Economy: Productivity

Lord West of Spithead Excerpts

Wednesday 23rd July 2014 Lords Chamber

[Lord Popat]

My Lords, import substitution is not the answer in this very competitive world. As to depreciation of the currency, experience tells us that our currency is worth 25% less than it was at its peak in 2007. Depreciation is not the answer. We should let our currency fluctuate freely in the open market. Experience tells us that a depreciating pound will not result in higher exports.

[Lord West of Spithead (Lab)]

My Lords—

[Lord May of Oxford (CB)]

Building on the admission that one of the greatest drivers of productivity is research and development, does the Minister agree that we need to do something to promote a more risk-taking culture? In the United States, bankruptcy is almost a condition for going forward in Silicon Valley; in our case, it means that it is hard to get a credit card afterwards.