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20 November 1998
CHANCELLOR LAUNCHES NATIONAL DEBATE ON BRITAIN'S PRODUCTIVITY
An open national debate on how to boost Britain's productivity performance was launched today by Chancellor Gordon Brown as part of the Pre-Budget Report consultation. Together with Scottish Office Business and Industry Minister, Lord Macdonald, the Chancellor hosted the first nationwide "Productivity Challenge" roadshow in Edinburgh.
Speaking before an audience of local business people and others from the world of education and training, the Chancellor said:
"Britain today faces a major challenge - the productivity challenge. Our productivity is now way behind that of our major competitors. Productivity levels in the US are 40 per cent higher than in Britain, and 20 per cent higher in Germany than here.
"This problem has been ignored for too long. We need to tackle it now. We need to raise our game. Improving our productivity is the key to a stronger economy - to higher growth, more jobs and opportunities, and better living standards for us all. We have made a good start through the Government's Private Finance Initiative, which expects to invest over #300 million this year and over #1 billion in the next three years in Scotland alone.
"The Pre-Budget Report has begun to set out what we must do to equip the British economy for the challenge ahead. The Government wants to work together with business and educators to raise our productivity and match the best in the world.
"That is why I am here today, to discuss what needs to be done to meet the productivity challenge."
Lord Macdonald said:
"I am delighted to welcome the productivity roadshow to Edinburgh. Scotland has a vital role to play in meeting the productivity challenge. This morning's event will do much to focus attention on how to boost our productivity performance in Scotland."
The roadshow will travel round the UK over the next few months, as part of the Government's consultation on the Pre-Budget Report. Ministers from a number of Government Departments will be involved - they will want to discuss directly with local business people and others possible solutions for closing the productivity gap. The roadshow will end in Birmingham on 5 February.
NOTES FOR EDITORS
1. The roadshow launch was held at TSB Bank Scotland's headquarters in George Street, Edinburgh.
2. The Pre-Budget Report was published on 3 November. As well as setting out the steps needed to secure high and stable levels of employment, it forms the basis for a wide-ranging consultation on the steps that need to be taken to address the UK's long-standing productivity gap.