Queen’s Speech — House of Lords, 2016-05-25
Topic: Macroeconomics
Brian Joseph Michael Cotter (Liberal Democrats, Centre to centre-left): My Lords, I will speak on the economy generally—so important for us all. Briefly, like many have already, I refer to the in/out referendum. I will not elaborate, other than to say that when it comes to the economy it is vital to build on our existing contacts, which are clear and important. Those advocating we come out have not said much specifically and tangibly about the economic future. We will be set adrift without ready replacement for the work we now enjoy through the EU Time and again when it comes to the economy, productivity, or lack of it, has been raised, as indeed it was by the Minister in his opening remarks and by my noble friend Lord Oates. I recently met with the organisation ADS, the national trade association for the UK’s aerospace, defence, security and space sectors. It points to the fact that there has been a 30% increase in productivity growth in its sector in the last five years, compared with 2% generally across the UK economy. Why? It has a lot to do with the way it invests in skills and good management, and has a commitment to apprenticeships. The aerospace sector places a lot of emphasis on apprenticeships, thereby having a skilled workforce—so key to productivity. I have learned how key apprenticeships are to the high level of skills that such companies have—so vital for this sector and how supportive they are in this respect But, most importantly, I have learned from management in the space sector the emphasis that it places on working collaboratively with the workforce. It is vital that management respects and works with its employees, which has not always happened elsewhere. It is, as I and this sector believe, essential that there is leadership from management, but also, most importantly, that it listens to and inspires those who work for it. I am not suggesting a "them and us" management approach, which is too common, but one that is collaborative and clear—that is, we do not want the heavy-handed approach of the past, which is so destructive when it comes to getting the best out of people and thereby to achieving high productivity I relate to this personally. Early in my career after leaving school I worked for a small plastic manufacturing company run on "them and us" principles. I left after a couple of years because of this attitude. I remained in business and ran my own business for many years, latterly in the manufacturing sector, but before that in trading and supplying to shops. I was approached by the original business I had worked for for just two years, asking whether I would come back to run the business, which I did. Within just two months or so after I changed it from a "them and us" company to a collaboratively management-run company, it lifted off the ground and produced the results that are very necessary for any company to achieve. To get productivity we need good management, as I saw in my career. A key aspect of the 30% increase in productivity achieved by the aerospace industry has been through good management and respecting the employees I say to the Government that we must train management. It is vital that they achieve a high standard and ensure that managers are properly qualified before they are allowed to run companies. I support what my colleagues and others have said: too many people are paid fantastically large sums of money when they are just incompetent. To have a healthy and productive economy we need investment Again, I urge the Government to take strong action, helping with investment to ensure that they and large firms pay SMEs promptly—an issue I have raised in the House many times. Indeed, I ask the Minister to confirm what I saw in a newspaper—that the new business tsar will challenge late payers in person. Is that happening? If not, it should be. Small firms in this country suffer greatly from late payment. I leave that in the hands of the Minister and hope he can consider the issues of management and productivity.