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UK Manufacturing

I do not have a clue, but I am sure that either the hon. Lady or somebody with the appropriate note from the Labour Whips is itching to tell us and will doubtless leap to their feet at some point during the debate. It is instructive to consider why there has been a long-term decline. Some factors are the fault of Governments and politicians, but others are part of the global economy. It is instructive to realise that, because in the face of the economic winds of change other countries may have dealt with the pressures better than us. We have already heard about Germany, although I did not agree with the precise example. The most important factor is globalisation. Many countries have become part of the global economy and, because they have a particular advantage in low wage rates, have made huge strides in trading their way upwards and out of poverty. I am sure everybody in the Chamber agrees with that and welcomes it, but the unfortunate and painful downside for the UK has been long-term pressure on internationally traded goods, particularly those that are manufactured in this country. That has been a major factor in the erosion of Britain's relative competitive position in manufacturing. That has not been happening only over the past 10 years, although there has been a strong impact on the Government's performance. In the 1980s and '90s, before the so-called BRIC countries—Brazil, Russia, India and China—emerged and became part of the world economy, we were all talking about the Asian tigers, who were doing exactly the same thing. It has been going on for many years, and it is up to us to address the issue rather more effectively than we have been. Some of the problems are self-inflicted, however. In the old days, there was appalling labour market rigidity and industrial strife. Thankfully, that problem has been substantially reduced; it has not gone completely, but it is more a problem of history than of today. The UK has a good record in research-led innovation—scientific innovation from our universities—but unfortunately we are not as good as many other countries, particularly America, in converting theoretical science into practical manufactured products that can be sold abroad. In many cases, other countries are better at taking on such ideas and investing in them. I do not say that we are awful at it, but we could do better.