Economy: Manufacturing

Lord Cotter Excerpts

Tuesday 30th November 2010 Grand Committee

[Lord Cotter]

My Lords, I, too, thank the noble Viscount, Lord Montgomery of Alamein, for initiating this debate at this time. It is at a time of cutbacks. Emphasis is on the private sector to help our country to grow and to provide new jobs. How better than through manufacture? I was a managing director of a small manufacturing company before I got into Parliament. Not only does the UK remain the sixth largest global manufacturer, but the manufacturing sector produces 74 per cent of R&D in this country, which is praiseworthy. However, there is often misunderstanding of manufacturing in this country. It is still a very significant sector, but the perception that manufacturing is the poor relation of the financial sector and others—neat and tidy occupations, if you like—has to be corrected.

It is welcome that just this week, through the autumn forecast Statement, we heard the Government speak of increasing the incentives to innovate and develop new products in this country and to encourage high-tech businesses to invest in the UK. They will introduce a lower 10 per cent corporation tax to that effect on profits for newly commercialised patents, hopefully to be manufactured in this country.

That leads me to the future, and skills and training. In that connection, it is encouraging that both in the country as a whole and in the Government the need for hands-on training, vocational training, is being emphasised time and again. At a recent seminar promoted by the Edge Foundation, which is an education foundation dedicated to raising the stature of practical, vocational learning, it was said:

“Both George Osborne and Vince Cable make the case with force, coherence and intelligence that our economic recovery depends on a manufacturing renaissance … Given the devastation wrought on our economy by the events of the last three years, the need to drive private sector growth is urgent and overwhelming … And that depends on a reform of our education system which addresses our long term weakness in practical learning”—

from which we have suffered for many years.

It is good that there is to be an increase in apprenticeships of 75,000 by 2014-15 and that around £605 million will be invested in apprenticeships in 2011-12. It is also intended that hands-on training will be given increased status. So often, people have been encouraged—at school or wherever—to go to university, which is very praiseworthy. However, the intention of the Government is to give a qualification giving technician status when you do an apprenticeship, to give people status and represent the importance of that particular form of education.

It is good that the Government are aware of the need to improve careers advice as well, because for many years it has been said—truthfully, I think—that careers advice, in particular in schools, has not been good. For example, many instances have been put forward where careers advice at schools level has not included talk about apprenticeships at all, so the new initiative to raise the importance and efficiency of careers advice is very welcome. It must incorporate the important sectors of manufacturing that we are talking about today, but many other sectors have been neglected in the past. For a vibrant and effective manufacturing industry, we need the skills and the importance of trading to be given a top-level need. On that line, I close my remarks.