Industrial Policy and Manufacturing

Debate between Chris White and Gordon Birtwistle

Thursday 22nd November 2012 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

May I say how delighted I am to follow the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) in this important debate? I must also thank the Backbench Business Committee for scheduling time for it. As co-chair of the all-party parliamentary group on manufacturing, along with the hon. Member for Huddersfield (Mr Sheerman), one of the most consistent messages I hear is that the UK needs to have a comprehensive industrial policy setting out the key economic objectives and the policies we need to achieve them. We need, as a country, to get back on a more sustainable path to growth, which means seeking to balance our books—specifically, by reducing our trade deficit—so that Britain can be more resilient against future shocks and thrives in a more competitive world. Any industrial policy needs to consider the full range of the UK’s economic strengths, from financial services to creative industries and renewable energy. However, the most effective way of achieving a more sustainable growth trajectory is to boost manufacturing and our industrial capacity.

[Gordon Birtwistle]

May I advise my hon. Friend that in 1997 manufacturing was responsible for 22% of our GDP and we had a £4.4 billion surplus on the balance of payments, whereas by 2008 that had reduced to 12% and we had a £42.6 billion deficit on the balance of payments? Does that not show that manufacturing and exports are vital to this country?

[Chris White]

I thank my hon. Friend for his intervention and I note the figures he uses. One target the Minister might like to consider in an industrial strategy is about 15% by 2015—that works in so many ways.

We cannot afford merely to dismiss a large part of our global economy. Emerging markets are focusing on production and industry already, but they will not focus on those things for ever. Soon they will seek to compete with the developing economies in highly lucrative services, as well as in research and development. Where will the UK go then? We need to compete in manufacturing, as well as in services and the creative economy, if we are to succeed in the years ahead. The narrower our economy becomes, the more unstable it will be. We need a broad-based economic strategy, and manufacturing can and must play a crucial role in delivering that.