Letter: Restored faith in manufacturing

Mr Alan Hughes,Professor R. E. Rowthorn
Sunday 07 March 1993 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Sir: We applaud John Major's endorsement of the view that an efficient manufacturing sector of sufficient scale holds the key to the long-term prosperity of the nation ('Major sets out his revolutionary credentials', 4 March).

This view, long held in Cambridge, has until now been largely rejected in government circles. In his interview, Mr Major argues that a fundamental change in attitude is required to rebuild our manufacturing base. Recognising the problem is, however, only half the battle. To restore our manufacturing base will take decades. It will take more than his proposed revamping of the export credit guarantee scheme and boost to education and training. Above all, it will require the maintenance of a competitive exchange rate and the provision of fiscal incentives to encourage investment in manufacturing and its supporting infrastructure.

One test of Mr Major's commitment to manufacturing will be his willingness to hold down the real exchange rate to the more competitive level to which it was unceremoniously driven on Black Wednesday.

Another will be his willingness to implement the kind of interventionist package promoted so vigorously by Michael Heseltine from outside the same Cabinet in which Mr Major, we now learn, was a minority supporter of manufacturing.

Yours faithfully,

ALAN HUGHES

BOB ROWTHORN

Faculty of Economics and

Politics

University of Cambridge

Cambridge

5 March

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in