CBI

HC Deb 13 July 1976 vol 915 cc362-4

Q1. Mr. Norman Atkinson

asked the Prime Minister when next he intends to meet the leaders of the CBI; and if he will make a statement.

The Lord President of the Council and Leader of the House of Commons (Mr. Michael Foot)

As the House knows, my right hon. Friend is in Brussels attending a meeting of the European Council, and in his absence I have been asked to reply.

My right hon. Friend met representatives of the CBI—and of the TUC—when he took the chair at the meeting of the National Economic Development Council on 7th July. Further meetings will be arranged as necessary.

Mr. Atkinson

Does not my right hon. Friend agree that the best explanation for the CBI's reluctance to discuss with the NEDC the whole question of British industrial management is that it is conscious of the quality of British industrial management? Does he agree that it is possibly management's quality which is the most significant factor in Britain's poor industrial performance? Does he agree that higher management is a poor mix of brilliance and mediocrity and that there is no known system for talent-spotting in industry? Will he recommend to the Prime Minister the setting up of a management advisory council so that the Government at least can equip itself with some talent to occupy the vacant jobs?

Mr. Foot

I certainly agree with my hon. Friend that improvement in management is obviously one of the things that is desirable and highly necessary for a general improvement in British industry. From my own knowledge of the discussions in the NEDC, I can assure him that management's performance has often figured as a topic. I am not sure whether my hon. Friend's proposal is the right one, but I shall suggest it to my right hon. Friend.

Mr. Grylls

Will the right hon. Gentleman ask the Prime Minister to raise with the CBI the question of the low level of investment in industry? Is he aware that according to Government figures it has dropped from 13 per cent. in 1960 to 2 per cent. today? Does he agree that the modest change in the Price Code is not enough?

Mr. Foot

Those matters are constantly discussed by the NEDC and the CBI. Changes in the Price Code followed full discussions with the CBI.

Mr. Robinson

Is my right hon. Friend aware that there is an urgent need for the exemplary co-operation between the Government and the trade unions to be buttressed by a real commitment by management to a tripartite attack on our industrial problems? Does he agree that this could be best met by managements being willing to increase investment in manufacturing industry in Britain?

Mr. Foot

All hon. Members on this side of the House, and probably many on the other side, will probably agree with my hon. Friend. Lord Watkinson gave a commitment on behalf of the CBI which was welcomed by the Government. We hope that that can be carried further in the future.

Mr. McCrindle

Is the right hon. Gentleman satisfied that the CBI continues to speak effectively on behalf of the many smaller firms in Britain? Is it not time that the whole structure of these discussions between the Prime Minister and the NEDC were reformed so that the Prime Minister and the Government could get a better idea of what the smaller firms were thinking about investment, employment and profitability?

Mr. Foot

I doubt whether it is my business to say how representative the CBI is of British industry generally. Small firms, as well as the CBI, have the opportunity of putting their views to the Government.