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
이
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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