Mr. William O' BrienTo ask the President of the Board of Trade when he last discussed the prospects of continuing investment in the machine tool industry with the leaders of that industry; and what concerns the leaders in that industry expressed about ensuring their competitiveness in the world markets.
§ Mr. Charles WardleMinisters and officials in the DTI have had close and continuing contact with the machine tool industry in recent years. The most important influence on investment is a stable economic climate based on low inflation. Inflation is now at its lowest level for 27 years and the output of the United Kingdom machine tool industry is about 15 per cent. higher than a year ago.
We have also discussed with the industry's trade association, the Machine Tool Technologies Association—MTTA—ways to improve the overall competitiveness of the industry. We are presently working with the MTTA and other associations to produce guidance for small manufacturing firms which will enable them to improve the overall quality of investment. This was an initiative referred to in the White Paper "Competitiveness: Helping Business to Win", Cm 2563.