Oral question asked in the House of Lords, by Lord Roberts of Conwy (Conservative). It was answered on Thursday, 12 July 2007.

Trade: Manufacturing

Question: My Lords, I am grateful to the noble Lord for that reply. However, am I not right in thinking that the manufacturing trade deficit, at £59 billion, is a record high and that only the surplus on services is keeping the overall trade deficit at a tolerable level? Should we not be trying much harder to extend our manufacturing base and to close the productivity gap between ourselves and the United States, France and Germany—or are the Government content to rely on the continuing success of the service sector, mainly financial services, and the City?

Answer: My Lords, the Government are never content but seeking always to see improvement in performance. However, we recognise the significance of the service sector to the British economy. The noble Lord will recognise that there have been significant improvements in manufacturing output, which grew by 1.3 per cent in 2006 and, in the first couple of months of this year, is again showing an increase in growth. He is right that productivity is the key. The Government are directing their energies to improving productivity, not least with the skills agenda which very importantly relates to this issue. The Government are not content with manufacturing performance. On the whole, however, services play a roughly comparable role in the British economy to that which they play in many other advanced economies.

Secondary information

Type: Oral question
Reference: 693 c1497
Session: 2006-07
Oral question type: 1st Supplementary
Chamber / Committee: House of Lords chamber
Subjects: Manufacturing industries Manufactured goods Balance of trade Productivity Trade competitiveness
Contains statistics: Yes
Link: View this Oral question on www.publications.parliament.uk