§ 13. Mr. Gwilym Robertsasked the Secretary of State for Industry what are the latest figures available for the level of productivity in British industry; how this productivity has changed since May 1979; and what steps he is taking to increase productivity.
§ Mr. Kenneth BakerThe index of output per person employed in manufacturing industry in the third quarter of 1980 was 105.2–6½ per cent. below the figure for the second quarter of 1979. However, if approximate allowance is made for the sharp fall in the average number of hours worked by operatives in manufacturing the decline in productivity is a good deal smaller. The key to productivity improvement lies not with the Government, but with management and work forces.
§ Mr. RobertsDoes the Minister agree that the productivity figures reflect the complete failure of the 743 Government's policies? In general, does he agree that there is a high negative correlation between the growth of productivity and the level of unemployment? Does he agree that in times of low unemployment there are high increases in productivity, and vice versa? Does he agree, therefore, that the Government's main task should be to stimulate growth in general and, in particular, in high technology areas?
§ Mr. BakerThe economic relationship stated by the hon. Gentleman is by no means proven. It varies from country to country and from recession to recession. I emphasise that the figures which I gave exaggerate the drop in productivity. The figures for the third quarter of 1980 compared with the average for 1979 show a smaller drop—albeit a drop which I deplore—of 4 per cent. The Government attach a great deal of importance to the whole area of high technology and information technology. That is why the Prime Minister has charged me with the responsibility for information technology in the Government. It is a clear growth area. Britain must not fail to take advantage of the enormous opportunities which it offers.
§ Mr. EmeryI congratulate my hon. and personal Friend on his promotion. When encouraging the growth of productivity will the Minister study the levels of research and development by Japanese and British industry? Will he stress that in high technology and robotic areas British industry should consider licensing some of the technology from Japan when it is not as far forward as Japanese technology.
§ Mr. BakerThat is a possibility for many firms in the high technology industry and many do it already. I agree that the level of research and development in technology is key to the successful development of the industries dependent upon it. That is something which will concern me.