—sustained growth in the economy, improved profitability and a low rate of inflation—are very favourable, and forecasters expect a further significant increase in manufacturing investment in 1987.