Manufacturing Output (Hansard, 17 November 1982)

§ 3. Mr. Douglas
asked the Secretary of State for Scotland if he will make a statement on the level of output of manufacturing industry in Scotland.

§ Mr. Younger
The latest available index of industrial production for Scotland relates to the first quarter of 1982. In that period manufacturing output in Scotland was 0.6 per cent. higher than in the preceding quarter and was at its highest level since the third quarter of 1980.

§ Mr. Douglas
Will the Secretary of State try to help Scotland during discussions in the Cabinet? Is it true that he is peculiar in taking some responsibility for the levels of unemployment and employment in manufacturing industry in Scotland, whereas the Government take credit for controlling the rate of inflation, but take a "hands off' attitude towards the levels of employment and unemployment?

§ Mr. Younger
I am not sure what the hon. Gentleman means. I have always made it clear that I regard myself as having an overriding responsibility for the Scottish economy. Perhaps hon. Members on both sides of the House will accept that I have done my best to fulfil that responsibility.
The reduction in inflation and in interest rates is critical to the survival of every business in Scotland. I fight in the Cabinet to encourage my colleagues to continue on their present course.

§ Mr. Bill Walker
Does my right hon. Friend agree that output can continue only if factories are actually working? Are not unnecessary strikes, coupled with irresponsible wage demands, accounting for more lack of production and of competitive performance by Scottish manufacturing industry than any other factor since the war?

§ Mr. Younger
My hon. Friend is right. It is sad that it has taken so long for some employees in factories in Scotland to appreciate that if they strike today they may lose their jobs tomorrow.

§ Mr. Buchan
Has the Secretary of State seen the recent announcement from Babcock Power Ltd. of 480 redundancies? Is that not a terrible omen for the future level of manufacturing industry, as that company is one of the main energy providers in Britain? Will the right hon. Gentleman bring forward the orders for new power stations and the refurbishing of existing power stations? Otherwise, that industry will not exist when a Labour Government return and have to pick up the remains of manufacturing industry.

§ Mr. Younger
I share the hon. Gentleman's worry about the situation at Babcock's. As he knows, I have had discussions with representatives from that company. I respectfully disagree with his remedy. The salvation for Babcock's depends upon obtaining orders from overseas. We are doing everything possible to help the company to win such orders. However, Britain has a surplus of capacity at power stations, so it is hardly likely that the company will gain much business there.