TNAG-1159-FCO40-1439-Visit-by-Margaret-Thatcher--UK-Prime-Minister--to-Hong-Kong--1982 — Page 78

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

I turn now to British industry and commerce. Like others', our

industry and commerce has had to work against the background of

a recession in its major trading partners. This has hit even such

strong economies as the United States and the German Federal

Republic.

But

However, to be frank, Britain has created some of her own problems.

a third

No economy exporting of its output can afford to neglect

competitiveness. But that is what we did. Our unit labour costs

100 Mat

rose 50% between 1975 and the beginning of 1981. The reason was

the all too familiar one of wage rises not backed by productivity

gains.

Our relative lack of competitiveness, however, goes back much

further. It has been due to a number of causes. Failure of

productivity to rise as fast as that of our competitors over many

years is a major one. That poor productivity record has varied

roots, in, for example, the spread of restrictive labour practices

preventing investment being used efficiently, and an inadequate stimulus to innovation and technological change, coupled with a

failure to apply those changes in production rehne

Pout

in

I am happy to tell you that we have turned the corner that We

are firmly on the way back to recovery. We still have some way

I do not want to bove

ед

wch statistic:

But let me give you some of the facts which show that

to go.

recovery is underway.

and

of dushurity &am

mort

important, ada

as no. in single figures

the annual rate downward friend

Industrial production in the 3 months to May was 11% higher than

in the previous 3 months. Manufacturing output is now 21% above

its low point in the spring of last year.

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