Mr Smith attacked successive Conservative governments for neglect of manufacturing throughout the 1980s. Although John Major had stressed the importance of manufacturing, Mr Smith said that there remained 'no strategy for industry at all'. He urged the Government to create a more stable environment to allow companies to invest in research and development with a view to the long term.
He said: 'Industry cannot prosper if companies continually have to look over their shoulder in fear of takeover because of a short-term dip in their share price.' He said that in the forthcoming Budget there was a strong case for extending the level of capital allowances beyond the current year and considering tax credits to encourage investment.Reuse content