§ Mr. Murphyasked the Secretary of State for Industry whether he is satisfied With the present size of, and prospects for, the engineering and manufacturing industries; and whether he has any evidence that there will be further contraction in the industries in 1982.
§ Mr. MacGregorSince the early 1970s there has been a downward trend in the output of United Kingdom manufacturing industry as a whole and of the engineering sector. The recent economic recession worsened the318W position but the main reason for declining output was poor competitiveness. It would be difficult for anyone to be satisfied with this situation.
Recent figures show that manufacturing output began to recover in the second half of 1981 and that manufacturing productivity increased by 10 per cent. over the year. This, together with the 17 per cent. increase in the volume of engineering orders in 1981, shows an improvement which is expected to continue during 1982.