§ Lord Lloyd of Kilgerranasked Her Majesty's Government:
With reference to the answers given by Lord Hesketh on 16th June (Official Report, cols. 1642–3),
- (a) what proportion of the value of orders amounting to £19.57 billion placed by contractors for new construction work in Great Britain in 1988 apart from road construction represents the value of products and material purchased from abroad to complete such construction work; and
- (b) what steps they are taking to encourage such contractors to purchase building products and material from United Kingdom sources rather than from abroad.
§ Lord HeskethApproximately 10 per cent. of the the total value of construction output in 1988 was attributable to products and materials purchased from abroad. This figure includes an element used in repair and maintenance which cannot be separated from new work.
Some 50 per cent. of the trade in construction products and materials is with other member states of the EC. The Treaty of Rome prevents the placing of restrictions on such imports or the use of measures having equivalent effect. However the Government do encourage domestic producers to invest some of their record profits in new capacity, improved quality and competitiveness and in more research and development.