Below is the text of Mr Major’s written Parliamentary Answer on the Manufacturing Industry on 29th July 1988.
Mr. Austin Mitchell To ask the Chancellor of the Exchequer what is his estimate of the elasticity of demand for imports and exports of manufactures relative to price; and whether he has any evidence that the elasticity in either case is different in the case of trade with the European Economic Community.
Mr. Major Estimates of elasticities for exports and imports are published in the Her Majesty’s Treasury “Macroeconomic Model Documentation, October 1987”, a copy of which has been placed in the Library of the House. No estimates of these figures have been made for trade with the European Community.
Mr. Austin Mitchell To ask the Chancellor of the Exchequer what estimates he has of the proportion of the investment in plant and machinery in manufacturing industry in each of the past five years which has been due to (a) the change in the real exchange rate since 1976 and (b) lack of capacity.
Mr. Major No such estimates are available.
Mr. Bowis To ask the Chancellor of the Exchequer what has been the growth of manufacturing productivity in the economy since 1980.
Mr. Major In the three months to May 1988 output per head in manufacturing was 50 per cent, higher than its average level in 1980.