§ 8. Jacqui SmithIf she will make a statement about the priorities of her Department in promoting competitiveness during the British presidency of the European Union. [31134]
§ Mrs. BeckettImproving competitiveness is central to improving prosperity in both the UK and more widely in the European Union. It lies at the heart of our presidency theme of economic reform. All my EU priorities, particularly the central objective of improving the single market, are ultimately aimed at improving the competitiveness of EU industry. In the coming months, I will work to ensure that competitiveness becomes more central to EU policy making. Specifically, in the Industry Council, which I shall chair, Ministers will, for the first time, have a full discussion about the key factors that affect EU competitiveness, and about how Governments and business can work together to improve it. Next week, I will talk to the European Parliament on that very subject.
§ Jacqui SmithDoes my right hon. Friend agree that it is by working with our European partners that we can best pursue our British interests? Did not the previous Government's half-hearted approach to all things European, and the remarks of the right hon. Member for Wokingham (Mr. Redwood) about Chancellor Kohl, greatly damage the interests of British business, consumers and workers?
§ Mrs. BeckettMy hon. Friend is correct. The right hon. Member for Wokingham (Mr. Redwood) has displayed, yet again, his extraordinary talent for alienating several groups of important people at one fell swoop. He managed simultaneously to insult the corporation of the City of London, which was not amused to be told to whom to give the freedom of the City, and a leading figure in a major ally with substantial investments in this country. Almost 50,000 British jobs are in German-owned companies, including some 14,000 that came in recent years. He has, yet again, shown his complete disregard for the interests of Britain.
§ Mr. Nicholas WintertonThe right hon. Lady will be well aware of my deep commitment to manufacturing industry. She and I have spoken on the same platform in support of it. While I fully support her determination and that of the Government to increase our competitiveness in the world market, does she agree that some of the policies that her Government are following—allowing the Bank of England unnecessarily to increase interest rates, the social chapter, the minimum wage and the Government's vendetta against the transport industry—are hardly likely to make British industry more competitive in Europe and the world? May I remind her that transport costs in Europe are already less than in Britain, and that in the Budget in about a week's time, the Chancellor will increase the cost of transport?
§ Mrs. BeckettThe hon. Gentleman knows that I share his concern for manufacturing and have great respect for his record at least, if not that of the former Government, on manufacturing. Of course we understand the concerns that some manufacturers are expressing, although, as the hon. Gentleman will know, those who are operating in the 1188 dollar market are not affected in quite the same way. We are in no doubt that the steps that my right hon. Friend the Chancellor has taken to put interest rates in the control of the Bank of England will, in the long term, be beneficial to British business—a view shared by the business community. Neither the social chapter nor the national minimum wage will damage business, especially not manufacturing.
It is certainly the case that there is great concern among manufacturers about the state of the transport infrastructure. Indeed, it was one of their chief concerns in respect of reduced competitiveness during the lifetime of the previous Government. This Government will begin to address it.
§ Mr. WinnickOn competitiveness, is it really desirable that one or two individuals should own such vast media outlets, bearing in mind what has just happened to Mr. Patten's book? Would it not be far more desirable to have more competition in the media? I hope that my right hon. Friend will bear very much in mind what has happened over Mr. Patten's book when she considers the appropriate legislation on the media.
§ Mrs. BeckettAs my hon. Friend will know, the Government have taken action to begin to strengthen competition law. I share his view that it is important that there is strong competition in all areas of the marketplace, including in the newspaper industry.
§ Mr. RedwoodGiven that the overwhelming majority of businesses in this country are small—serving a local, regional or perhaps national market—does the right hon. Lady agree with many of them that a single currency would be all cost and no benefit because they do not deal in francs or deutschmarks?
§ Mrs. BeckettNo, I do not agree with the right hon. Gentleman. What is more, neither do a great many people in his party agree. It is evident that on this issue, after the election as before it, the Conservative party is utterly divided. Many of its members, like the right hon. Gentleman, are deeply irresponsible and utterly unfit to hold office again.