HC Deb 15 July 1999 vol 335 cc549-52
3. Mr. Nick St. Aubyn (Guildford)

How many jobs have been lost in manufacturing industry since 1 May 1997. [90009]

The Secretary of State for Trade and Industry (Mr. Stephen Byers)

In the two years between April 1997 and April 1999, 118,000 manufacturing jobs were lost, compared with an annual average loss of 150,000 manufacturing jobs in each year between 1979 and 1996.

Mr. St. Aubyn

We have already heard how the index of the World Economic Forum, based in Geneva, has shown that we have dropped under this Government from our zenith of fourth in the world competitiveness rankings to eighth. Which of the Department's measures have most contributed to that loss of competitiveness and how many more jobs will have to be lost before they are reversed?

Mr. Byers

The hon. Gentleman ignores the fact that the labour market figures published yesterday show that more people are working in this country than ever before. I would have hoped that he would welcome this morning's report from British Chambers of Commerce showing manufacturing orders up, which is good news for the manufacturing sector. We are witnessing a clear trend of strength not only in the service sector and construction, but now in manufacturing as well. That is because we are steering a course of economic stability in an uncertain world.

Mr. John Healey (Wentworth)

It is not the past two years that bother people in Rotherham; it is the two preceding decades that they cannot forgive, when we lost nearly 12,000 manufacturing jobs in metal-working industries alone.

Despite the pressure that manufacturing is under, will my right hon. Friend pay tribute to the work of local agencies such as the Rotherham industrial development office, which is bringing new jobs to our area at firms such as Toyoda Gosei, the Japanese car company in the constituency of my hon. Friend the Member for Rotherham (Mr. MacShane), and the United States tool manufacturer, Morgan Leigh, at Hellaby in my constituency?

Mr. Byers

I am very pleased to endorse the excellent work carried out by many agencies, including those in Rotherham. During my visit to Japan, when we formally announced the decision of Toyoda Gosei to locate in Rotherham, creating about 400 jobs, it struck me that one of the reasons why it was so enthusiastic was that it could see a real sense of partnership in the agencies in Rotherham. That stands in stark contrast to the situation under the previous Government, when on average 150,000 manufacturing jobs were lost every year from 1979 to 1996. That is the Conservative record in office.

Mr. Richard Page (South-West Hertfordshire)

Is the Secretary of State aware that several Labour Members are calling the climate change levy the industrial equivalent of the poll tax? When will his Department argue with the Department of the Environment, Transport and the Regions and the Treasury that any changes must be sustainable, otherwise they are not worthwhile? Is he not aware that if those changes take place, they will mean the loss of tens of thousands of jobs and a reduction in production in this country that will lead to imports coming in that have been made by processes that would not be allowed here? When will he fight for British industry on that issue?

Mr. Byers

The climate change levy is a principle that is accepted by many businesses and the hon. Gentleman should accept that. We are consulting on the detail of its implementation and I believe that our proposals will command broad support in the House and in the business community.

Mr. Barry Sheerman (Huddersfield)

Will my right hon. Friend comment on the fact that we have seen yet again this week that Britain is the No. 1 choice for overseas investors looking for the right place to manufacture and to invest in the high technology, innovative sectors? Is that not a cause for celebration, rather than the whingeing that we hear from the Opposition?

Mr. Byers

Yesterday we were pleased to announce the results from the Invest in Britain bureau for 1998, which showed clearly that the United Kingdom was an attractive place for inward investors because they support our policy on the single currency. They do not like the Opposition's policy of ruling out joining the single currency for 10 years and most of those inward investors would not have come to the United Kingdom if we had a Government with that policy. We do not, which is why we remain an attractive place for inward investors.

Mrs. Angela Browning (Tiverton and Honiton)

Office for National Statistics figures show 140,000 fewer jobs in manufacturing than this time last year. Does the Secretary of State still support the words of the Prime Minister at last year's Labour party conference, when he told business: your fundamental problem is not high interest rates or a high pound. It is too few first class managers. Too little investment. Too little productivity."?

Mr. Byers

I support the comments made by the Prime Minister and I hope that the hon. Lady would agree that we need to improve productivity and the management of British companies. That is certainly on the agenda of my Department and will remain there. The hon. Lady should reflect on why this country is so attractive to inward investment. Some 40 per cent. of all Japanese investment in Europe comes to the United Kingdom, because those investors recognise the positive measures we have taken. That is a strength of this country and, instead of carping on the sidelines, the Conservatives should occasionally celebrate the success of our economy.

Mrs. Browning

Perhaps the Prime Minister was referring to his Front Benchers. With manufacturing jobs slumped to their lowest in six years, a north-south divide now clearly evident and a widening traded goods deficit, does the Secretary of State think that it will be of help to manufacturing for the Prime Minister to hold a conference on manufacturing to tell people how they should run their businesses?

Mr. Byers

We make no apology for consulting the manufacturing industry, because that is important. The hon. Lady should reflect on the record of the Government for whom she was a Minister. Under them, on average, 150,000 manufacturing jobs were lost every year. We will not repeat the days of Tory boom and bust, with interest rates at 15 per cent. for a year, inflation at 10 per cent. and more than 1 million manufacturing jobs lost. That is the record of her Government, but we will not repeat those mistakes. Manufacturing industry recognises that we are putting in place the policies that will lead to long-term success and strength.