Productivity

Debate between Marcus Fysh and Simon Hoare

Wednesday 17th June 2015 Commons Chamber

[Marcus Fysh (Yeovil) (Con)]

It is a pleasure to follow such excellent maiden speeches, not least that of my hon. Friend the Member for Hertsmere (Oliver Dowden), who gave us a wonderful tour of the massage parlours of his constituency.

The amount of value we create in our work is key to what we can expect to earn over the long term. We heard earlier this afternoon from the Secretary of State for Education how this Government are focused on getting great teaching and skills to our young people to give them the best chances in life. I support that and am keen to ensure that recent improvements on that front in my Yeovil constituency are consolidated and taken further. I want more funding for school places in my county of Somerset, too, so that we can build a better future for our children, developing their talents to their full potential.

I also support the plan for productivity mentioned earlier by the Chief Secretary to the Treasury. We have a plan for productivity, not just platitudes as espoused by the Opposition. Differences in productivity levels between G7 nations have been relatively static over time, reflecting widely different structural characteristics. There are significant measurement problems in the statistics—for example, in picking up the intangible benefits of changing technology. Productivity growth has dipped in America, too, in recent years, so it is not just a British disease, as some are trying to claim, although we should look to America as an example of an economy with higher productivity growth on average than we have managed over time.

Recessions are bad for productivity growth, as capital for investment becomes scarce, so confidence in further recovery is definitely a factor for us to encourage. We also must be careful not to restrict our service businesses while we attempt, rightly, to encourage manufacturing. Services are a huge competitive advantage that we have as a nation, and we need to get them firing on all cylinders and respect their contribution.

It is fantastic news that 2 million net new jobs have been taken up since 2010. In the past year alone, the unemployment count in my constituency has come down by 24%. That is an outstanding achievement and it shows that my constituents are finding positive answers to their questions on employment, even if there is more to do and we need always to prepare for an uncertain future. We must not be complacent and we must certainly do what we can to enable employers to make the jobs they offer more rewarding, improve the number and quality of apprenticeships, and support businesses with the right policy settings.

Of course, we can do better as a nation, and that is important to the national finances, as well as to personal pay packets. People in the south-west want to cut red tape, extend investment allowances, keep taxes low, invest in infrastructure such as the dualling of the A303 and A358, connect people with broadband, including those in rural areas, and reopen rail connections in Yeovil and Chard, to get people and their work and ideas to where they need to be.

[Simon Hoare]

My hon. Friend is absolutely right to mention broadband, an issue that affects many constituencies. Does he agree that an increase in mobile telephone signal is also very important in rural areas, to help small and medium-sized businesses?

[Marcus Fysh]

That is a very good point, and we are pursuing it in the south-west.

People are not just productivity statistics from a survey in a report. What suits one person will not necessarily suit another, and it is wrong to say that lower-paid work is necessarily bad or should not be respected. It is a good thing that all types of jobs are being created. Things are getting better in our country and we must resist talking down the great achievements and sacrifices our people have made over the testing period we are coming out of. We can all play our part to build a better future, and if we do the right thing the statistics will follow.