HC Deb 05 December 1990 vol 182 cc290-2
4. Mr. Battle

To ask the Secretary of State for Trade and Industry what plans he has to boost manufacturing output.

Mr. Leigh

The Government promote continued growth of manufacturing industry with policies such as reducing rates of tax on profits, privatisation, deregulation, elimination of restrictive practices, trades union reform and negotiations to reduce trade barriers through the general agreement on tariffs and trade and in the European Community. In addition, my Department continues to operate a range of schemes to improve business performance under the enterprise initiative.

Mr. Battle

When the regional Confederation of British Industry and the Leeds chamber of commerce predict a bleak mid-winter for manufacturing as a direct result of the Government's policies, does not that suggest that those policies are not working? What practical action will the Government take to arrest the manufacturing decline in Leeds? Will the welcome, positive developments in the finance, service and business sectors be at the expense of engineering, printing and textiles, and costed in rising unemployment in my constituency?

Mr. Leigh

What a pity it is that Opposition Members always want to talk down British industry. They fail to say that, in the past decade, output in manufacturing has increased by a quarter, compared to what happened under a Labour Government, when it fell. This Government recognise that manufacturing output depends critically on profitability and competitiveness which, under the Government, are at record levels.

Dr. Blackburn

Will my hon. Friend take the opportunity to pay a warm and generous tribute to manufacturing industry in the west midlands, which is still buoyant, particularly the hand-cut crystal glass industry, which is worthy of commendation?

Mr. Leigh

I am grateful to my hon. Friend. He is a fine champion of British industry, particularly industry in the west midlands.

Mr. Hoyle

If the Minister would reflect for a moment on his foolish remark that the Opposition are not concerned about manufacturing industry, he might realise that in the 1980s, 30 per cent. of it was destroyed by a Conservative Government and we are once more in a recession, with manufacturing industry going to the wall. Would not it be more positive if he were to make representations to his right hon. Friend the Chancellor of the Exchequer to reduce interest rates, which would give manufacturing industry the boost that is sorely needed under this Government?

Mr. Leigh

It does not help argument in the House for hon. Members grossly to overstate the case as the hon. Gentleman has done. He failed to say that, in the medium term, the prospects for British industry are excellent clue to the completion of the single market and the creation of new markets in eastern Europe. He also failed to say—and I shall repeat the point because he clearly was not listening to my earlier answer—that, contrary to what Opposition Members would have one believe, manufacturing output has increased by a third under the Government. Moreover—I am happy to go on giving the Opposition statistics—manufacturing productivity and export volume are 60 per cent. higher after a decade of Conservative Government.

Mr. Oppenheim:

Will my hon. Friend remind Opposition Members that all the simplistic interventionist formulae and subsidies were tried and failed in the 1950s, 1960s and 1970s? Will he remind them again that, the last time they were in power, manufacturing output fell, whereas in the 1980s, when this Government meddled less in industry, manufacturing output not only rose, but did so faster than in any other European country?

Mr. Leigh

I am grateful to my hon. Friend, who makes his point very well.

Mr. Gordon Brown

Will the Minister confirm that manufacturing output is down by £.1.5 billion in one quarter? Will he also confirm that, with jobs losses in steel, aerospace and hundreds of small businesses, Britain has suffered a loss of 2 million manufacturing jobs under this Government? Why are the Government compounding their high interest rate errors by cuts in training, technology and regional incentives? Now that we have a change of Prime Minister, what changes will there be in industrial policy?

Mr. Leigh

I will tell the hon. Gentleman what is happening to British industry. Overall, employment in this country is at record levels, with 27.5 million people in work.

The hon. Gentleman talked about this year; I shall give him some more statistics, as he is clearly a glutton for them. In the first three quarters of this year, manufacturing output was still 25 per cent. up on 1980, and productivity is up considerably. Surely that is a record of which to be proud. It is important that we should not ditch our policies, as Opposition Members would, and that we persevere because they are the only policies that will result in keeping down inflation—the single greatest barrier to competitiveness in British industry and to creating real long-term jobs.

Sir Hal Miller

Will the Minister confirm that, far from the Opposition's suggestions of a decline in engineering being true, the motor industry is increasing production to export and is planning to double productive capacity over the next three years? Will he and his right hon. Friend ensure that the industry's efforts are not frustrated by attempts in the European Community to limit exports of British-made vehicles to our Community partners?

Mr. Leigh

My hon. Friend makes his point very well. An interesting recent study shows that output in car manufacturing will shortly rise to a record level of 2 million—we can be proud of that. I certainly acknowledge my hon. Friend's point; as he knows, we make it vigorously to the European Commission.