§ 5. Mr. CummingsTo ask sthe Secretary of State for Trade and Industry what plans he has to boost manufacturing output.
§ The Minister for Industry (Mr. Douglas Hogg)The most important spur to the significant output growth by British manufacturing industry since 1989 has come from the competitive pressures of more open markets. The Government continue to promote this objective with policies such as privatisation, deregulation, elimination of restrictive practices and international negotiations to reduce trade barriers through the GATT 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. CummingsDoes the Minister realise that the United Kingdom is teetering on the brink of another recession? Does he further realise that the latest official figures for closures show that there has been an increase of 70 per cent. in winding-up petitions for businesses as compared with the third quarter of last year? In view of those alarming trends, what comfort can the Minister offer to industrialists and the unemployed in Easington?
§ Mr. HoggIt is perfectly true that we have been witnessing a slowdown in economic activity. That is a necessary prelude to the reduction of inflationary pressures in the economy. But it must be seen in the proper 975 context which, to the hon. Member for Easington (Mr. Cummings), is this: unemployment in his constituency has fallen by 21.4 per cent. over the past 18 months, and by 10.8 per cent. over the past 12 months. As to the broader perspective since 1981, output in manufacturing industry has improved by 32 per cent., which contrasts with a fall under Labour between 1974 and 1979.
§ Mr. Brandon-BravoOne of the biggest manufacturers in Nottingham is Raleigh Industries, which manufactures probably the world's most famous marque in cycles. My right hon. Friend the Secretary of State agreed to have a look at the correspondence initiated with his predecessor on the impact of Chinese imports into this country and how they affect one of our most efficient manufacturing industries. Will my hon. and learned Friend the Minister undertake to have a serious look at that before it becomes a real problem?
§ Mr. HoggVery few people are more enthusiastic about bicycles than I am. Therefore, I shall ensure that my hon. Friend the Minister for Trade, who is sitting beside me, pays the fullest regard to my hon. Friend's point.
§ Mr. James LamondHow can we hope to expand manufacturing industry when firms like Hurley-Moate and Cobden Chadwick in Oldham are falling like ninepins? Is the Minister aware of the comments by Mr. Peter Maybury, a past president of Oldham chamber of commerce and trade, who referred to the Government's lunatic economic policies and mickey-mouse financial structures? When will the woman in Downing street realise that there is a recession on? Instead of complacently shouting and bawling at the Dispatch Box, should not the Minister take a trip to the north-east—as his father did, with his cloth cap on—and see the position of manufacturing industry? He can ask his friends in commerce and industry there how they feel about it.
§ Mr. HoggThe hon. Gentleman will no doubt be the first person to greet me when I visit the north-east on Thursday. I go there nearly every six weeks, as the hon. Gentleman knows. As he clearly does not know the area, I can tell him that the economy of the north-east is extremely buoyant, the number of jobs is increasing rapidly and the people have very good morale. I suggest he goes there.
§ Mr. GryllsWill my hon. and learned Friend make it clear that if there is increased output and productivity in industry, everyone should be happy to see higher wages because those higher wages will have been earned?