HC Deb 01 November 1989 vol 159 cc217-8W
84. Mr. Devlin

To ask the Chancellor of the Exchequer whether he will make a statement on current investment levels in British industry.

Mr. Norman Lamont

In 1988 business investment grew by 17½ per cent. to reach £51.3 billion at 1985 prices. Business investment is now at the highest level ever recorded as a proportion of GDP.

88. Mr. Bowis

To ask the Chancellor of the Exchequer if he will make a statement on levels of industrial investment and company profitability.

Mr. Norman Lamont

In 1988 business investment grew by 17½ per cent. to reach £51.3 billion at 1985 prices. Business investment is now at the highest level ever recorded as a proportion of GDP.

Data for company profitability are available only up to 1987. The net real rate of return on capital employed for non-North-sea industrial and commercial companies rose from 9 per cent. in 1986 to 10 per cent. in 1987, the highest level for over a decade.

High levels of investment and company profitability reflect the success of the Government's macroeconomic policy.

96. Mr. Page

To ask the Chancellor of the Exchequer if he will make a statement on the latest figures for manufacturing investment, and show comparable figures in real terms for a similar period in 1978.

Mr. Norman Lamont

Revised estimates of investment in the second quarter of 1989—the most recent available—were included in the GDP press release issued on 22 September. Manufacturing investment including leased assets, is estimated to have been £3.2 billion (1985 prices, seasonally adjusted) in the second quarter of 1989, compared to £2.7 billion in the second quarter of 1978. The figure for the second quarter of 1989 is the highest recorded, and comes after growth of 8¼ per cent. a year between 1983 and 1988. Under the last Labour Government manufacturing investment grew by less than 2½ per cent. a year.