Confederation of British Industry (Hansard, 14 March 1990)

§ 8. Mr. Haynes
To ask the Secretary of State for Trade and Industry when he next expects to meet the president of the Confederation of British Industry; and what matters he intends to discuss.

§ Mr. Douglas Hogg
I look forward to a continuation of constructive dialogue with the president of the CBI on matters relevant to the well-being of British business.

§ Mr. Haynes
Will the Minister take the opportunity to have a word with that dodo of a Secretary of State so that when he meets the CBI he appreciates the CBI's concern about investment in our manufacturing industry? The Government should be forced to help so that industry is competitive. Will he also have a word with the Secretary of State about the serious situation arising out of high interest rates which help to make our industry uncompetitive? The Minister should get his right hon. Friend up off his backside and let us have some industry working in the interests of the nation.

§ Mr. Hogg
I look forward to the discussion, as we shall begin by discussing the fact that in the three years ending in 1989 investment increased by around 40 per cent. As I have already said, that is the largest three-year growth since the war. I shall express my pleasure at that and I shall 470 go on to say that no doubt such investment is at least partly responsible for the fact that in the past 12 months unemployment in the hon. Gentleman's constituency has fallen by 30 per cent.

§ Mr. Dickens
When my hon. Friend next meets the president of the CBI will he ask him to congratulate his members on producing products that people want to buy, and which are of excellent quality, at competitive prices and are offered with good after-sales service and delivered on time? That is why the industrial base of our country is now outstripping the rest of Europe. We do not need any carping from the Opposition.

§ Mr. Hogg
I entirely agree with that. One of the extraordinary things about the Labour party is its willingness to denigrate British industry. I shall certainly congratulate the president of the CBI on the fact that exports are 11 per cent. higher than they were 12 months ago. That is an extraordinary achievement and it is proper to congratulate the CBI on it.

§ Mr. Gordon Brown
Now that the Secretary of State has virtually abandoned his responsibilities in relation to City fraud and is also winding down his responsibilities to the regions and even to export services, will the Minister at least wake up to the damage that his 15 per cent. interest rate policy is doing, particularly the 45 per cent. rise in business liquidations reported to the Lord Chancellor? Does he agree that a do-nothing Budget for industry will simply not do and will he urge upon the Chancellor an investment budget for industry and training which will help bring interest rates down?

§ Mr. Hogg
You will recall, Mr. Speaker, that, in last Tuesday's debate, I referred to the hon. Gentleman as having made a speech composed of stale jokes and ignorance—on this occasion he left out the stale jokes. The liquidations point is a good example of the hon. Gentleman's ignorance. He seems unaware that there are 60,000 more firms opening each year—that is the difference between the number closing and the number opening. In a dynamic economy there are both closures and new firms starting. At present, there are many more new firms than closures, representing a fourfould increase on the previous 10 years. That is a basic fact. The hon. Gentleman should do just a little more homework, please.