The visible deficit has averaged about 2 per cent of GDP since 1991. We have lost share in sea transport, air transport, tourism and business travel. In part this may reflect the growing tendency to provide services from overseas locations. The overseas stock of direct investment by UK service industries now exceeds that of UK manufacturing industries. It is important to improve the productivity of all resources, and to invest and trade profitably.
Labour productivity is of particular interest.
A rising standard of living tends to go hand in hand with increasing labour productivity. This is only a partial measure of performance, but can be estimated. We have also to recognise that the skills and abilities of the working population are diverse. The fastest productivity growth has been achieved in the utilities sector, particularly by those exposed to competition. The Gas Bill, which is currently before Parliament, will introduce greater competition into that sector, too.