Orders of the Day — Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 4:32 pm on 15 March 1982.

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Photo of Mr John Browne Mr John Browne , Winchester 4:32, 15 March 1982

I have listened with great care to what my right hon. Friend has said. I wish to ask two questions.

First, history since the last war shows that, although Governments have injected increasing amounts of money into the economy, long-term unemployment has continued to rise almost without hesitation. What makes my right hon. Friend believe that a massive injection by the Government will reduce unemployment in the long term?

Secondly, with reference to the question put by my hon. Friend the Member for Halesowen and Stourbridge (Mr. Stokes), does my right hon. Friend not agree that it is insufficient merely to restore productivity, because there is no point in having vast quantities of our own goods which nobody buys merely sitting in inventory? The answer is surely that we must restore competitiveness. There is demand in our own economy so long as we are competitive.