Manufacturing Industry

HC Deb 12 March 1986 vol 93 cc920-2

2. Mr. Knox

asked the Secretary of State for Trade and Industry what is the most recent figure for output in manufacturing industry; and how this compares with the figure for the same month six years ago.

The Minister of State, Department of Trade and Industry (Mr. Peter Morrison)

In the fourth quarter of 1985 the index of production for manufacturing industry stood at 105, based on 1980 equal to 100. This is 5 per cent. lower than for the corresponding period of 1979. However, between 1981 and 1985 manufacturing output rose by 11 per cent.

Mr. Knox

Does my hon. Friend not find it alarming that the output of manufacturing industry is lower today than it was six years ago? Why does he think that has happened?

Mr. Morrison

Yes, I find it alarming, but my hon. Friend will have heard what happened between 1981 and 1985, when we had great successes in manufacturing industry.

Mr. Norman Atkinson

Is the Minister aware that in the same period, when there was a production output drop of 5 per cent., there was a reduction in the work force of 22 per cent. or just short of 1,500,000 people? Should he not now pay tribute to the work force for having achieved such high output and production when wage levels have fallen by 18 per cent. over the same period?

Mr. Morrison

I certainly pay tribute where there have been significant productivity improvements. As the hon. Gentleman will be aware, productivity in manufacturing since 1980 has increased by 29 per cent., which is a great tribute to many people, including the work force.

Mr. Brandon-Bravo

Does my hon. Friend agree that some aspects of our regional policy have merely transferred jobs in manufacturing from one part of the country to others where there are fewer manufacturing jobs? Will he reconsider the position in my constituency, where two major engineering companies have lost labour to smaller units in south Wales and the north-east? Surely that cannot be practical politics.

Mr. Morrison

I do not know the precise position about the two companies to which my hon. Friend referred, but I assure him that we consider the matter extremely carefully. I hope he will agree that the direction of regional policy to areas of high unemployment is right.

Mr. James Lamond

Is the Minister aware that he can help manufacturing industry, especially the textile industry, by ensuring that a good, strong, protective multifibre arrangement mandate is given to those who are negotiating on our behalf?

Mr. Morrison

Yes, I am aware of that, and I have great confidence in my hon. Friend the Minister for Trade. I am also aware that since 1979 some £7.3 billion has gone into manufacturing as a whole. That confirms the Government's commitment to it.

Mr. Beaumont-Dark

Does my hon. Friend accept that we are all pleased to see that the figures for manufacturing output are increasing, not least in Austin Rover and the Land Rover group? Although he has said that they may not expect any favours, does he agree that they may at least expect fairness, so that Britain can continue with a high manufacturing output for the good of the nation?

Mr. Morrison

As my hon. Friend knows, my right hon. Friend the Secretary of State and I have paid tribute to the great strides which have been made throughout the whole of British Leyland.

Mr. John Smith

I congratulate the Minister on having the courage to be one of the few Ministers to come to the Dispatch Box and admit that the fall in manufacturing output during the past six or seven years of Conservative government is alarming. What do the Government propose to do to change that alarming position? When will we see manufacturing output rise to the level which the Government inherited all those years ago and all that North sea oil ago?

Mr. Morrison

The right hon. and learned Gentleman quoted me a little out of context, but I am grateful to him for the compliment. I pointed out the figures between 1981 and 1985, which showed a significant improvement. I am sure he will have noticed that there is enormous confidence by international and domestic investors in terms of the stock exchange—[Interruption] That is correct. It is investing in the future of Britain's manufacturing sector.