Economy: Productivity

Lord Kinnock Excerpts

Monday 8th June 2015 Lords Chamber

[Lord O'Neill of Gatley]

The ideas that are being thought about include appropriate incentives to boost long-term investments and greater incentives for both the owners and participants in any company, whether privately owned or otherwise. The role of tax incentives is very important and they will be looked at further.

[Lord Kinnock (Lab)]

The Minister is correct to say of course that productivity has slowed throughout the OECD countries. However, as he acknowledged in his maiden speech last week, our record is palpably worse than so many other OECD countries. Does he accept that increasing productivity needs extra investment, better skills and decent pay? Will he therefore encourage the Government to reverse the 50% cut in net public investment since 2010, the ongoing 40% cut in further education for the over-19s since 2010 and the 6% loss in average earnings in this country? Is it not clear that unless those reversals are made, there is no hope of our country resuming the 15% increase necessary to return to our historic trend, let alone securing the 30% increase necessary to catch up with our comparable competitors?