The Deputy Governor describes the impressive way in which British industry has responded to the pressures put upon it over the last four years to emerge in a notably stronger position. Fundamental to a sustained recovery will be an expansion in investment and he charts the causes and consequences of the long-run underlying decline in investment which began well before the present recession.
Looking ahead at ways we may exploit the more cheerful economic environment, the Deputy Governor outlines the roles of government, industry and the banks. Government most of all should provide a stable environment for business to flourish and expand. The survival and prosperity of industry depends on further increases in profitability, competitiveness and investment. And the banks must continue to adapt the types of finance they provide to meet the needs of business, and to be involved in appraising projects on the basis of projected cash flow rather than balance sheet positions.
The scope for industrial expansion - Lecture by the Deputy Governor