§ 9. Mr. Charles WardleTo ask the Chancellor of the Exchequer what are the latest figures for the growth of manufacturing productivity in the economy.
§ Mr. BrookeProductivity in United Kingdom manufacturing grew in the three months to February 1989 by 6½ per cent. on a year earlier.
§ Mr. WardleIs it the case that, for most of the 1980s, growth in manufacturing productivity has been faster in this country than in the other G7 countries, whereas, in the mid to late 1970s, we were at the bottom of the league? If growth in productivity is to continue, will it not require sane pay settlements, competitive manning levels, and sustained investment in new technology?
§ Mr. BrookeI can confirm the figures which my hon. Friend quoted. If he were to take the comparison back to 1960–70, he would also be accurate. I endorse also what he suggested as a recipe for continuing success.
§ Mr. HendersonDoes the Minister accept that manufacturing productivity is an inadequate test of economic success? Car companies such as Rover and Ford, which have improved manufacturing productivity, have been unable to meet current demands using component manufacturers in this country because of their lack of investment over the past 10 years. The improvement in manufacturing productivity in Ford and Rover has led to the sucking in of imports, principally from Europe.
§ Mr. BrookeI would be the first to agree with the hon. Gentleman that manufacturing productivity is not the end of the story. The story which I told was an outstanding one—one in which I should have thought that the hon. Gentleman would have taken pleasure in terms of the achievements of this economy.