Economy: Growth
Debate between Baroness Wilcox and Lord Higgins
Baroness Wilcox
I am very lucky indeed to have a colleague like my noble friend Lord Sassoon to work with and to depend on. The Plan for Growth lays the foundations for a stable and rebalanced economy. As the Prime Minister said last week, we have a plan to achieve strong, sustainable and balanced growth and we are sticking with it.
Lord Newby
Does the Minister agree that Whitehall has a very poor track record in getting major infrastructure projects moving forward expeditiously? Can she therefore tell us what steps BIS is taking to support the initiative of the Chief Secretary to kick start 40 major infrastructure projects?
Baroness Wilcox
He is doing everything he can. It is a good question and I am happy to respond to it. We are obviously committed to an export-led recovery, which is important to us. The Plan for Growth and the Trade and Investment White Paper have set out how we can better exploit opportunities in this area. I shall respond to the noble Lord’s specific point in more detail.
Lord Campbell-Savours
My Lords, are there any lessons to be learnt from the early 1930s when public expenditure was cut?
Baroness Wilcox
We are making policies for now, looking forward. I am not sure, looking backwards, that there are too many lessons to be learnt from recent years.
Lord Higgins
My Lords, third time lucky. I welcome the recent decision to increase quantitative easing since an increase in the money supply is essential if growth is to be sustained. Does my noble friend agree that fears that this will increase inflation need at least to take into account the very high level of excess capacity in the economy, which will be used if the Government adopt a policy of quantitative easing?
Baroness Wilcox
I absolutely agree with my noble friend. Quantitative easing is a positive move to help the British economy. The evidence shows that it should keep interest rates low and boost demand, which will help families, too, at a very difficult time.