HC Deb 08 July 1992 vol 211 cc329-30
14. Mr. Austin Mitchell

To ask the President of the Board of Trade what was the level of manufacturing output in 1974, 1979, 1985 and 1991 with 1974 as 100.

The Minister for Industry (Mr. Tim Sainsbury)

Ninety-seven in 1979, 92 in 1985, and 103 in 1991.

Mr. Austin Mitchell

That is a fairly appalling record. I wonder whether the Minister knows of any country that has had a lower increase in manufacturing output, particularly in the past 13 years. How are we to recover? We have lost more than 500,000 manufacturing jobs since we joined the exchange rate mechanism. With the Government crippling manufacturing by high interest rates to keep the pound up, is this not a case of running the country on the basis of Maxwell economics—raiding the pension fund to support the share price?

Mr. Sainsbury

The hon. Gentleman seems to be joining his Opposition colleagues who spend their time running down the achievements of British manufacturing industry. It might help if he would read the CBI report, "Competing with the World's Best", which says: UK based manufacturers are well placed in some of the key growth markets of the future".

Mr. Batiste

Is it not clear that British manufacturing output benefits greatly as a consequence of Britain's having the lion's share of inward investment into the European Community from the United States, Japan and all other countries? Will my right hon. Friend dissociate himself from Opposition Members who take every opportunity to discourage inward investment from Japan and other countries?

Mr. Sainsbury

I am happy to join my hon. Friend in dissociating myself from the remarks of Opposition Members, to which reference has already been made. The scale of inward investment in this country proves that we have created the sort of environment which encourages manufacturers and entrepreneurs. It is disheartening to industry that the Labour party would seek to reverse all the progress that we have made in trade union law, taxation and deregulation, and would do its best to discourage British manufacturing industry.