HC Deb 02 April 1979 vol 965 cc916-8
4. Mr. Knox

asked the Secretary of State for Industry what was the index of production in manufacturing industry in the most recent month for which figures are available; and what was the figure for the same month in 1974.

12. Mr. Durant

asked the Secretary of State for Industry whether he is satisfied with the current level of manufacturing production.

The Minister of State, Department of Industry (Mr. Alan Williams)

The provisional estimate of the index of production for manufacturing in January 1979 is 94.9, based on 1975=100. The level of production in that month was abnormally low because of the transport disputes and adverse weather. The corresponding figure for January 1974 was 101.8. Much of the production lost in January of this year will be made up in the next few months.

Mr. Knox

Do not those figures show that the effect of industrial disputes on manufacturing production in January this year under a Labour Government was much greater than their effect under a Conservative Government during the three-day working week in 1974? Is not this especially serious when we consider the increase that there should have been in manufacturing capacity over the past five years?

Mr. Williams

It shows no such thing, and the hon. Gentleman must be aware of that. He knows that a major factor in the comparative figures has been the world recession. As I indicated when we last had questions on this subject, the January drop in production was about 10 per cent. The important feature of the two disputes is that, as I indicated in my reply, most of the production lost this time will be made up within a few months. We recall the catastrophic nature of the three-day working week. In those days I was shadowing the Department of Prices and Consumer Protection. Two years later we were still facing the shortages that arose from the three-day working week.

Mr. Durant

Will the Minister accept that that is not true, and that the effects of the lorry drivers' strike are still being felt in manufacturing industry? The Government stand indicated for the low rates of productivity, which are due to high taxes, trade union interference and all the things that are a disincentive to industry and manufacturing to create the wealth of this nation.

Mr. Williams

These misunderstandings will all be clarified in the next few weeks. The low productivity of this country owes much to the fact that investment in manufacturing industry collapsed under the Conservative Administration. We have had to restructure investment and rebuild it.

Mr. Molloy

Does my right hon. Friend agree that the supplementary question by the hon. Member for Leek (Mr. Knox) puts beyond doubt the belief that the Tory Party has an obsession with industrial disputes? The hon. Gentleman referred to the industrial disputes which took place under the Tory Government, and he then referred to the industrial disputes of this winter, for which the Tories were primarily responsible. Does my right hon. Friend agree that it would be much better if the Conservative Party took to heart the message of the Prime Minister and concentrated on co-operation with industry, rather than confrontation?

Mr. Williams

I am afraid that it is alarming to recognise that the Opposition seem to be hell-bent on a policy of continuous confrontation. If the country wishes to see not just a continuation but an acceleration of the type of unrest that we have seen during this winter, it needs only to elect Conservative Members.

Mr. Kenneth Clarke

The Minister referred to the lorry drivers and the weather in explaining the January figures. Will he confirm that between the autumn of 1973 and the autumn of 1978 there was a fall of 6 per cent. in the level of production by manufacturing industry in this country? Is not that a clear indication of the failure of the Government's so-called industrial strategy and the damage that has been done by creating a climate of the sort so clearly described by my hon. Friend the Member for Romford (Mr Neubert)?

Mr. Williams

That the hon. Member can ask such a question is an indication that Conservative Members have had their heads firmly buried in the sand for some years. We have the greatest world recession since 1930. The fall in production has been widespread in many countries and not just here.