Exports: Africa and the Commonwealth

Baroness Fairhead Excerpts

Monday 27th November 2017 Lords Chamber

[The Minister of State, Department for International Trade (Baroness Fairhead) (Con) (Maiden Speech)]

My Lords, it is an extraordinary honour and privilege to address your Lordships’ House. As a tomboy growing up in the north-east, I defy anyone to have predicted that I would be standing here today, and I do so with humility.

I congratulate my noble friend Lord Popat on calling this important debate and on being such a great champion of international trade. I look forward to addressing some of the challenges raised.

While spending most of my life outside politics, I have never doubted the significance and seriousness of this place. About 20 years ago, I spent a day visiting this Chamber and the committee rooms as part of the Industry and Parliament Trust. I was impressed by the quality of debate, the rigour of the analysis and the sage advice from these Benches, and that respect has never wavered.

But over the past few weeks, I confess also to being bowled over by the generosity, warmth and exceptional levels of patience shown from right across this House. I particularly thank my noble friends Lady Evans of Bowes Park, the Chief Whip, Lord Courtown, Lord Younger, Lady Sugg and Lady Neville-Rolfe, who have been a source of immense support. So too have the doorkeepers, police officers, the Clerk of the Parliaments and Black Rod, who have guided me through the mass of corridors, procedures and protocols with unfailing accuracy—and welcome smiles. Finally, I offer my special thanks to my supporters, my noble friend Lord Sherbourne and the noble Lord, Lord Burns, whose wise counsel both now and through the years has been utterly invaluable.

So why, after three decades in the private sector, do I now feel drawn to public service, and to international trade in particular? It is because I think it matters, and no more so than now. I believe that business should and can be a force for good. I have seen companies large and small bring jobs, opportunity and hope to families up and down the country. I have seen the private sector rise to the challenges on national issues, whether to support universities or to support the peace process in Northern Ireland, and I am proud to have played a small part in the Northern Ireland Challenge, a private sector initiative aimed at building economic wealth.

However, business can only succeed if government responds to its needs, provides the right environment and gives the right support. Nowhere is that more critical than in the area of international trade, and here I hope to be of some help. International trade has been one of the three defining elements in my life, alongside family and education. My parents grew up in the tenement buildings of Leith in Edinburgh; none of their predecessors had been to university, but, supported by their families, their lives were transformed by university and actuarial education and the opportunities of international business. For my part, that support of a loving family and education at Yarm grammar school, Cambridge and Harvard opened up a world of opportunities, allowing me to work for global companies in sectors as diverse as chemicals and education, financial services and aerospace.

Family remains at the heart of my life, and it certainly keeps me grounded. I remember an occasion, just after I had been promoted, when my children left a screensaver on my computer. It was a picture of a tractor on top of a telegraph pole and it read: “Just because you’re at the top doesn’t mean you’re useful!”. Such darlings. But they made an important point; we all need to stay useful.

I believe that the most successful businesses are those that focus on clear, inspiring goals with everyone working towards that end. This requires genuine collaboration, where challenge is embraced and addressed, not shied away from. This is true for government too. Our ability to drive real change depends upon collaboration—across departments, across countries, across parties—towards a shared goal, and I think that we have some today that we do share.

I turn first to Africa, a glorious, dynamic region whose workforce is predicted to exceed that of China and India by 2034, and where business spending and household consumption is growing. Yet, as many noble Lords pointed out, the UK is not taking full advantage of these huge trading opportunities. Indeed, although UK trade with Africa has doubled since 1999, trade with this great continent has decreased since its peak in 2012. There must be no shying away; we need to act.

The good news is that by focusing on Africa there are some signs of building momentum. Over the last year, UK goods exports to sub-Saharan Africa have grown. A key goal for the Department for International Trade, established just over a year ago, is to help businesses increase exports and investment. This involves firing up, galvanising and supporting the ambitions of UK companies to export more by removing barriers to trade, giving tailored support, promoting the UK’s capabilities and opening up new markets. I hope that noble Lords will be pleased to hear that those things will form the backbone of an export strategy on which I will be leading and will be asking for input from noble Lords in the new year.

The noble Viscount, Lord Waverley, called for an improvement in information and asymmetric access to information. He also talked about a multidimensional logistics platform. I want to engage with noble Lords on such areas to see how we can build that into our programme.

A number of noble Lords—notably the noble Lord, Lord Chidgey, and my noble friend Lord Popat—talked about the need to focus on SMEs. I absolutely agree. This is a national asset that we should galvanise and we are starting to do that. Seventy-nine per cent of £3 billion of UK finance has gone on SMEs. They are supported by a network of ITAs and by the GREAT.gov.uk website, where they can identify opportunities. But there is more that we can do and I look forward to working with your Lordships on that.

However, this debate is about Africa and the Commonwealth, so what does that mean in practice for Africa? I shall give your Lordships a flavour. We are being clearer about our priority sectors and markets, focusing on opportunities where UK companies have both the appetite and the capacity to compete. As my noble friend Lord Howell said, we need to look at the trend, not the statistics, and that is very important in Africa. We have doubled the funding available in most African countries through UK Export Finance to over £20 billion, and we now provide financial support in six African currencies for projects that involve UK suppliers. In Uganda, for example, UKEF has supported the construction of an international airport at Kabaale, pulling through £100 million of exports for UK businesses. Here, I pay testament to my noble friend Lord Popat, who has been utterly instrumental in championing that region.

We are also trying to improve co-ordination. One of the nine newly announced regional trade commissioners will be based in Africa, and next month we will launch the Trade Services Unit with a data hub platform as a one-stop shop for business leads and information. We have established an innovative, consortia-led approach to infrastructure projects with the Africa Infrastructure Board. It was established by the DIT Africa team and had its inaugural meeting in Johannesburg in September. Through this approach, we hope that the board will help land the biggest infrastructure deals where we have real experience on the continent, pulling through the UK supply chain.

We are also investing in critical Government- to-Government relationships, with eight ministerial visits in the last year, including those by the Secretary of State to Uganda, Ethiopia, South Africa and Mozambique. I have visited Africa many times. It is a truly great continent and I look forward with relish to making my first visit there as a Minister early next year.

These visits are augmented by the excellent work of our superb embassy staff. I noted the concern expressed by my noble friend Lord Risby about the embassy staff and their disconnection in terms of their locations. I am advised by my officials that we have over 300 visa application centres around the world and that the average processing time is less than eight days. My officials are working closely with Home Office colleagues and I will ensure that my noble friend’s comments are passed on. My noble friend Lord Risby has been an excellent trade ambassador and I commend him for what he has done in Algeria.

I shall be working closely with DfID and the FCO to help developing communities across Africa. That is why I come on to the important point about EPAs and unilateral trade preference schemes. The noble Lords, Lord Mendelsohn and Lord Chidgey, asked about this policy. We will try to roll over in the first instance all the existing ones with the intention of going further. The noble Lord, Lord Chidgey, asked some specific questions and I will write to him on those points.

The noble Lord, Lord Bilimoria, asked probing questions about the trade deals. We have working groups set up to establish these. We cannot enter into negotiations until we have left the EU but these groups will be working to build more business.

There is much more to do. At the G20 this year, my right honourable friend the Prime Minister signalled a new long-term approach to Africa. We are taking on this challenge and I expect to come back with progress at a later date.

Noble Lords also mentioned the importance of Britain harnessing the ties of the Commonwealth. As a seven year-old I remember attending the Commonwealth Games in Edinburgh. It is a true family of nations, as the noble Lord, Lord Taylor, so eloquently described. The Government hope to rekindle that shared spirit when hosting next year’s Commonwealth Heads of Government Meeting and welcoming 52 Heads of Government. I pay significant tribute to my noble friend Lord Price for his immense contribution. CHOGM is a spectacular opportunity. The first time we host the event it will have four areas of focus: trade and prosperity, sustainability, new security challenges and fairness. A Cabinet Office team is working on the actions to feed into that agenda and I would like a number of tonight’s points to be fed into it.

My remit is clear: I want to make a difference—or, to use my children’s words, to remain useful. The prosperity and stability of Africa and Commonwealth trading partners is inextricably linked to our own. We have started to see the green shoots of improvement but there is a lot to do. Now is the time to grab the initiative. We will need to work across government with businesses and trading partners. I want to harness the considerable experience and expertise in this House and would like to hold a meeting in early January to share these views with noble Lords and to take further views and suggestions. I conclude simply by saying that I very much look forward to working with you and to building on this incredibly important agenda for this country.

House adjourned at 9.37 pm.