Manufacturing

HC Deb 04 April 1995 vol 257 cc1509-10

1. Mr. Jacques Arnold

To ask the Secretary of State for Employment what are the latest figures for manufacturing employment. [16003]

The Secretary of State for Employment (Mr. Michael Portillo)

Manufacturing employment in Great Britain rose by 8,000 in the latest month, to stand at 4.3 million in January 1995.

Mr. Arnold

Does my right hon. Friend agree that those figures are extremely encouraging? What would be the impact on that increase in manufacturing employment if the social chapter and other measures beloved of the Labour party were imposed on this country? How relevant does my right hon. Friend consider the recent statement of the president of Daimler-Benz in Germany that if the imposition of the social chapter were continued and extended, there would be no manufacturing employment left?

Mr. Portillo

I consider it a substantial advantage to manufacturing employment in the United Kingdom that we do not subscribe to the social chapter. It is clear that inward investors value our membership of the European Union, but consider it very important that the costs of the social chapter are not imposed on us. Our duty as politicians and legislators should be to make it easy for one person to give another a job, rather than to impose burdens that prevent employers from creating jobs.

Mr. Chidgey

Does the Secretary of State agree that a key factor in sustaining and, indeed, increasing employment in our manufacturing industries is the development of a highly trained and highly skilled work force, and that the modern apprenticeship schemes could well play an important role in that? Does the right hon. Gentleman also agree that engineering apprenticeships should take priority over training and enterprise council funding plans relating to other, more easily achievable apprenticeships, so that we can achieve an increased and sustainable work force in manufacturing industry in the long term?

Mr. Portillo

I am pleased to hear a tribute to the Government's modern apprenticeship initiative from an Opposition Member. It is indeed an important initiative, raising skills to a level that is vital in industry.

I think that all the apprenticeships should be rigorous. People should be expected to achieve standards of excellence in the modern apprenticeship programme, and in national vocational qualifications. I do not believe that I myself should choose between one sector and another, but I agree with the hon. Gentleman that engineering is an extremely important sector of British industry.

Ms Harman

Does the Secretary of State admit that the reason why people are so concerned about the loss of manufacturing jobs—40 per cent. have been lost since 1979—is not just unemployment, but the low pay that goes with it? Does he not recognise that when manufacturing jobs are lost, the new jobs that replace them are often low paid? One million people in this country earn less than £2.50 an hour. Is that not a disgrace, and does it not mean that the Tory party is the party of low pay?

Mr. Portillo

I know that the hon. Lady does her research very carefully. She will know that, between 1974 and 1979, 609,000 manufacturing jobs were lost. If she has some magic solution, why were manufacturing jobs lost when her party was last in power? Why is it that it is only under this Government that the number of manufacturing jobs is rising?

If the hon. Lady is worried about low pay—despite the fact that real living standards have risen dramatically under this Government—will she commit herself to the minimum wage level that the Labour party would propose? The trade unions are pushing her on that, and we are pushing her on that. The Labour party must now come clean and tell us. It wants to promise a minimum wage but it does not want to put a figure to it. That is a dishonest posture. She should be ashamed of it.

Mr. Streeter

Will my right hon. Friend join me in welcoming the 1,000 jobs announced yesterday in south Devon by the Canadian company Nortel? They were won in the face of strong opposition from the United States of America and Mexico. Is that not just a massive vote of confidence in the far south-west economy, but a reminder that the United Kingdom remains a paradise for inward investment?

Mr. Portillo

We remain a paradise for inward investment. The long-term nature of that company's commitment in Devon shows that a strong belief exists that the country will sustain a Conservative Government who will keep us out of the social chapter in the long term.