§ 8. Ms Sally Keeble (Northampton, North)If he will make a statement on his policy to promote improvements in the productivity of UK firms. [56865]
§ 12. Mr. Richard Burden (Birmingham, Northfield)If he will make a statement about his policy to promote productivity increases in UK firms. [56870]
§ The Paymaster General (Mr. Geoffrey Robinson)It has been clearly established by the Conservative party that there is a major and fundamental productivity gap between this country and others—our major competitors. It is a gap that we intend to close, in partnership with businesses and companies.
§ Ms KeebleMy hon. Friend rightly acknowledges the productivity gap between ourselves and our competitors. I am sure that, like me, he understands the fears of some workers, such as those at Barclaycard in Northampton, that the productivity gains needed to maintain a competitive edge might have an impact on job numbers. What can the Government do to mitigate those fears, and what would my hon. Friend say to the Barclaycard employees, most of whom are women?
§ Mr. RobinsonMy hon. Friend will be aware that we have engendered 400,000 jobs since the election and that, in her constituency, unemployment has dropped by 583, which represents a 23 per cent. drop. She will also be aware of the tremendous strides being taken by the welfare-to-work programme: despite the Opposition's position on that programme and their commitment to getting rid of it, we can now say that, through that programme, 30,000 people have gone into jobs. Throughout the country, 150,000 people are in the gateway, and we have partnership agreements with 29,000 companies. Those are the things that I would tell my hon. Friend's constituents, as I am pleased to tell the House today.
§ Mr. BurdenWhen we talk about the need for productivity improvements in the motor industry and elsewhere, contrary to what is said in some sections of the media, we are not making any allegations about so-called lazy workers. What we are talking about is essentially four things: first, the need for real partnership between management and work force to achieve productivity improvements; secondly, the need for the companies concerned—Rover and others—to put in the investment necessary for the companies to prosper; thirdly, the need for that process to be given Government backing; and, fourthly, the need for the banks to provide the right financial climate, one that is sensitive to the needs of manufacturing. Does my hon. Friend accept that we in the west midlands welcome today's cut in interest rates, we welcome the announcements on more help for business made by my right hon. Friend the Chancellor in the 1005 pre-Budget statement earlier this week, and we look forward to further action being taken at Rover and elsewhere?
§ Mr. RobinsonI very much agree with my hon. Friend, and the Government are conscious of the position of Rover, which is in his constituency. We have spoken of the Government bridging the productivity gap in partnership with business, but equally, management, together with the unions and the work force, must make a determined effort to do so. That effort is being made, but a good deal still has to be achieved before we can say that we are reaching the levels of productivity that we see in other countries. We shall do that together, it will need a determined effort, and I am sure that I can count on my hon. Friend to play his important role in that.
§ Mr. Tim Boswell (Daventry)In spite of the Government's somewhat idiosyncratic interpretation of socialism in one country as the unilateral abolition of boom and bust, does the Minister agree that the experience of his hon. Friends the Members for Northampton, North (Ms Keeble) and for Birmingham, Northfield (Mr. Burden), speaking about Barclaycard and Rover, shows the sad fact that economic downturns tend to mean that productivity increases are interpreted as a loss of jobs? Therefore, will he re-emphasise the message that is coming from Conservative Members to his right hon. and hon. Friend—that they should eschew all the additional tax and regulatory burdens on business, to the tune of £1,500 per worker, that are being imposed? Will he argue with his right hon. and hon. Friends that they must seriously sharpen up their act first?
§ Mr. RobinsonThe only act that really needs sharpening up is the performance of the Opposition's economic team, and, my word, that does need sharpening up.
I am sure that the hon. Gentleman will welcome the 22 per cent. drop in unemployment in his constituency and the 400,000 new jobs that we have created. I agree that we must cut the regulatory burden, and we are intent on doing that. Lord Haskins has embarked on a task force aimed at doing that by looking at building regulations and other matters. The simple fact is that the best contribution that we can make to British business is sustained stability—something that we are well on the way to achieving—and a cut in taxes, which are already the lowest in Europe at 30 per cent., with corporation tax at 20 per cent. That is a significant cut.
§ Mr. William Ross (East Londonderry)Is it not a fact that agriculture, above all British industries, has shown the most outstanding productivity increases during the past 50 years, yet finds itself in the most dire financial straits today? Given that the Government now intend to do all that they can to help employees on low incomes, what will be done for that industry?
§ Mr. RobinsonI am aware of last night's debate on that subject, in which the hon. Gentleman spoke. All who know anything about the farming industry know of its fine productivity record, particularly under the proficiency payments systems introduced by the first Labour Government after the war. We are considering those 1006 matters and my right hon. Friend the Minister of Agriculture, Fisheries and Food will make a statement to the House in the near future.
§ Mr. Dale Campbell-Savours (Workington)My hon. Friend will be aware that we are repeatedly being told that productivity levels in Germany are far higher than they are here in the United Kingdom. Why is that? What is so special about the German system that enables Germany to score far higher ratings than we do?
§ Mr. RobinsonI agree with my hon. Friend. It is puzzling that, in the past century, Germany has continued to outstrip Britain in productivity. Two important points that we can learn from the Germans emerged clearly from the series of seminars that we initiated. The first is that capital investment is much higher in Germany. There is no question about that. The second is that skill levels throughout the work force, from the management at the top right down to the technicians and the shop floor workers, are much higher in Germany, and its education system is geared to provide that. If we learn both those lessons and pool them, we can start closing the gap, and it is Government policy to do so.