HC Deb 23 November 1994 vol 250 cc583-4
4. Mr. Burden

To ask the President of the Board of Trade what assessment he has made of the contribution of co-operation between employers and employees to the performance of the motor industry.

The Minister for Energy and Industry (Mr. Tim Eggar)

In recent years, both existing vehicle manufacturers and inward investors have transformed working practices. That has led to very significant improvements in productivity and quality. Those changes have also fed down the supply chain to component suppliers.

Mr. Burden

Surely the Minister accepts that the hallmark of the really successful motor manufacturers recently, such as Rover in my constituency, has been the fact that they work closely with the trade unions representing the work force, that they value collective agreements and realise their validity, and that they have conditions of service well above the social chapter minima and low-pay thresholds. Does that not show just how bogus is the Government's approach of aclvocaling low wages and union bashing?

Mr. Eggar

I confirm that the number of working days lost through industrial action has decreased dramatically since 1979—from 29.5 million days then to 649,000 days last year. That is a credit to the industrial relations changes brought about by the Government which the Labour party consistently opposed.

Mr. Anthony Coombs

As the motor industry makes such a major contribution to manufacturing industry in the west midlands, which itself accounts for more than a third of exports from Britain, is it not encouraging that a recent CBI survey of the west midlands shows that no fewer than 80 per cent. of companies expected an increase in sales in the next three years and 60 per cent. expected an increase in exports? Would that not be jeopardised by the huge rise in business taxation which the Opposition expect will increase by no less than 50 per cent. at a stroke?

Mr. Eggar

My hon. Friend is absolutely right. The worst thing that we could do in terms of inevitably reversing the present trend towards increased competitiveness by British industry would be to take on board the burdens of minimum wages and joining the social chapter, which is exactly what the Opposition advocate.

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