HC Deb 15 July 1982 vol 27 cc1163-4
13. Mr. Bidwell

asked the Chancellor of the Exchequer when he now expects output to obtain the level of May 1979.

Mr. Hayhoe

I cannot give a firm date, but growth will be faster the quicker we are able to improve competitiveness and profitability.

Mr. Bidwell

Does the hon. Gentleman realise that the public believe that the Government can no longer hide behind allusions to the Labour Government's record? Does the hon. Gentleman also realise that the public feel that there is no hope under this Government? Does he agree that to stimulate greater output we must put the unemployed skilled workers into productive employment under the stimulus of policies that have now been set out publicly by the Labour Party? Does he further agree that we must give considerable State assistance through national enterprise? Is it not a wholesale indictment of the Government that there are 4 million people unemployed and that the Government can do nothing about it?

Mr. Hayhoe

More jobs will be available to skilled men and women, as well as to the unskilled, when more people buy British goods.

Mr. Stephen Ross

Will the Minister and his right hon. and learned Friend give that reply, and the others they have been giving this afternoon, to the workers of Ronson (UK) Ltd., who are now entering their second receivership this year, but who have been manufacturing a product for which there is world-wide demand?

Mr. Hayhoe

I make no comment on that matter, as I do not know the details. However, providing goods and services at the right price and of the right quality will generate demand for those goods, which, in turn, will lead to more jobs in making them. If wage increases reduce our competitiveness, the jobs will be lost.

Mr. Colvin

Further to the original question asked by the hon. Member for Ealing, Southall (Mr. Bidwell), has my hon. Friend had an opportunity to read the document to which the hon. Gentleman referred, known as "Labour's Programme 1982", which contains massive plans for reflation? Will my hon. Friend say what impact those plans would have on our economy and on our international competitiveness if the Labour Party ever had the opportunity to implement them?

Mr. Hayhoe

That is a hypothetical question, as that document will never be implemented. If a Government sought to implement such policies, it would lead to a massive increase in inflation and a consequent massive increase in unemployment.