Manufacturing (Hansard, 8 December 1993)

§ 3. Mr. Oppenheim
To ask the Secretary of State for Scotland if he will make a statement on manufacturing output in Scotland.

§ The Parliamentary Under-Secretary of State for Scotland (Mr. Allan Stewart)
The latest figures suggest that Scottish manufacturing output in the past year is 1.1 per cent. higher than in the preceding year. Manufacturing output in 1992 increased by 9 per cent. over the 1986 figures, which represents an annual growth rate of 1.4 per cent.

§ Mr. Oppenheim
Are not exports from Scotland expanding strongly, and does not that show that, although the Scots may have forgotten how to play rugby, they still know how to manufacture and to sell their products at home and abroad? Is not it a little surprising that Opposition Members do not spend more time praising Scottish achievements, which are in sharp contrast to the position under the Labour party in the 1970s, when manufacturing output fell?

§ Mr. Stewart
I trust that my hon. Friend's confidence in England's chances in the five nations championship is misplaced, but I am sure that he is right about Scotland's manufacturing export record, which is a tribute to not only Scottish management but the work force in Scottish factories. Scottish manufacturing exports were at a record of £9.7 billion in 1992 according to a survey by the Scottish Chamber of Commerce and the Scottish CBI. That is a real increase of 6.3 per cent.—a faster rate of growth than in the United Kingdom as a whole in five of the past six years. Frankly, I should have thought that Opposition Member would be proud of that.

§ Mr. Chisholm
How can the Minister be so complacent when there were heavy job losses in manufacturing 299 industry in 1992 and 1993, on top of 150,000 job losses in manufacturing since 1979? How can he be complacent about a figure of 1.1 per cent. growth in manufacturing output, which follows growth of only 4 per cent. since 1979, when the Conservative party came to power? How can he be so complacent following last week's Budget, which will knock on the head the already extremely weak recovery in the Scottish economy?

§ Mr. Stewart
I am not in any way complacent. Of course, challenges face Scotland and the Scottish economy. My right hon. and learned Friend's Budget has been widely welcomed by industry. The hon. Gentleman did not mention the fact that unemployment in Scotland is below the United Kingdom average for the first time since the 1920s, or that the seasonally ajusted total was 8,000 lower in October than in January. He did not mention the fact that civilian employment in Scotland has increased by 169,000 in the past 10 years. That is the reality of the Scottish economy, however much Opposition Members wish to talk down the achievements of Scottish managers and Scottish workers in facing the challenges of international competition.

§ Mr. Kynoch
Does my hon. Friend agree that Opposition Members seem to be oblivious of the fact that we have just come through a deep world recession, during which Scottish manufacturing industry was out there fighting and succeeding, and that the growth rates that he mentioned show a remarkable success in such times? Does he further agree that Scottish manufacturing industry has welcomed the Budget changes? Small businesses in particular welcome the changes to VAT and other areas.

§ Mr. Stewart
My hon. Friend is absolutely right. The VAT changes have been widely welcomed by small businesses, as has my right hon. and learned Friend the Chancellor's decision to freeze excise duties on Scotch whisky. My hon. Friend's more general point is also absolutely correct. Labour Scottish Members hate good news for the Scottish economy. They hate more jobs for the Scottish economy and they hate the fact that self-employment in Scotland is up 54 per cent. since 1979. They also hate the fact that real gross domestic product per head is up 30 per cent. since 1981. They do not wish to recognise the achievements of managers and workers in Scotland.

§ Mr. McLeish
The Minister is not only complacent but very confused. Over the past six quarters, manufacturing output in Scotland has gone down by 1.7 points. Does he appreciate that, according to his own figures, 20,000 manufacturing jobs have been lost in the past year—a mere 80 jobs every working day? Is he aware that the extra burden of the £2 billion of Tory tax increases that will be imposed on Scotland as a result of last week's Budget will do nothing to stimulate demand? When on earth will the cosy, complacent Scottish Office attack the real problem, which is that 250,000 people cannot find a job in Tory Scotland?

§ Mr. Stewart
Even by the hon. Gentleman's standards, that was not very good. I do not think that he listened to my answer, which was absolutely clear. Manufacturing output in the past year was 1.1 per cent. higher than in the preceding year. He did not quote the more recent evidence from business surveys such as the Scottish Chambers of Commerce survey and the Confederation of British 300 Industry's industrial trends survey in October, which showed an improvement in business confidence for the fourth consecutive quarter and increases in domestic and export orders in the past four months. The hon. Gentleman's constant campaign to talk down Scotland is not succeeding.