§ 3. Mr. Peter Lloydasked the Chancellor of the Exchequer what assessment he makes of the effect of his policies on the current rate of increase in industrial productivity.
§ The Chief Secretary to the Treasury (Mr. Peter Rees)Output per head in manufacturing rose by 6 per cent. in both 1982 and 1983 and is now at a record level, being 23 per cent. higher than at the end of 1980.
§ Mr. LloydThat is impressive history, but does my right hon. and learned Friend agree that we are reaching the stage in the cycle when various bottlenecks, such as skill shortages, normally begin to make themselves felt?
§ Mr. ReesThat is a risk, and it is a factor underlying the notable efforts of my right hon. Friends the Secretaries of State for Employment and for Education and Science to try to improve our performance.
§ Mr. HunterIn the light of the most welcome increase in our exports of manufactured goods and the even greater increase in imports of foreign goods, will my right hon. and learned Friend comment on the desirability of a lower overall exchange rate, especially vis-a-vis European currencies, before there has been a significant decrease in our North sea oil revenues?
§ Mr. ReesMy hon. Friend will be aware that the Government do not believe in a managed exchange rate. Manufactured export volumes are up by 9 per cent. over the year to the three months ending April 1984, which demonstrates that our export performance is still robust.