HC Deb 02 May 2002 vol 384 cc1042-3
9. Mr. Ben Chapman (Wirral, South)

What steps she is taking to help manufacturing industry. [52006]

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

Fundamental to the success of our manufacturing industry is the establishment of a stable macro-economic framework, which this Government have successfully put in place since 1997. In addition, we have set in hand a range of specific measures that will improve industry's productivity and competitiveness. My right hon. Friend the Secretary of State expects to set out the Government's strategy for manufacturing in a publication later this month.

Mr. Chapman

I welcome and look forward to that publication. However, what are the Government doing now to help manufacturing firms in my constituency? No matter what they do in terms of productivity or efficiency gains, ground-breaking agreements between management and unions, and investment, they still cannot compete because of the barrier of the pound-euro exchange rate.

Alan Johnson

From visiting the Wirral international business park with my hon. Friend in February, I know of the concern of local manufacturing businesses, particularly about the slowdown in the world economy and the weakness of the euro. We believe that artificial measures to reduce the level of sterling would risk a return to the economic instability that so damaged manufacturing in the past.

In this morning's newspaper, the chief executive of Siemens, Alan Wood, says: it is clear that the UK can only sustain a successful manufacturing base if we all increase our productivity levels by investing in high-tech manufacturing. We also need to establish good supply chain management, create cutting edge research and make more innovative products. We need to concentrate on skills, innovation and research and development so that we can add value to manufacturing products in this country and ensure the success of manufacturing in Wirral and throughout the United Kingdom.

Mr. John Whittingdale (Maldon and East Chelmsford)

I begin by congratulating the Minister on what we are told is his new appointment. If the Government are so keen to show their support for manufacturing industry, will he explain why neither he nor any of the other seven Department of Trade and Industry Ministers could find time in their diary to attend MACH 2002, the No.1 exhibition of manufacturing technology which is taking place in Birmingham for the whole of this week? Is the hon. Gentleman aware that the equivalent event in Germany was attended by the German Chancellor, Gerhard Schröder? Does not the Government's failure even to turn up speak far more loudly about the priority that they attach to manufacturing than a change in the title at the top of the Minister's notepaper?

Alan Johnson

The suggestion is nonsense. The Machine Tool Technologies Association is a very important organisation which understands the importance that we attach to manufacturing industry. I understand that the hon. Member for Maldon and East Chelmsford (Mr. Whittingdale) attended the exhibition. In my new role, I will ensure that the MTTA never has to accept second best again.

Mr. fain Luke (Dundee, East)

I welcome the many initiatives in the Budget to sustain manufacturing, help stimulate small and medium-sized manufacturing concerns and, importantly, assist in the start-up of new, smaller manufacturing concerns. Will the Minister give an undertaking to work closely with the Scottish Executive, Scottish Enterprise and local companies in Scotland to ensure that the new telephone helpline is widely advertised and that the new starter packs are widely available so that new manufacturing concerns can start up throughout the country?

Alan Johnson

I will certainly give my hon. Friend the assurance that he seeks. It is important that we work closely with the Scottish Executive and with Scottish Enterprise to ensure that in the early days of what seems to be a better future for manufacturing—after a dreadful time—we all work together. In that way, the opportunities for business support are well understood and well known to companies and manufacturing.