§ 20. Sir David KnoxTo ask the President of the Board of Trade when he next expects to meet the President of the Confederation of British Industry to discuss manufacturing industry. [2619]
§ Mr. LangOther Department of Trade and Industry Ministers and I regularly meet the Confederation of British Industry to discuss a range of issues.
§ Sir David KnoxWill my right hon. Friend confirm that a major objective of Government policy is to prevent wild fluctuations in the exchange rate, as both upward and downward movements are especially detrimental to the manufacturing sector? Will he discuss that matter with the president of the CBI in the near future?
§ Mr. LangMy hon. Friend makes an important point. Obviously, we are conscious of the effect that such fluctuations can have on manufacturing industry. However, my hon. Friend will have heard the points made earlier in support of the great successes of manufacturing industry in recent years. Employment in that industry has risen by 28,000 in the past year alone. In the past two years, investment in manufacturing has risen by no less than 20 per cent. That is a sign of a flourishing and successful manufacturing industry, something that was never experienced during the Labour party's period in government.
§ Mr. SheermanThe President of the Board of Trade and his team today have been extraordinarily pleased with themselves and terribly complacent. Why is it that, after 16 years of Conservative government, only 2 per cent. of British manufacturing enterprises are rated as world-class?
§ Mr. LangMy right hon. and hon. Friends and I are not complacent but proud of what has been achieved by 369 our manufacturing industry in Britain in recent years. The Labour party is always ready to talk about the disappearance of this country's manufacturing sector. The fact is that manufacturing output is higher now than ever before. That is a measure of the progress that has been achieved in recent years.
§ Mrs. Ann WintertonDoes my right hon. Friend discuss with the president of the CBI the impact of the minimum wage and of the social chapter on on-costs in this country's industry, and how it would affect our at present successful export business, which exports mainly to the world's growing economies?
§ Mr. LangMy hon. Friend is absolutely right. The only way our manufacturing industry will continue to survive and prosper is if we remain globally competitive. That is a measure of our achievements in recent years. The imposition of a national minimum wage would make our industry much less competitive. The CBI estimates that it would impose a burden of £4.5 billion on our industry. If only half the differentials were restored above a £4 minimum wage, it would cost about 900,000 jobs in this country. I am quite sure that a national minimum wage would be greatly to the detriment of employment and prosperity in the United Kingdom.