HC Deb 19 April 1989 vol 151 cc320-1
2. Mr. Roger King

To ask the Chancellor of the Duchy of Lancaster what has been the growth in manufacturing productivity since 1979 (a) in Britain and (b) in other major industrial countries.

The Parliamentary Under-Secretary of State for Industry and Consumer Affairs (Mr. Eric Forth)

Between 1979 and the year to the third quarter of 1988, the latest period for which full international comparisons are available, manufacturing productivity, as measured by output per person employed, grew by 42 per cent. in the United Kingdom. The comparable figure for Italy is 38 per cent., for the United States 37 per cent., for Japan 31 per cent., for Canada 28 per cent., for France 26 per cent. and for the Federal Republic of Germany 17 per cent.

Mr. King

I thank my hon. Friend for that reply. Does he agree that those are truly outstanding figures of achievement by British manufacturing industry? Does he also agree that many overseas companies investing in this country are finding that the levels of productivity achieved by their United Kingdom subsidiaries are at least equal and often greater than in their own countries? Is it not a fact that the chamber of commerce in Germany has identified that as a major factor in investing in Britain?

Mr. Forth

Yes. My hon. Friend is correct to pay tribute to British manufacturing industry for its enormous achievements over the past several years. He is also right to recognise that it is the environment and framework provided by the Government that has enabled that to happen, and we should welcome it. We look for further improvements, but I believe that inward investment in Britain, such as the recently announced investment by Toyota, Fujitsu and Bosch are examples of how the productivity record in Britain is now so good that it is attracting people here in enormous numbers.

Mr. Madden

Will the Minister confirm that the British textile industry is one of the industries that has notched up considerable increases in productivity? Will he also confirm that the men and women who have co-operated in achieving that increased productivity have not had a fair share of the increased wealth that they have produced? Is he aware that their low basic rates of pay have created an over-dependence on excessive overtime working and that it is time that the men and women in the textile industry who have contributed towards increased productivity received a fair and proper share of the increased wealth they have created?

Mr. Forth

Any judgment as to what constitutes a fair and proper share should be established between the trade unions, if there are any, and the employers in a particular industry. Employers will see that it is right that the terms and conditions they offer their work force have to be acceptable and sufficient so as to attract enough labour to the company to enable it to continue. We all recognise the great strides that have been made by our textiles industries and hope that they will continue, even against a background of difficult trading conditions.

Mrs. Maureen Hicks

Does my hon. Friend agree that the vast improvement in productivity under this Government, whereby the average British employee produces 50 per cent. more than his counterpart in Japan, cannot have failed to impress and attract the Japanese and encourage them to choose the United Kingdom for Toyota —and what better location is there than the midlands?

Mr. Forth

My hon. Friend is correct to pinpoint that aspect because it is important that we continue to set an atmosphere of success and productivity. In that way we shall continue to attract the type of investment that we have announced this week, which will provide employment for our people and continuing success in our economy. We welcome those developments and are confident that they will continue.

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