Industrial Production (Hansard, 9 July 1987)

§ 5. Mr. Patrick Thompson
asked the Chancellor of the Exchequer what are the latest figures for the growth of manufacturing productivity in the United Kingdom.

§ Mr. Lilley
In the three months to April 1987 manufacturing output per head is estimated to have been over 6½ per cent. higher than a year earlier.

§ Mr. Thompson
I thank my hon. Friend for that welcome reply. Is it true that the growth in manufacturing output per head in this country is now greater than in any other major industrial country, including Japan? Is it not also true that, under the last Labour Government, we were nearly bottom of that league? Therefore, is it any wonder that the hon. Member for Dagenham (Mr. Gould) should now have taken to praising the Government on their economic record?

§ Mr. Lilley
My hon. Friend is quite correct. The rate of growth of manufacturing productivity in this country has exceeded that in every major industrial country, not excluding Japan, since 1979.

§ Mr. Litherland
Does the Minister agree that investment by overseas multinationals in manufacturing in the United Kingdom is now declining and that the 30 top overseas companies show a massive reduction in employment?

§ Mr. Lilley
Investment overall in this country is at an all-time record. If a Labour Government had been returned, there would have been negative investment from abroad in this country.

§ Mr. Yeo
Does my hon. Friend agree that the 4 per cent. growth in manufacturing output per head since 1979 not only contrasts favourably with the preceding six years from 1973 to 1979 but bodes extremely well for the creation of new jobs in this country, because it shows that Britain is becoming competitive again, compared with countries overseas?

§ Mr. Lilley
My hon. Friend is quite correct. That growth bodes well for the future. Manufacturing industry is now increasing productivity. It is doing so because we have restored to management the power to manage and to trade union members the power to control their unions. As a result we have better industrial relations and greater incentives to increase production.