HC Deb 18 May 1976 vol 911 cc1191-2
Mr. Arnold

asked the Secretary of State for Employment what further contraction he anticipates in the long-term prospects for employment in manufacturing industry.

Mr. Booth

It is the Government's policy to take steps to check and reverse the relative decline in manufacturing employment that has occurred over the past decade. This is a dominant theme in the new industrial strategy and it will continue to be a major consideration in the Government's overall economic strategy.

Mr. Arnold

Does the Secretary of State agree that employment in the manufacturing industry has suffered from a significant and serious decline in recent years? The retrenchment from expansion to a situation that we now have, of very high contraction, is one that undermines our profit margins most seriously and therefore the ability of a whole portion of our economy to compete internationally.

Mr. Booth

There has been a decline in manufacturing employment in recent years, partly due to cyclical factors and increasing capital intensity of some of our manufacturing industry. But our present strategy, based on devoting more investment to manufacturing industry and exporting, should more than offset the factors that have led to the decline over the last few years.

Mr. Noble

Does the Secretary of State agree that while it is important to restructure this industry and redirect investment, these efforts are wasted unless there is an early attempt to control the flow of imports into this country by selective import controls?

Mr. Booth

That is primarily a matter for my right hon. Friend the Secretary of State for Trade, but unless some of our major exporting industries can be competitive in international markets they will not be saved by short-term import limitation measures.

Mr. Hayhoe

Does the Secretary of State agree that it is essential for our economic future that we transfer resources in this country from wealth consumption to wealth creation? Under the present Administration, is not the trend of moving in the opposite direction contributing to our economic ills?

Mr. Booth

I see no evidence that this is the case in current Government plans. Part of the difficulty in the debate taking place on public expenditure priorities arises from the determination that more money should be put into the manufacturing sector.