Competitiveness UK Initiative

HC Deb 14 May 1998 vol 312 cc513-4

14. Dr. Stephen Ladyman (South Thanet)

If she will make a statement about the progress of her Competitiveness UK initiative. [40966]

The President of the Board of Trade and Secretary of State for Trade and Industry (Mrs. Margaret Beckett)

I set up six business-led working parties last year to look specifically at the weaknesses in United Kingdom companies' performance identified in "A Benchmark for Business", which I published in November 1997. The working parties are examining underinvestment, failure to innovate and to adopt best practice, shortage of skills in the work force, and failure to capitalise fully on the opportunities provided by the information age and by our membership of the European Union. Their work will contribute to a White Paper on competitiveness, to be published in the autumn. In parallel, my right hon. Friend the Chancellor of the Exchequer and I met senior business people this morning in the first of a series of seminars to discuss how to bring about improvements in UK productivity.

Dr. Ladyman

Does the President agree that, under the Tories, too many companies came to believe that, to achieve competitiveness, all they had to do was to cut staff and wait for a devaluation? How does my right hon. Friend plan to convince companies that the only way to achieve competitiveness is to invest in their staff, in new equipment and in research and innovation? In doing that, will she use as an example Pfizer, a company in my constituency—my former employers, in fact—whose huge investment in research has created the world's greatest drug discovery team—

Madam Speaker

Order. I could give the hon. Gentleman an Adjournment debate if he wishes—but now I want to move on through the Order Paper. Come along.

Dr. Ladyman

Will my right hon. Friend use as an example of good practice the innovations of Pfizer, whose great team has discovered Viagra, which has been much publicised and is, I suspect, eagerly awaited in all parts of the House?

Mrs. Beckett

My hon. Friend is entirely right about the importance of the factors to which he drew attention in terms of investment in skills as well as in a variety of other ways. One of the issues that we discussed this morning with business—and will continue to discuss with the business community—is how to get those messages across throughout English business, including small and medium-sized businesses. There seems to be general agreement that a combination of best practice, mentoring and, in particular, business people themselves spreading the word down the supply chain, seems likely to produce the most effect. We are continuing to discuss the issues. I am aware of the tremendous reputation of Pfizer, which has substantially increased its inward investment in this country since the Government came to power.

Mr. David Prior (North Norfolk)

Does the right hon. Lady believe that the compulsory recognition of trade unions will improve the competitiveness of British industry?

Mrs. Beckett

The hon. Gentleman is labouring under a misapprehension. The Government will introduce a framework of legislation to bring about the recognition of trade unions should a majority of the work force wish. That is a simple human right, and I am surprised that the hon. Gentleman opposes it.