Productivity (Hansard, 23 January 1978)

§ 4. Mr. Forman
asked the Secretary of State for Industry if he is satisfied with the increase in British industrial productivity since March 1974.

§ 6. Mr. Fry
asked the Secretary of State for Industry in what respects he has so far achieved the overriding objective of improving Great Britain's industrial performance.

§ 13. Mr. Haselhurst
asked the Secretary of State for Industry whether he is satisfied with improvements in output by British industry since the implementation of the industrial strategy.

The Minister of State, Department of Industry (Mr. Alan Williams)
Despite the deepest world recession for 40 years, genuine progress has been made in establishing conditions in which British industry can do well at home and abroad.

§ Mr. Forman
Is the Minister aware that, according to the figures which I received from his own Department since his party came to power in March 1974, the United Kingdom is the only major industrialised country to have merely staggered back to where it was in terms of manufacturing output per employee at that time? Does this not underline the damage done to industrial productivity in this country by the mistaken and sometimes vindictive policies of his Government, especially during the first two years of their term of office?

Mr. Williams
The overwhelming message that came from the 40 sector working parties in the industrial strategy was that the essential prerequisite for solving the problems of industry was getting the economic climate right. I draw the hon. Member's attention to an item in the 949 Observer yesterday which made the point that shares and reserves were up, the pound was up, inflation was down, interest rates were down, medium term loans were at their lowest rate for a number of years, the country was earning its keep for the first time for many years and foreigners were putting money into this country. [HON. MEMBERS:"Oh."] I know that the Opposition do not like this. The IMF has indicated that we are making better progress than expected. That is the assessment not of some wild Socialist but of Barclays Bank in its advertisement.

§ Mr. Fry
Does not the right hon. Gentleman agree, however, that our industrial performance is still disappointing and that without the benefit of North Sea oil the position would not be as cheerful as he and his colleagues are constantly making out? Against this background, will he try properly to answer the question put by my right hon. Friend the Member for Leeds, North-East (Sir K. Joseph): what is the right hon. Gentleman's attitude to the proposals for the extension of Government interference as outlined in the Labour Party's "Programme for Britain 1976"? We did not hear what the Secretary of State thought about them.

Mr. Williams
I clearly heard at our last Question Time the views of the right hon. Member for Leeds, North-East (Sir K. Joseph). Let us bear in mind that what he said then was that, for example, the Government should not be giving financial support to successful private enterprise, in which case the recently announced Ford project would be taking place in Ireland, not in Britain. The right hon. Gentleman further indicated that he deplored support for the steel and shipbuilding industries and that he would have sold out Chrysler and British Leyland. That is what the Conservatives would do for British industry.

§ Mr. Haselhurst
What is the purpose of the industrial strategy if it is not to achieve a sizeable increase in output and make a dent in the appalling unemployment figures that the Government have produced?

Mr. Williams
The Opposition seem signally unaware that we have been in a major recession, just as the rest of the world has. The industrial strategy must, 950 of course, be directed to a long-term improvement for industry. It is a medium-term to long-term policy. On 1st February there will be a discussion in NEDC on the latest proposals which will be coming from the sector working parties. The interim reports were that by 1980 they were capable of improving their market performance by £3,000 million. That is what the industrial strategy is about.

§ Mr. Ronald Atkins
Does my right hon. Friend agree that British industrial productivity has been unsatisfactory since 1884? Is it not true that the problem has nothing to do with one party or the other but results from a weakness in private enterprise in this country?

Mr. Williams
It is a valid contention that productivity in this country has suffered from the alternating stops and gos of our economy under successive Governments, Labour as well as Conservative. This has affected the investor's and the working man's attitude to new investment. What is important is that last year investment rose by 7 per cent. One can say—making certain calculations for the final quarter—that in real terms investment last year was higher than in 1972 and in 1973. As I have continually pointed out to the Opposition, they never managed to achieve again the levels of investment achieved in 1970.

§ Sir K. Joseph
But does the right hon. Gentleman think that the proposals in Labour's "Programme for Britain 1976" will make matters better or worse?

Mr. Williams
Those were proposals for discussion. The Labour Government's policy is spelt out in their manifesto. As our record has shown this time, it is then carried out during the period of Labour government.

§ Mr. Haselhurst
On a point of order, Mr. Speaker. Is it not an established practice of Question Time that an hon. Member should be given notice if his or her Question is to be coupled with that of another hon. Member?

§ Mr. Speaker
I think that it is a normal courtesy. The Minister may have slipped up. I do not know.

§ Mr. Heffer
Is my right hon. Friend aware that the Labour Party's "Programme for Britain 1976" is a projected 951 programme for the future, and it does not necessarily follow that it will have to be carried through in this Parliament, though it is party policy? Will my right hon. Friend also explain to the Opposition that the United States, West Germany, France, Italy and most of the European countries are not run by Labour Governments but their percentage of unemployment is higher than that in this country?

§ Sir K. Joseph
No. Rubbish.

Mr. Williams
It is worth re-emphasising the point that my hon. Friend the Member for Liverpool, Walton (Mr. Heffer) has made that unemployment is high throughout the Western world. This is an international phenomenon to which the Opposition wish to turn a blind eye. If the right hon. Member for Leeds, North-East (Sir K. Joseph) wishes to make any constructive points on this matter, I shall be glad to hear from him. All that he has said on industrial policy in the past few months has been destructive and would add to the levels of unemployment.

§ Mr. Welsh
Does the Minister agree that the self-employed and small businesses can play a significant role in improving economic conditions and creating new employment? Will he take steps to set up a fund in Scotland, using a portion of Scottish oil revenues, as venture capital to set up new businesses, and will he abolish the discriminatory 8 per cent. levy on the self-employed?

Mr. Williams
In his recent Budget Statement my right hon. Friend the Chancellor of the Exchequer made various alterations favourable to small firms. The Scots have their own Scottish Development Agency, with its own resources, which can establish its own priorities and will soon be responsible to its elective council.