Manufacturing Industry (Hansard, 23 November 1994)

§ 11. Mr. Pawsey
To ask the President of the Board of Trade what is the estimated size of the United Kingdom manufacturing industry measured by its contribution to the gross national product in the current year; and what it was in 1991.

§ Mr. Heseltine
The share of manufacturing in GDP was 21.9 per cent. in 1991 and 21.7 per cent. in 1993. Since 1991, manufacturing output has increased by 5.7 per cent.

§ Mr. Pawsey
I thank my right hon. Friend for that helpful reply. Notwithstanding earlier comments made in the Chamber, will he join me in congratulating GEC-Alstom on its outstanding success in winning overseas orders, often in the face of intense competition? Will he further congratulate GEC on the quality of its management, its well-trained and well-motivated work force and the quality of the products that are made in my constituency of Rugby?

§ Mr. Heseltine
My hon. Friend is right to draw the House's attention to the excellent products that are made in his constituency. He will understand if I do not go too far down the road that he invites me to take because, in the context of the dialogue in the House this afternoon, I should not want to indicate that I am in any way prejudiced in matters that might come to my attention.

Dr. Cunningham
Instead of comparing 1991 with 1993, why does not the right hon. Gentleman tell the House about the contribution of manufacturing industry and its decline over the past 15 years? Why does not he admit that, in 1979, manufacturing industry contributed 28.5 per cent. to our gross national product whereas, by last year, its contribution had fallen to 21.7 per cent.—a fall of almost 25 per cent.—while at the same time the manufacturing industries of our competitors in Germany, Japan and the United States of America were all growing? That is a measure of the failure of his policies.

§ Mr. Heseltine
When the right hon. Gentleman has had time to do some more homework, he will find that manufacturing, as a share of the economy in this country, has been falling for the past 40 years. He will also find that it has been falling consistently in our competitor economies. If he really wants to understand what is happening in some of the world's most successful economies, I should tell him that in Hong Kong manufacturing now makes up only 15 per cent. of the economy. The right hon. Gentleman must understand that the arcane ideas that one can fossilise an economy of yesterday's industries are totally out of date.

§ Sir Michael Grylls
Does my right hon. Friend not find it strange that the Opposition are incapable of paying compliments to people who work in British industry? I understand that the British machine tool industry has announced that it has achieved an 18 per cent. increase in its exports and that we shall have a favourable balance of trade in machine tools. Should not the Opposition be pleased about that, rather than attacking us?

§ Mr. Heseltine
My hon. Friend is right that Opposition Members do not give the support to British industry and British commerce that they deserve. In order to help them on their way, perhaps they will join my right hon. and hon. Friends and I in welcoming today's excellent news 592 for Humberside—that, as a result of a £10 million grant from my Department, Courtaulds has announced that approximately £100 million will be invested to develop a new textile fabric based on tensel, which is one of the most exiting innovations that has taken place in that industry for many years.