HC Deb 16 April 1986 vol 95 cc868-9
13. Mr. Eastham

asked the Secretary of State for Trade and Industry if he will make a statement on the level of investment in manufacturing industry.

15. Mr. Ernie Ross

asked the Secretary of State for Trade and Industry if he will make a statement on the level of investment in manufacturing industry.

Mr. Peter Morrison

Investment in manufacturing rose by more than 6 per cent. in 1985 and was 22 per cent. higher than in 1983. The underlying reasons behind manufacturing investment—sustained growth in the economy, buoyant profits improved profitability and a low rate of inflation—remain favourable.

Mr. Eastham

As I am from the engineering industry may I draw to the Minister's attention the plight of the United Kingdom shipbuilding industry? If he examines Lloyd's Mercantile Register, he will discover that we are no longer even in the top 10 for shipbuilding, but are about 17th. That means that places such as Poland and China are higher in the league than we are, and that more than 50 per cent. of all shipping tonnage is now being built in Japan. What will the Minister do about Britain?

Mr. Morrison

The hon. Gentleman is not giving sufficient credit to what British Shipbuilders has achieved. Equally, he will be aware that there is a slump in shipbuilding at present in Korea, Japan and whatever other part of the world one considers.

Mr. Ernie Ross

Did the Minister see the "Money Programme" last Sunday? Does he agree with the owner of Amstrad that the European Community tariff structure on electronics, especially the import duty on semiconductors, is a further disincentive to creating jobs and procuring investment in our computer industry? What does he intend to do about it?

Mr. Morrison

As I did not see the "Money Programme" last Sunday, it is difficult to comment precisely. I accept that it is important that one should have a fair trading basis.

Mrs. Peacock

Will my hon. Friend encourage his regional office in Leeds to give grants to firms in my constituency to retain jobs and create new ones, rather than encourage them to relocate in Darlington?

Mr. Morrison

My hon. Friend calls into question our regional aid policy, which is directed at job creation in those parts where the level of unemployment is high, relatively speaking.

Mr. Litherland

Is the Minister aware that such a famous firm as GEC Switchgear in my constituency is shedding 300 jobs before the end of the year? Is he aware that that will occur in an area with 40 per cent. male unemployment and where we have lost 19,000 jobs? When will he do something for British industry, as foreign Governments do for their industries?

Mr. Morrison

The hon. Gentleman will be aware that the Government and a company such as GEC work closely together to win orders, which, indeed, they succeed in doing.

Mr. Watts

Can my hon. Friend comment on the investment record of foreign-owned companies in this country? Can he confirm that their investment per employee is double that of British-owned manufacturing companies? Is that record not relevant in view of the recent "Little Englanderism" that we have seen from the Opposition Benches?

Mr. Morrison

I can certainly confirm that the investment from foreign-owned companies is substantial. I agree that we discuss foreign investment in the way that it has been at our peril, because we are in danger of driving it away from the United Kingdom, and that is not good for jobs.

Mr. John Smith

Will the Minister tell the House whether the Government have an industrial strategy, and if so what it is?

Mr. Morrison

The right hon. and learned Gentleman knows perfectly well that our strategy is to create the right climate for industry to prosper, and my original answer proves that that is precisely what is happening.