Economy: Productivity

Baroness Farrington of Ribbleton Excerpts

Monday 8th June 2015 Lords Chamber

[Lord O'Neill of Gatley]

My Lords, it is important to remind noble Lords that I referred to “measured productivity”. There are considerable issues to be focused on about aspects of how productivity is measured. Again as I highlighted in my maiden speech, the UK in the past few years has had the best employment increase record throughout the G7 countries. One does not need to look at a choice between employment and productivity, but if one were forced to do so, I think that most people in this country would want jobs and not to get so lost in the productivity issues. However, I also add that—as is well known—over the long term, countries that have the better true productivity performance are those with generally a higher standard of living and wealth, including in shared wealth. In that regard, let me repeat some of the policies that I suggested will be focused on. They will include rebuilding the northern powerhouse, improving our infrastructure, undertaking policies to improve the supply of new homes, further reforms of education and apprenticeships and—this is linked to my previous comment—boosting incentives for long-term investment.

[Baroness Farrington of Ribbleton]

My Lords, the Minister referred to the importance of employment. Would he care to comment on the fact that the personal income of people in employment ought to be sufficient for them to be self-sufficient—that is, a living wage? Would he care to endorse the—apparently—lately formed views of the Mayor of London that the Government ought to stop subsidies to companies which make huge profits while paying pittances to the people the Minister referred to, who want not only employment but a living wage and dignity?

[Lord O'Neill of Gatley]

The policies we will focus on will be those to boost the long-term performance of the economy from a productivity perspective, which will help enhance the job satisfaction of many people in our country.