HL Deb 09 February 1989 vol 503 cc1658-9

3.12 p.m.

Baroness Elliot of Harwood asked Her Majesty's Government:

By how much the productivity of Scottish manufacturing industry has increased since 1979; and how this compares with that of the other component parts of the United Kingdom.

The Minister of State, Scottish Office (Lord Sanderson of Bowden)

My Lords, between 1979 and 1987 output per head in manufacturing industry is estimated to have risen by 5.2 per cent. per annum in both Scotland and Wales and by 3.0 per cent. per annum in Northern Ireland. The estimated increase was 4.1 per cent. per annum for the UK as a whole.

Improvements in productivity have a decisive influence on a country's competitive position and are therefore a key element in the increase of a nation's prosperity.

Baroness Elliot of Harwood

My Lords, I congratulate my noble friend on that admirable account of what is happening. Will he give us some idea of how those figures compare with those of other industrialised countries?

Lord Sanderson of Bowden

My Lords, with great pleasure. The Scottish figure of 5.2 per cent. compares with the average of the major seven OECD economies of 3.2 per cent. That is a satisfactory situation.

Lord Carmichael of Kelvingrove

My Lords, does the Minister accept that those figures will be read with some disbelief by most people in Scotland? If productivity has risen, as his statistics seem to indicate, has it not been at the expense of heavy unemployment? The Minister will be aware of the enormous losses suffered since 1979—nearly 5,000 jobs in Singers; 700 in Goodyear; 300 in Massey Ferguson and 1,600 in British Aluminium. I could go on and on. At the expense of creating good statistics, which people begin to disbelieve, we have lost the production of all those factories and caused a great deal of unemployment and loss of heart for many people.

Lord Sanderson of Bowden

My Lords, I am grateful to the noble Lord for his question. It is true that in the early 1980s the shake-out of labour in manufacturing industry, especially in Scotland, was very great. There were fears that things would not recover. However, the latest figures show that over the year to June 1988, manufacturing output per head in Scotland increased by 9 per cent. compared with the year to June 1987. Over the same period, the United Kingdom increase was almost 7 per cent. The noble Lord mentioned figures. However, I do not believe that the figures for the increase in unemployment of 550,000 to 1ŀ3 million under his Administration between 1974 and 1979 were welcome.

Lord Carmichael of Kelvingrove

My Lords, the Minister will also be aware that the statistics have changed slightly. In my old constituency we have a large supermarket providing 600 jobs. They work out at 150 full-time jobs; but according to the statistics—this is what is worrying about statistics—they are classed as 600 jobs.

Lord Sanderson of Bowden

My Lords, without going into statistics, all that I should like to say to the noble Lord is—and I believe that he will agree with me if he looks at Ravenscraig's record now where production is flat out in the strip mill and in the production of liquid steel—that the Government's record in relation to Scottish industry is one which I am sure he in his heart of hearts would applaud.