asked the Minister for Finance if his attention has been drawn to the serious consequences of cuts in public investment for mediumterm economic growth.
Written Answers. - Public Investment Cuts.
381.
The 1980 Public Capital Programme at £1,154.09 million represents an increase of £152.96 million or more than 15 per cent on the 1979 outturn. Therefore, there has been no overall cut in public investment for 1980. The increase in the size of the programme is not as great as in recent years but it has been set at the maximum level consistent with the need to reduce the Exchequer borrowing requirement. Unless borrowing is reduced to a sustainable level the maintenance of a satisfactory growth-rate in the mediumterm could be put at serious risk.
The composition of the programme has been devised with particular reference to the requirements for medium-term economic growth. For example, the capital allocations for industrial promotion and infrastructural development have been increased by over 21 per cent and 33 per cent respectively.