Commonwealth Trade

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Wednesday 12th December 2012

(12 years ago)

Westminster Hall
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Mark Simmonds Portrait The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mark Simmonds)
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It is a pleasure to serve under your guidance, Mr Turner. My right hon. Friend the Member for East Devon (Mr Swire), the Minister of State, sends his apologies for not being able to be here this morning; it is he who has responsibility for the UK’s relationship with the Commonwealth. He is abroad on business, but I know that he will read avidly the transcript of the debate. If I do not have time to reply to all the points made by my hon. Friend the Member for Romford (Andrew Rosindell), I will ensure that he is written to in a detailed way that sets out the Foreign and Commonwealth Office’s response.

I congratulate my hon. Friend on securing this important debate and on his knowledge and detailed understanding of the importance of the UK’s relationship with the Commonwealth—and with the overseas territories, which we explored in some detail at the Foreign Affairs Committee yesterday. His speech today was typically passionate, articulate and lucid, and it showed a detailed grasp of the complexity of some of the issues that we are wrestling with this morning.

My hon. Friend was absolutely right in the central thrust of his argument: the necessity and importance of driving economic and trade ties with the Commonwealth, to stimulate economic development, wealth and sustainable job creation, as a significant contribution to alleviating poverty in some Commonwealth countries and to helping with our UK economic recovery. I would, however, like to address one or two issues up front, because my hon. Friend seemed to imply that nothing was being done at the moment to improve relations, economic trade and other ties with the Commonwealth.

Of course, I accept that more needs to be done. The right hon. Member for Birkenhead (Mr Field) rightly mentioned Lord Howell’s significant contribution; I know from discussions with my noble Friend that he is still very interested in and engaged with driving forward the relationship with the Commonwealth. The issue is not, of course, just about economic and trade ties; it is also about building governmental capacity and strengthening ties in other areas, including through education. There is a keenness and enthusiasm to create links with UK educational establishments, to build capacity and to facilitate the work of the British Council where appropriate.

It is important that Members understand the overseas territories’ relationship with the Commonwealth. In our view, the territories should have either associate or observer membership of the Commonwealth, and we have been lobbying for that for some time. However, that is not in the UK’s gift; it has to be agreed by all Commonwealth member states.

At the joint ministerial council that I chaired last week, when all the overseas territory leaders came to London, one of the most significant sessions was when the Commonwealth secretary-general addressed the leaders and responded to questions. One of the most forceful points that was put across from a selection of overseas territory premiers and chief ministers was their desire to be a more integral part of the Commonwealth family, in their own right. It needs to be said, however, that they have benefited from and participated in some of the Commonwealth Parliamentary Association’s functions and have attended some of the conferences that have taken place, particularly those relating to small island states.

At the moment, overseas territories cannot be observer members because, back in 2007, a Commonwealth sub-committee made a recommendation, which was accepted by the Commonwealth, that only sovereign states, and no subsets, were allowed to be full members. We continue to lobby the Commonwealth about changing that, and I hope that we will make progress.

In response to a point made by one of the hon. Members who has left already, I should say that we welcome applications to join the Commonwealth from countries that can demonstrate that they meet the requirements and are dedicated to the Commonwealth’s core values, particularly those of human rights, good governance and the rule of law.

I also want to pick up on a point made by the right hon. Member for Birkenhead, about overseas territory direct representation in the UK Parliament. The right hon. Member for Warley (Mr Spellar) was absolutely right. There is no aspiration or ambition in the overseas territories to be represented in the UK Parliament, and that would be the prerequisite for the commencement of any discussion in that direction. I gather that impression from my discussions, here and elsewhere, with senior overseas territory politicians and with many members of the broadest civil society. As the right hon. Member for Warley rightly set out, the territories would be extremely nervous about the potential impact, given what they would see as the removal of their responsibility to set taxation rights, drive their economies and deliver public services.

We are building a positive partnership relationship with the overseas territories. My hon. Friend the Member for North West Norfolk (Mr Bellingham) needs enormous credit and thanks for the significant work that he put in to ensure that the White Paper was formulated, that the consultation process was detailed and that, across the three significant areas of trade and economic ties, building capacity of public services and the all-important environment, we are growing the relationship in a positive direction.

I thank the right hon. Member for Warley for his significant and important work in the Turks and Caicos Islands to ensure that they returned to the democratic family.

I also want to bust the myth that the right hon. Member for Birkenhead talked about: it is not true that significant proportions of international development money disappear through corruption. The money has a significant impact on many people’s lives, both in the Commonwealth and elsewhere. Of course it is right that the money should be used for the purposes for which it is intended, and of course it is right to focus on outcomes to get the maximum bang for the British taxpayer’s buck. Where that does not happen, such as recently in the Ugandan Prime Minister’s office, swift action is taken to ensure that the aid is suspended.

I was going to comment on industrial capability, as raised by the right hon. Member for Warley, but time is ticking along. I suspect a little bit of rewriting history is going on there, but the coalition Government are determined to ensure that we rebalance the economy away from the prevalence of financial services and the public sector and that we reverse the decline in the manufacturing sector that happened in the 13 years under the Labour Administration. The right hon. Gentleman probably wants to intervene, but I will not give way because I have to plough on.

The context of what I want to say in the remaining minutes is that we came to office determined to reinvigorate the Commonwealth as an international organisation, and to reinvigorate our relationship with the Commonwealth and its integral member states, in the belief that we can use and capitalise on those networks and relationships in a globalising world to drive our agenda, and the Commonwealth’s agenda, of prosperity, stability and security. The Commonwealth is a long-standing network of old friends that lends itself perfectly to that ambition. One of the big challenges that we have faced in taking forward that agenda is ensuring that the Commonwealth as an organisation remains relevant in today’s changing world.

An important part of our work to reinvigorate the Commonwealth has been the modernisation agenda to achieve many of the recommendations set out by the eminent persons group, as it is rather grandly called. The relevant Minister, my right hon. Friend the Member for East Devon, is working extremely hard in an extremely focused way, alongside the Foreign Secretary, to ensure that we drive forward that modernisation agenda. I will not go into great detail, although if Members are interested, I am happy to provide it, because I want to focus on the prosperity side of the agenda.

I mention the modernisation agenda—the importance of democracy, the rule of law and the respect of core values—because it is a prerequisite that creates the conditions under which business can flourish; it gives business the confidence to invest and to trade, which inevitably leads to sustainable prosperity.

What are we doing to enhance our links—particularly trade links—with the Commonwealth? Since May 2010, we have put significant effort into refocusing and realigning all the FCO’s efforts on the prosperity agenda, creating firmer and greater co-operation across relevant Departments, particularly as that relates to some of the fastest-growing economies in the world, many of which are members of the Commonwealth—India, Nigeria, South Africa, Malaysia and Singapore. We are opening new missions, including a new deputy high commission in Hyderabad, and strengthening commercial teams in Commonwealth countries such as Canada, Sierra Leone, South Africa, Mozambique, Ghana, Kenya, Cameroon, Papua New Guinea and Guyana. That is why there has been such focus not only from officials at the FCO but from Ministers visiting Commonwealth countries. Again, I could provide an endless list, but I will not take up time by doing that. We understand that prosperity, trade and investment are a central plank in the relationship between the UK and the Commonwealth.

The capacity of UK Trade and Investment has been significantly expanded since May 2010, with a focus on the Commonwealth countries. Twenty UKTI teams are in Commonwealth markets, and Ministers are looking to double the number of UK companies reporting, with a particular focus on small and medium-sized enterprises, which my hon. Friend the Member for Romford rightly raised. Again, there is an extensive list of Commonwealth countries where UKTI is playing a significant role in helping to drive the all-important trade and economic agenda. A key part of that is openness and transparency, particularly on procurement, to ensure that British business has the confidence to invest for a substantial period.

One of the key points that my hon. Friend raised was on trade delegations to the Commonwealth. I take the point made by the right hon. Member for Warley that trade delegations need to be focused and outcome-based, which has been a significant thrust. Ministers have been engaged in significant trade delegations to many Commonwealth countries at a senior level: the Prime Minister led a trade delegation to Nigeria last year; the Business Secretary has led trade delegations; and my hon. Friend the Member for North West Norfolk led trade delegations to members of the Commonwealth when he was a Minister, too. I do not have a full list with me, but I am happy to provide the right hon. Member for Warley and other hon. Members with a comprehensive list of trade delegations. The most recent example that I can think of is when the Minister of State, Department of Energy and Climate Change, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), took a renewable energy delegation to east Africa with significant results.

My hon. Friend the Member for Romford mentioned access for Commonwealth nationals coming through Heathrow and other UK airports. I am happy to ask the UK Border Agency to study the card that is used, as a comparison with Asia, to determine whether a similar scheme would be practicable for the Commonwealth, too. Obviously, I will keep him informed.

The UK Government give significant support to SMEs trading with the Commonwealth. Ministers have made such support an export priority, and we are committed to doubling UK exports with the help of UKTI. My hon. Friend and other Members will be delighted to acknowledge that the Chancellor in his autumn statement announced significant additional resources for UKTI to drive that particularly important agenda.

Of course, this is not just about UK businesses exporting to Commonwealth countries; it is also about persuading Commonwealth countries, and businesses based in the Commonwealth, to invest here in the UK. There are significant examples of that from Malaysia, India and Australia. The right hon. Member for Warley rightly mentioned Bombardier, which is a significant Canadian business with significant investments here in the UK and is an example of the value of intra-Commonwealth co-operation and trade.

In the few seconds remaining, I reiterate the point that we do not see the Commonwealth and the EU as mutually exclusive trading partners. We must trade with everyone who we think can generate additional business and job creation for us. My hon. Friend the Member for Romford needs to recall that the EU is the biggest marketplace in the world. There are examples of advantages, such as the EU-wide free-trade agreement with Canada, that have significant positive benefits for the UK.

In conclusion, the Commonwealth is not only a fascinatingly rich part of Britain’s history; it is a dynamic and integral part of Britain’s future. The Commonwealth is an important part of the jigsaw of international organisations that we can, and do, use to pursue and achieve Britain’s objectives of prosperity, security and stability in the world.