HC Deb 05 December 2002 vol 395 cc1042-4
12. Ann Winterton (Congleton)

What recent assessment she has made of the future economic viability of the United Kingdom's ceramics industry. [83613]

The Minister for Employment Relations, Industry and the Regions (Alan Johnson)

The ECOTEC study published in March 1999 is the most recent report on the ceramics sector. This led on to the creation of the Ceramics Industry Forum, which is supported by £3.3million of DTI funding. More generally, departmental officials keep up to date with developments in the sector through regular meetings with ceramics firms and intermediaries covering a wide range of productivity and competitiveness issues.

Ann Winterton

Is the Minister aware that the UK ceramics industry has been better placed than its European counterparts to withstand competition from low-cost importers because of the comparative flexibility of the UK labour market? However, will he address the concerns of ceramics manufacturers in the Congleton constituency, as well as the British Ceramics Confederation, who believe that that slight advantage is being seriously eroded by the incessant imposition of unnecessary and unrelated regulations by this Government, which add costs and reduce competitiveness and will affect future investment and employment opportunities?

Alan Johnson

I accept that the ceramics industry feels that it has an advantage in this country thanks to the splendid policies of this Government. The intelligent question from the hon. Member for Buckingham (Mr. Bercow) and the answer from my right hon. Friend the Secretary of State addressed the issue of regulation. All sectors of manufacturing are, of course, concerned about additional regulations, but they are also extremely discriminatory in terms of the regulations about which we are talking. For instance, employment regulations such as the minimum wage, the right to paid holidays and the right that part-time workers be treated the same as full-time workers do not even register on most manufacturers' Richter scales. Most good employers in this country see such measures as decent and proper terms and conditions for their employees. The problems in ceramics are being addressed through the industry forum, for which the Conservative party was committed to remove funding as part of £300 million of cuts in business support. The industry is taking the issues forward and having an intelligent debate about regulations, which is not always what we hear from the Conservative party.

Ms Joan Walley (Stoke-on-Trent, North)

May I dissociate myself from any call that the Government should not be looking at extending employment rights to workers in the ceramics and potteries industries? However, my hon. Friend the Minister is well aware that we cannot disguise the fact that the ceramics industry has faced severe problems, arising particularly out of the global market in which it is operating. It is important that we stick with the agenda of innovation and design. I invite my hon. Friend to visit—

Mr. Speaker

Order. I call the Minister.

Alan Johnson

My hon. Friend can invite me to visit; I am just not sure where. [Laughter.] She makes an important point about the ceramics industry. The only answer—not just in ceramics but in other sectors—is to add value and to continually innovate, so that we can compete on the same basis as our competitors from Japan, Germany and the United States; not in terms of low pay or low skills but in terms of high added value. I should be pleased to visit Stoke-on-Trent. I was due to visit twice, but the visits had to be called off because of parliamentary business. However, we will rearrange the visit shortly.