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Mr. Chidgey: Will the Minister give way?
Mrs. Roche: Let me make a little progress, please.
Our economic policies are grounded in reality, ensuring long-term economic stability and employment; encouraging business to improve its competitiveness; very importantly, exploiting Britain's science base; and meeting the challenges of the new knowledge-based economy. Let us ground ourselves in reality and look at the facts. Since May 1997, 420,000 new jobs have been created in the United Kingdom. Over the past four weeks alone, companies have announced 13,000 more new jobs created than jobs lost. Those are all new jobs in manufacturing industry, which reflect the Government's commitment to long-term economic stability.
Mr. Boswell:
In view of her Department's concern about productivity and the fact that even the Chancellor has produced an estimate of growth in the economy next year that is far below the trend rate for productivity, will the Minister advise the House whether, and to what extent, job losses will rise in the year to come?
Mrs. Roche:
I have some respect for the hon. Gentleman, but he must get a grip on reality. Under this Government, more jobs have been gained than lost. Of course the Government have been concerned about productivity, which is why my right hon. Friends the Secretary of State and the Chancellor have been engaged with industry in looking at our productivity. That is what we want to address.
Mr. Chidgey:
The Minister is talking about reality and saying that we should not talk ourselves into recession. Is it not right that she should make a distinction between the economy as a whole and manufacturing industry, which is what the debate is about? Does the Minister accept that the 29 City analysts that the Treasury uses to make its forecasts are telling us that, next year, there will be growth of minus 1.2 per cent., which is a recession? We should address that.
Mrs. Roche:
If the hon. Gentleman would allow me to make some progress, I would tell him that, as a result of the global downturn, we accept that some companies have announced closures. However, the picture in manufacturing is mixed and some manufacturing companies are doing very well.
Unlike the Opposition, who seem to pray for redundancies and care only about the job losses that occurred in their party in May last year--that is what the debate is really about--the Government understand what factory closures mean for the real lives of those who work there and for the areas affected. We have taken steps to reduce the hurt caused by job losses by introducing rapid response groups, providing training and employment opportunities for those affected by closures and by working with the companies concerned, such as Fujitsu and Siemens, to help safeguard jobs.
Mr. Richard Burden (Birmingham, Northfield):
Within that context, will my hon. Friend join me in welcoming the partnership being established in Birmingham between Birmingham city council, the local training and enterprise council and the chamber of commerce to help the supply chain in the wake of the difficulties being faced at Rover? It is helping to ensure that that city is as well-equipped as it can be to withstand the challenges ahead. I ask my hon. Friend to welcome
Mrs. Roche:
I am grateful to my hon. Friend for that point. I congratulate all the partners involved. I welcome my hon. Friend's remarks about the visit made by my right hon. Friend the Secretary of State, who I know has a great deal of admiration for what is going on there.
We are targeting areas most in need through the single regeneration budget, European funds and assistance to companies. In drawing up our proposals for the competitiveness White Paper, we are taking into account the importance of small firms--much has been made of that issue, which was mentioned by the hon. Members for Daventry (Mr. Boswell) and for Eastleigh (Mr. Chidgey) and by my hon. Friend the Member for South Ribble (Mr. Borrow). It was also mentioned by my hon. Friend the Member for Crosby (Mrs. Curtis-Thomas), who has a great deal of experience as a chartered engineer in industry. All those points were well made.
Mrs. Roche:
I must make some progress.
In May 1997, we inherited an economy where growth was running at an unsustainable rate and where inflation was heading way above target. The public finances were in substantial deficit--[Interruption.] Opposition Members may not like the facts, but they are going to hear them. We have determined not to repeat the mistakes made by the Conservative party. That is why we have taken tough and decisive action--[Interruption.]
Mr. Deputy Speaker (Mr. Michael J. Martin):
Order. Hon. Members must stop shouting at the Minister. No one should be shouting at the Minister.
Mrs. Roche:
I am grateful to you, Mr. Deputy Speaker, but I do not mind Opposition Members shouting if they do not have any arguments.
We have taken action to prevent a return to the stop-go cycles of the past. We are determined to keep on course.
Mrs. Roche:
I must make some progress.
The economy is still expanding and creating new jobs and inflation is at its 2.5 per cent. target. There must be no return to the boom and bust of the late 1980s and 1990s when inflation rose to nearly 10 per cent. and interest rates hit 15 per cent.
Overall, nearly 3 million jobs were lost in manufacturing when the Opposition were in power. They do not like to be reminded of that, but they are going to hear it. The Opposition had the cheek to suggest today that our policies are damaging employment prospects.
The Opposition's attitude was pointed out by my hon. Friend the Member for Liverpool, Garston (Maria Eagle) in an impassioned speech. We have the policies for
employment growth. We have achieved that through what we have done with the corporate tax system, with our reforms of capital gains tax and what we have done on better regulation.
The Conservative party had the cheek to say--the hon. Member for Daventry mentioned this--that our election to office would lead to inward investment drying up. Let us come back to reality. During 1997-98--the first year under a Labour Government for 20 years--my Department's Invest in Britain Bureau recorded more inward investment projects than ever before. There were no fewer than 618 in one year. It is the first time that the annual total has ever exceeded 500. I am expecting the letter of congratulation from the right hon. Member for Wokingham (Mr. Redwood) in the morning.
Mr. Bruce:
The Minister, who is always kind to me, can just catch her breath. I wonder whether she can deal with the important point which I made in my speech and which I think may have alarmed colleagues throughout the House. Article 13 of the working time directive deals with the fact that people have to take the leave to which they are entitled within the leave year. If somebody starts on 1 July, they must finish their summer holiday by 1 July.
Mr. Deputy Speaker:
Order. That is far too long.
Mrs. Roche:
I take the hon. Gentleman's point. He will know that, when we drew up the regulations, we consulted industry. Under the previous Administration, under the premiership of the right hon. Member for Huntingdon (Mr. Major), 10,000 new regulations were introduced. I do not think that we need any lessons from the Opposition.
We have Ericsson of Sweden planning to move a major international operation to London and Silicon valley's CISCO Systems, a world leader in internet technology, is to build a major research and development centre in Britain. Volkswagen has confirmed heavy investment plans at the Rolls-Royce plant in Crewe where the work force of 2,500 is expected to grow. Those companies come here because they see the advantage of locating in the United Kingdom. They are attracted by economic stability--[Interruption.]
Mr. Deputy Speaker:
Order. The hon. Member for South Dorset (Mr. Bruce) has just made an intervention. He is now making a speech while the Minister is speaking. We cannot have that.
Mrs. Roche:
I am saddened by the behaviour of the Opposition, but I am not surprised, because they do not care. They do not want to hear the facts.
Inward investment cannot be our only source for new jobs. It must be matched by the creation of new home-grown companies and industry. That is what we want to do. We want more high-quality start-ups and more creative start-ups. We want to back those who want to take long-term risks and ensure that they can go on and prosper. That is why we are consulting industry and why we shall shortly publish our White Paper on competitiveness. That White Paper will include new
proposals for promoting enterprise in the United Kingdom. We want to ensure that those objectives are achieved both regionally and locally.
Today's debate has shown that the Conservative party is out of touch with the people of the United Kingdom. I urge the House to reject the Opposition motion and to support the Government amendment.
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