Manufacturing Productivity

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 15 March 1989.

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Photo of Mr Kenneth Hind Mr Kenneth Hind , West Lancashire 12:00, 15 March 1989

To ask the Chancellor of the Duchy of Lancaster if he will give comparable figures for the growth of manufacturing productivity in Organisation for Economic Co-operation and Development countries between 1979 and 1987.

Photo of Mr Robert Atkins Mr Robert Atkins , South Ribble

Those countries for which figures are readily available showed the following increases in manufacturing productivity between 1979 and 1987: Greece 0 per cent., Australia 6 per cent., Canada 9 per cent., Germany 14 per cent., Switzerland 19 per cent., France 20 per cent., Japan and Norway 21 per cent., the Netherlands 25 per cent., Sweden 26 per cent., Austria and Belgium 29 per cent., Spain 32 per cent., Italy and the USA 33 per cent., the United Kingdom 37 per cent. Only three countries out of the member states—Finland with 43 per cent., Portugal with 54 per cent. and Ireland with 81 per cent. have higher increases than the United Kingdom.

Photo of Mr Kenneth Hind Mr Kenneth Hind , West Lancashire

I am grateful for my hon. Friend's answer. Has he noted from the labour force survey that, in the months to June 1988, manufacturing employment has increased, along with the momentous increases in productivity already mentioned? Will he also confirm that German companies operating through subsidiaries in the United Kingdom are finding that productivity in Britain is higher than in West Germany?

Photo of Mr Robert Atkins Mr Robert Atkins , South Ribble

My hon. Friend is right. That is certainly the case with West German companies. He will also know, as I do, of a company—Leyland DAF—which employs many people in our respective constituencies. As a direct result of a deal with that company, productivity has increased 100 per cent. over the past 18 months. That is a measure of the productivity in British industry, which, may I yet again dare to remind the Opposition, is a great success story of which we should be proud.