§ 12. Mr. Norman Atkinsonasked the Chancellor of the Exchequer what representations he has received from the Confederation of British Industry about expanding the United Kingdom manufacturing base as a means of creating service employment.
§ Mr. Peter ReesNone, Sir.
§ Mr. AtkinsonDoes the Minister recall his answers to questions Nos. 1 and 2, when he referred to the CBI's expectations about the creation of a million new jobs by the end of 1985? Is the Minister further aware that the leading personalities of the CBI have now broken with their past mutual admiration for the Chancellor and have become increasingly critical of him? They now support the view of the Centre Forward group that the Chancellor has totally let down manufacturing industry by his opinion that it is totally irrelevant. Is he aware that they believe that he has failed to deliver the incentives that he promised manufacturing last year, with the consequence that those million new jobs will not be delivered by the end of the year?
§ Mr. ReesThe CBI can speak for itself. It is obvious that the hon. Gentleman did not attend the CBI dinner earlier this week, where he might have heard a different story. If the House doubts the Government's commitment to the manufacturing sector, I repeat the words of my right hon. Friend the Chancellor of the Exchequer to a Select Committee in another place:
the most important source of output and jobs and the more competitive it is, the better off we shall all be as a nation".My right hon. Friend was referring to the manufacturing sector.
§ Mr. SpeakerMr. Nicholas Winterton.
§ Mr. Nicholas WintertonI am somewhat surprised by your hesitation, Mr. Speaker. Does my right hon. and learned Friend accept, and will he assure the House, that he and his Front Bench colleagues realise that manufacturing industry is the real source of the wealth needed to create a permanent long-term increase in employment in the service sector? Will he therefore continue to promote policies that will ensure the future success of British manufacturing industry? In the textile and clothing industries, a leading industrialist has said that, given the right climate—
§ Mr. SpeakerOrder. The hon. Gentleman has demonstrated why I was hesitant.
§ Mr. ReesIt is not for me to come between the Chair and my hon. Friend on such delicate matters.
We do not believe that any one sector of the economy is contributing exclusively to the prosperity and success of the nation, but we recognise the importance of the contribution made by the manufacturing sector. To reassure my hon. Friend and the House of the success of that sector under the present Government, I remind them that manufacturing exports rose from £40 billion in 1983 to £46 billion last year.
§ Mr. BlairIs it not the case that our share of world manufactures since 1979 is down, as is our share of world trade and tradable services? Is it not about time that the Minister realised that the people want an industrial policy that addresses our problems and not an arrogant pretence that they do not exist?
§ Mr. ReesI can tell the hon. Gentleman one thing that he has overlooked. We have cut, rather than piled on, expenses for manufacturing, particularly the cost of employment in the manufacturing sector.