Afghanistan
Baroness Mobarik Excerpts(3 years, 3 months ago)
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Baroness Mobarik (Con) [V]
My Lords, like other noble Lords, I too refer to the recent report of the House of Lords International Relations and Defence Select Committee, which stated that the UK has shown little inclination
“to exert an independent voice on policy on Afghanistan. Instead, the UK has followed the lead of the US, and has been too reticent in raising its distinctive voice.”
It is time for the United Kingdom to have confidence in its own instincts and in raising its own voice. After all, the UK has a long history with and knowledge of not just Afghanistan but the whole region.
It is also time to treat regional allies with respect—something that has been distinctly lacking from the US. Allies such as Pakistan have been on the front line and have paid a very heavy price, both in economic impact and loss of life, over these past four decades as allies of the West. This should be acknowledged. Instead, the United States has used such allies as scapegoats to distract from its own failings. The United States, and we too, must show some humility and rationality after the events of the last few days. The fact that Pakistan was excluded from the UN Security Council’s sessions on Afghanistan on 16 August beggars belief. It has a greater understanding of the Taliban and its mindset, and the political and religious dynamics of Afghanistan, than any other country. After all, it has had to deal with the FATA region within its own borders.
Conscious of the kind of murderous acts that the Taliban committed within their own and neighbouring countries, such as the brutal murder of 141 schoolchildren in Peshawar in 2014, it is difficult for me to say this, but they must be dealt with tactfully. I do not refer to formal recognition, which is a matter for our Government, but tactful engagement. The stark reality is that it is the Taliban who are now in charge in Afghanistan.
Despite Taliban assurance that everyone will be afforded safety and security, many are fleeing. Many thousands of refugees have already passed through the Spin Boldak-Chaman border crossing into Pakistan in the past few days. Chaos and catastrophe are unfolding as we speak. Pakistan and other neighbouring countries will no doubt be more than concerned about terrorists and their warped interpretation of a great religion entering their borders under the guise of refugees.
We have to admit that, despite the noble efforts of our service men and women over the past 20 years, and despite achievements in certain spheres such as education and health, things have hardly been a resounding success for Afghanistan’s economy. It is still one of the poorest nations on earth, corruption has been left to fester, and narcotics production under the recent Afghan Government was at an all-time high. As things move forward, it is incumbent on the international community to help build Afghanistan’s economy sustainably, for even more than aid, which will be necessary, it is a strong economy which will bring political stability, and ultimately peace and prosperity, to the ordinary men, women and children of that country.
His Royal Highness The Prince Philip, Duke of Edinburgh
Baroness Mobarik Excerpts(3 years, 7 months ago)
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Baroness Mobarik (Con)
My Lords, today I speak not just for myself but on behalf of my family and friends in expressing our deepest condolences to Her Majesty Queen Elizabeth and the Royal Family on the death of His Royal Highness The Prince Philip, Duke of Edinburgh. The Duke of Edinburgh has been a constant presence in our lives and it is hard to countenance his absence from our midst.
I have a very special memory of meeting His Royal Highness back in 2006, when I was invited by Her Majesty the Queen to Buckingham Palace for what was termed an intimate lunch. As well as the seven other invited guests, there were four members of the Royal Household present, including Her Majesty and the Duke of Edinburgh. I had the honour of sitting next to the Duke and to put me at my ease he began the conversation by saying “Ah, so you’re from Scotland. You know we have a house up there?”. Well, we know that the Duke was not referring to a two up, two down. We chatted about the beauty of Scotland, as well as the challenges it faced. The conversation continued for a number of hours over a lengthy lunch, touching on various subjects.
As your Lordships would expect, during that time His Royal Highness made a few provocative remarks with his dry, witty sense of humour. I will not recount them but let us say it was an interesting and fun conversation. Finally, as dessert was served and I reached out to help myself to what was offered, the Duke said in a cautionary tone, “It is rhubarb, you know”. From that I gathered that, unlike me, he was not a fan of rhubarb crumble.
It was an honour and a privilege for me to spend that unforgettable afternoon in the company of Her Majesty and His Royal Highness The Prince Philip, a truly unique and great individual who led a commendable life of public service to which we can only aspire.
For Scotland, in his name he promoted our nation around the world; through the Duke of Edinburgh’s Award he offered young people the chance to lay their stake in society; and in our interconnected world he championed the Commonwealth as a mechanism to look ahead so that together we can face up to shared challenges such as climate, conservation and the environment. For our Queen, and indeed for us all, he played a major part in ensuring that this, the second Elizabethan age, was an unrivalled period of peace, prosperity and advancement for our nation.
His Royal Highness the Duke was unique and a visionary. It reminds me of the words of Allama Iqbal, the “Poet of the East”, who died in April 1938. Just half an hour before his death, he sang out his last quatrain:
“The melodies bygone may come again, Or nevermore!
The zephyr from Hijaz may come again, Or nevermore!
The days of this Faqir are ended now, For evermore!
And yet another seer may come again or not, For evermore!”
Surely it would be appropriate to say that men such as His Royal Highness The Prince Philip, Duke of Edinburgh, are born but in centuries. With these words, goodbye, Your Royal Highness. Rest in peace. We will miss you, but we will always remember you and the contribution that you made.
Brexit: Trade
Baroness Mobarik Excerpts(8 years ago)
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Lord Greaves
To ask Her Majesty’s Government what assessment they have made of the announcement by the Australian Minister for Trade, Tourism and Investment that Australia will not commence negotiations on a trade deal with the United Kingdom, and of the implications for all future post-Brexit trade negotiations whilst the United Kingdom remains a member of the European Union.
Baroness Mobarik (Con)
My Lords, the Australian Trade Minister was clear that both Governments have agreed to start work on scoping out a future ambitious and comprehensive Australia-UK free trade agreement. The UK and Australia have agreed that this joint working will help us move as quickly as possible formally to conclude negotiations on a free trade agreement once the UK has left the EU.
Lord Greaves (LD)
My Lords, I thank the Minister for that helpful Answer. The Australian Trade Minister may or may not be right in saying that formal negotiations cannot start until such time as this country leaves the European Union, but in practical terms, and given the number of countries in the rest of the world—more than 50 in the Commonwealth and everybody else—does she believe that the process of undertaking negotiations for trading arrangements with all the other countries in the world will take place quickly after this country leaves the European Union? Is there not a real risk of a very unsatisfactory and dangerous limbo arising in most cases? What will the Government do about that?
Baroness Mobarik
My Lords, we are doing absolutely everything we can to achieve a smooth transition with no gap. The Australian Trade Minister has said that he would want to conclude a free trade agreement as quickly as possible after Brexit. This is the UK Government’s position, too. We are in the position of scoping discussions to move as quickly as possible.
Lord Forsyth of Drumlean (Con)
My Lords, will my noble friend confirm that there is no EU free trade agreement with Australia; that for years it has tried and failed to achieve one; that one does not need a trade agreement in order to trade; and that once we have left the European Union, we will be able to negotiate our trade without having to satisfy 27 other countries?
Lord Purvis of Tweed (LD)
Has the Minister seen the website of the Australian Government Department of Foreign Affairs and Trade website, which states:
“What does Brexit actually mean? … Leaving the EU will take the UK years. How many is unclear”?
If noble Lords will forgive me, I will read from the website a little further:
“The UK will need to complete Article 50 exit negotiations with the EU, and determine its domestic trade and regulatory settings before it is able to negotiate FTAs with third countries, such as Australia”.
Does the Minister agree? The Australian Government also say—
Lord Purvis of Tweed
The Australian Government also say:
“The Government is seeking clarity from the UK Government on its expected approach to EU departure”.
Are the UK Government providing that clarity to the Australian Government and, when they do so, will they provide it to this Parliament, too?
Baroness Mobarik
I am sorry, but I only half-heard that question, first, because of the enthusiasm of my noble friends behind me but also because of the length of the question or questions. Perhaps the noble Lord would pick out one question and then I will answer.
Lord Deben (Con)
What estimate has my noble friend made of the value of the additional trade that would be available to the United Kingdom through a free trade agreement or agreement under very special arrangements with Australia that is not now available to us as a member of the world’s largest trading community, the European Union?
Baroness Mobarik
I do not have figures for what might happen. All I can say is that we currently have about £10 billion worth of trade in goods and services with Australia. We are in the fortunate position of having the same legal system, the same language and the same culture, which are all positive factors in negotiating a free trade agreement further to enhance what we already have.
Baroness Mobarik
I agree that there is still much potential for the United Kingdom once we leave the EU. We obviously want to retain the business that we already have with the EU, but beyond that there is scope for increase and that is why we are embarking on these scoping exercises. My noble friend Lord Price has visited more than 15 countries in the last few months and spoken with 200 businesspeople. We will continue to do that good work ahead of leaving the EU.
Lord Harrison
Can the Minister give an example—one example—of trade with Australia that is forbidden now because of our membership of the European Union?
Baroness Mobarik
As far as I am aware there is no forbidden trade with Australia. We want to enhance what we already have, in terms of regulatory reforms and so on.
Baroness Ludford (LD)
My Lords, it is sometimes suggested that the EU inhibits trade, so why does Germany, a member of the EU, do far more trade with India than we do? The EU is not stopping us. Is it not true that the EU levers open markets with the clout of 27 members, which is a great deal more than the clout of one member?
Baroness Mobarik
All I can say is that the UK remains committed to being a world leader in free trade. That is our goal. We want to secure open and productive trading relationships with all our trade partners. It is not a matter of choosing one or the other; we are focusing on everyone.
Lord Kilclooney (CB)
Is the Minister aware that Australia has stated that it is keen to have a trade agreement with the United Kingdom so that its wine will enter this country cheaper than at present?
Baroness Mobarik
Of course Australia will have its own interests in terms of exporting its wine, its beef or its dairy products, but we too have our own interests in terms of exporting our motor cars and so on. Of course it has to be of mutual benefit to both countries.
Lord McColl of Dulwich (Con)
My Lords, could it be by some quite unimaginable stretch of the imagination that those noble Lords who keep moaning about Brexit are trying to justify the dire warnings about what would happen if we did leave—for instance, a third world war? As the Minister and I come from the fair city of Glasgow, would it be appropriate to say to these people, “Haud yer wheesht”?
Baroness Symons of Vernham Dean (Lab)
My Lords, I declare an interest as the chairman of the Arab-British Chamber of Commerce. Can the Minister confirm that there is nothing to inhibit discussions, and indeed agreements, on memoranda of understanding over trade even while we are a member of the European Union and that such memoranda of understanding might well then form the basis for trade agreements after we leave?
European Union and Canada: Comprehensive Economic and Trade Agreement
Baroness Mobarik Excerpts(8 years ago)
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Baroness Falkner of Margravine
To ask Her Majesty’s Government what assessment they have made of the current state of negotiations of the Comprehensive Economic Trade Agreement between the European Union and Canada; and what lessons they have drawn from these negotiations.
Baroness Mobarik (Con)
The UK remains fully supportive of CETA and of the EU’s wider trade agenda. We have been working closely with the Commission and other member states to enable signature of this agreement to take place, and negotiations are continuing in Brussels today. As noted by the Prime Minister, we are not looking to replicate a model that another country has; we want to ensure that we have the right deal for the United Kingdom.
Baroness Falkner of Margravine (LD)
I thank the noble Baroness for her reply. I wonder whether she recognises these words: Brexit,
“means immediately seeking Free Trade Agreements with the biggest prospective markets as fast as possible. There is no reason why many of these cannot be achieved within two years. We can pick up the almost complete agreement between the EU and Canada, and if anything liberalise it”.
In case she does not remember them, they were written on the website of Conservative Home by the current Secretary of State for Exiting the European Union, Mr David Davis. Do the Government still believe that their bespoke deal can be delivered in two years? What bilateral talks are they having with other EU member states to prevent the UK deal being a “mixed” agreement, needing ratification in over 30 assemblies and parliaments?
Baroness Mobarik
I thank the noble Baroness for that. I think that there were several questions there and I shall attempt to answer at least one of them. The UK is unique and the deal that we negotiate will be bespoke. The relationships that Canada and the UK have with the EU are very different. We are an EU member state, whereas Canada is not. The UK is an important market for the European Union and therefore an ongoing trading relationship is in the EU’s interests.
Lord Forsyth of Drumlean (Con)
My Lords, is my noble friend not rather tired of these Moaning Minnies? Today we learned that the economy has grown by 0.5% and has not gone into recession. We also learned that Nissan is going to build its cars in the north-east. Should we not take a positive view looking forward, and is not the lesson of the disintegration of the Canada deal that it is extremely difficult to negotiate with and involve 28 countries and 28 interests? In the future, we will be able to decide for ourselves.
Lord Howarth of Newport (Lab)
My Lords, will the Minister not accept that CETA was cooked up all too secretively between officials and corporate lobbyists; that it is no less objectionable than TTIP; that giving power to corporations to sue Governments in an international tribunal when they think that their anticipated profits might be jeopardised by new laws is not compatible with our parliamentary and judicial traditions; that this House ought to record its gratitude to the stout Walloons for blocking it; and that we should be extremely wary of the General Agreement on the Trade in Services, which is the next one looming?
Baroness Mobarik
In terms of scrutiny, we are not going against procedures; we followed the usual procedure and responded in detail to the concerns raised by the scrutiny committees in both Houses. There will be debates, such as this afternoon’s debate on global free trade, votes on the great repeal Bill and, very likely, votes on any new arrangements and consequential legislation. We want to offer maximum transparency and scrutiny as long as we do not compromise our negotiating strategy.
Lord Tebbit (Con)
My Lords, does my noble friend not agree that what we have seen in the negotiations between the European Union and the Canadian Government is an example of totally dysfunctional, incompetent and blundering government in Brussels? There is no democratic way in which that can be altered. Does that not make a very strong case for getting out from that shambles as fast as we can?
Baroness Mobarik
We regret that agreement has not been possible by all member states at this stage. The UK hopes that agreement is reached swiftly in order for it to be signed. However, the UK continues to support the EU’s trade agenda, including CETA. It is an important trade agreement for the UK, with an economic benefit to UK business while we remain in the EU estimated at £1.3 billion.
Lord Reid of Cardowan (Lab)
My Lords, is not the point shown by the Canadian negotiations that seven years of work have been scuppered by a sub-state institution inside Europe? Do the Government recognise the difficulties of the path on which they have embarked, for there are sub-state entities in the United Kingdom, such as the Scottish Parliament, and in every other state in Europe? Can the Minister therefore assure us that in this complex, huge, interlocked series of negotiations there are no issues which require other than qualified majority voting? In other words, is every single aspect of this negotiation free from the prospect of a unanimous decision being scuppered by a sub-state institution, here or in Europe?
Baroness Mobarik
We want the best deal for the whole of the United Kingdom. The UK is a unique case. We want to negotiate something bespoke, but that is not to say that we are not looking at every single region of the United Kingdom to see what is best for it.
Industrial Strategy
Baroness Mobarik Excerpts(8 years ago)
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Lord Haskel
To ask Her Majesty’s Government whether they have prepared their industrial strategy; and, if so, what it is.
Baroness Mobarik (Con)
My Lords, we are in the process of developing an industrial strategy that will embrace the opportunities of our new global role and upgrade our economy so it works for everyone. We are working with the breadth of British industry, local leaders, innovators, employees and consumers to deliver a successful strategy and create the conditions for future success.
Lord Haskel (Lab)
The Prime Minister, too, has called for an economy that works for everybody and for business to be more responsible. Does the Minister agree that Section 172 of the Companies Act 2006, which requires directors and managers to have regard to the interests of employees, customers and suppliers, as well as shareholders, does just that? However, this section has never been enforced, so will the Government include enforcement of Section 172 in their industrial strategy and so carry out the policies of the Prime Minister?
Baroness Mobarik
I assure the noble Lord that the Prime Minister has made it clear that this new industrial strategy will work for everyone. We are looking at exactly those kinds of issues, such as increasing the scrutiny of our large public and private companies and enabling more informed corporate decision-making. We need to give employees and stakeholders a stronger voice in company boardrooms and we will consult fully with business investors, employee representatives and other stakeholders on the best way to do this. We will welcome your Lordships’ input.
Lord Cormack (Con)
My Lords, I warmly congratulate my noble friend on her appearance on the Front Bench. It is the second time she has taken a Question and nobody was able to thank or congratulate her last time. Will she discuss with her ministerial colleagues the substance of this Question and say that, while we appreciate the general statements, we look for some detail soon?
Baroness Mobarik
I say to my noble friend that something like this cannot be done overnight. The Prime Minister is absolutely determined to get this right. She wants to lay out a proper industrial strategy, engaging with stakeholders across the country and making sure that we deliver a strategy that makes a difference, and that takes time. We have already started the process and we will develop it over the coming weeks and months. We plan to publish a Green Paper alongside the Autumn Statement which will consult widely with business, local leaders, investors and so on. As I said before, I encourage noble Lords to engage with this Green Paper.
Lord Fox
My Lords, I declare an interest in GKN and Smiths Group. At this week’s Science and Technology Select Committee, the Science Minister from the other place was unable to describe to us what the intention of an industrial strategy would be. Given that the last Parliament put in place a long-term industrial strategy, what role will that play in this long-term industrial strategy, and can the Minister explain to us what it is?
Baroness Mobarik
As I said, we are consulting on it just now, and it will not happen overnight. However, I can say that we will focus on our strengths. That does not mean to say that we are just picking out winners. We are tailoring our approach to the needs of different sectors and looking at our proven strengths—a cornerstone of good strategy—and this country has no shortage of those, such as our world-beating aerospace and automotive industries. We recognise that we must continue to support our successful industries and build upon the significant progress that has been made through the existing sector strategies. However, we need to create an economy where new entrants can come in, new businesses can be created, and new companies can challenge incumbents.
Lord Monks
My Lords, in a recent statement, the Prime Minister specifically mentioned worker representation on company boards of directors, and she is receiving support from some surprising quarters—not just the TUC but Legal & General, Aberdeen Asset Management and others in the investment community. Perhaps I may press the Minister a little further to say exactly how and when this particular exercise will be carried out, with the Government giving effect to the Prime Minister’s wishes.
Baroness Mobarik
This will be part of the Green Paper. However, I do not want to pre-empt public debate on the discussion document that we will be publishing later this year inviting views on a range of options for strengthening corporate governance, including strengthening shareholder powers on executive pay and giving a stronger voice to employees and other stakeholders on company boards.
Lord Elton (Con)
My Lords, does my noble friend realise how welcome it is to many of us to find that we are reverting to the well-proven means of producing good policy, which is to have a Green Paper and a White Paper and then to do it?
Lord Ashdown of Norton-sub-Hamdon (LD)
My Lords, I draw the Minister’s attention to the fact that, following the more than 250 job losses in Yeovil, I recently wrote to the Secretary of State asking whether the preservation of Britain’s only stand-alone production capacity for helicopters in Yeovil would be part of a national strategy. He has not yet replied. Can she tell me whether it will be or not?
Baroness Mobarik
I cannot give any specifics on that, other than to repeat that we are looking at all our sectors and at the whole industrial strategy. We are looking at various methods of improving how we do things to build an economy that works for everyone the length and breadth of the country.
International Trade Opportunities
Baroness Mobarik Excerpts(8 years, 4 months ago)
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Baroness Mobarik
That this House takes note of the global opportunities for trade and of the case for Her Majesty’s Government having a comprehensive strategy to further encourage and support Britain’s businesses to engage internationally.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, by all means leave the Chamber if you are on the way out, but may I ask those exiting to do so quietly? My noble friend is trying to introduce this debate, but if anyone wants to leave now and go that way—do they want to go now?—they can do so while I am talking. I encourage my noble friend to start again.
Baroness Mobarik
My Lords, during the past few weeks, our focus has been on the EU referendum of 23 June and the result to leave after 42 years of membership. We are clearly entering a period of very significant change in the UK economy and in commercial relations between us and the EU. There is rightly a great deal of concern, as there is such a substantial degree of integration between the UK and EU economies. These cannot be disentangled overnight, and nor should they be. It is imperative that we maintain our access to the single market and that we negotiate the best trade relationships with the EU. I have every confidence that my colleagues will lead Brexit discussions to protect and enhance our trading position with the EU.
What we must not allow is a state of paralysis as we try to extricate ourselves from the EU and its institutions, and we must not ignore the absolutely crucial need to develop business opportunities with the rest of the world. If we accept that the degree of access to the single market may affect the types of agreements that can be negotiated elsewhere, the task has to start now—and simultaneously with the Brexit negotiations. While many of us may have serious misgivings and concerns about the impact of the referendum result, there is a general consensus that going it alone has one obvious plus: it allows us to be nimble and flexible. After all, it is one of the reasons that so many voted for an exit from the European Union. We now need proactive engagement with the rest of the world. It will by no means be from a standing start but we have to work to make it greater.
It may be useful to remember that the highly developed markets of the US and the EU have relatively slower growth than the emerging markets. We have of course been aware for some time that the world’s centre of gravity has been shifting eastwards and that building trade links with emerging markets is essential. In recent years, we have witnessed closer economic ties between Britain and China; the Chancellor’s support for the Asian Infrastructure Investment Bank illustrates this well. China has a maturing economy that is ripe for the services and luxury goods that are Britain’s strengths, but certain markets have been ignored to a large extent in the past. We must now take the opportunities wherever they are to enhance our relationships, and in particular to re-engage with the Commonwealth, where we already have such strong historical ties and a special relationship, which we have not taken advantage of fully.
The Commonwealth accounts for around 10% of UK trade; that has remained stable over the last decade. Among the Commonwealth countries, Australia, India, Canada, Singapore and South Africa are the largest of the trading partners. However, with the Commonwealth we are provided with a spectrum of economies at various stages of growth, from the developed and advanced economies of Australia and Canada all the way to some of the fledgling economies in Africa that really need support. In between, there is the exciting frontier of fast-emerging and fast-growing economies, such as those of India, Pakistan and Bangladesh.
IMF reports show that the developing and emerging economies’ share of global GDP has increased to 55.1%. I suggest that we require much more additional resource to establish proactive and dedicated campaign teams for particular regions—essentially, a task force working with existing departments and institutions to strengthen our commercial trade and business links with countries outside the EU. These campaign teams should be results-driven and run like a business. Unusual times and circumstances mean that we have to think out of the box—so we should have fewer reports and more action.
This is not to say that business organisations have not already been working hard in seeking global markets, but, by being liberated from the constraints that the EU inevitably presents as it seeks to balance the needs of its many members, the UK should be able to be more targeted in developing these commercial relationships through a highly tailored approach by country, region and sector.
I must acknowledge the work of the Foreign and Commonwealth Office through its embassies, high commissions and consulates that do such a fine job in building trade relations—but they have to be strengthened, as does UKTI. For example, one Commonwealth country in which I have an interest, as the Prime Minister’s trade champion in Pakistan, has huge potential yet there is not even one person at UKTI dedicated to developing business with it. I had the honour of representing the UK Government in Karachi last October when, for the first time, it held one of the Great British Festival events that promotes the Great Britain brand. The very small and dedicated team at the consulate had done a great job but we need to do so much more for a market which has been given emerging status and has a population of 200 million people, the vast majority under the age of 30. Although I am keenly aware that issues such as security have been an impediment to this potential trade, the arguments for engaging with this market are now too many to ignore. Apart from its significant population, its vast natural resources and a growing middle class with purchasing power are key attributes.
I hope that noble Lords will bear with me if they have heard this before, as I have previously highlighted these points and opportunities in another debate, but it is important to remind noble Lords that the Chinese investment of $42 billion in an economic corridor—a network of roads, railways and pipelines to transport oil and gas—enables China to develop a cheaper and shorter route to trade and investment with the Middle East, Africa and Europe. It links China, all the way through Pakistan, to the port of Gwadar on the Arabian Sea. According to analysts, it will place Pakistan at the heart of four out of the five fastest trade flows in the world. The UK has the potential to engage there in a number of areas: in energy, infrastructure, agriculture, dairy and of course education, which is key to building a skilled workforce for this emerging economy.
Pakistan is a good example of somewhere with which we already have some business links but where there is lots of room for growth. Preconceptions about security, corruption and the difficulty of doing business —in Pakistan in particular but non-western countries in general—need to be challenged, with a more realistic appraisal provided by trade organisations and the FCO. One thing that can help, and where we are well placed to deliver effectively, is our capacity-building skills and consultancy generally. These emerging economies are crying out for this. Education, which I have mentioned, is another area of expertise where we could be doing so much more across the emerging economies of the Commonwealth. High-value engineering, fashion retail—where we are possible world leaders—and of course financial services, which probably deserves a whole debate in itself, are all areas within our capacity.
But while we scope out our strategy for the future and where we want to be 10 years hence, we must also ensure that our teams pursue policies that will provide a future for those left behind in society, in particular by developing our manufacturing base. It is about being outward-looking, and engaging globally—but that means looking to home, and building and supporting businesses here. The last two days of debate on the outcome of the EU referendum have highlighted the concerns of many noble Lords that we have real issues of inequality and disparity in our society. So this must be a time for collective thinking—for creative thinking.
It is the small and new businesses which continue to revolutionise the economy of this country. The talents of people from all regions of the United Kingdom—from the north of Scotland all the way to the most southern regions of England and Wales and Northern Ireland—will take us forward. If we want to export, we have to make things. We must increase and expand our manufacturing base and output. The very substantial regional and generational inequalities have to be tackled, and having a goal to promote Britain abroad is a great way to take everyone forward together. It is time to invest in entrepreneurship and to teach and provide the young with certain skills. This is already being done in many schools but needs ever-greater attention. It is crucial that we persuade potential investors that the UK’s infrastructure and policies are among the most attractive in the world for manufacturing. I will make one important point here today: the UK has underinvested in infrastructure and we are hesitating once again in our commitment to airport expansion. This cannot be right at such a crucial time for our country and our economy.
As a student of history, I spent many hours trawling through the dusty archives of the Mitchell Library in Glasgow when I was carrying out some postgraduate research—which, I hasten to add, never saw completion. I recall the sense of awe when uncovering old company documents and reading of the great trading nation that Britain was. As a small island with a small population, Britain was the most advanced economy of the 19th century. Of course, the circumstances were quite different—we had the advantage of leading the industrial revolution—but there was something else there: determination and a strong work ethic. The degree of entrepreneurship and the fearlessness in exploring new geographies around the world was really quite remarkable.
With globalisation, we are so much more inter- connected, and in some ways that should make it easier. But we require leadership and the right conditions for business to flourish—venture capital investment and finance for small and medium-sized enterprises, and proper connectivity. There is one great plus that I can see from leaving the EU; with any luck, there will be a reduction in red tape and bureaucracy, which has for so long stifled SMEs. Perhaps now we can develop conditions whereby public procurement can benefit small companies.
I can say from my own experience of business just how dismal a scenario it has been. OJEC has required the kind of resource that small businesses just do not have. OJEC, or the Official Journal of the European Community—or now OJEU, the Official Journal of the European Union—is the publication in which all tenders from the public sector which are valued above a certain financial threshold according to EU legislation must be published. It is one rule that it will be a relief for companies such as mine to flush away—and let us refrain from putting other red tape in its place. We now need more doing and less paper-pushing.
Finally, we ought to develop a “Built in Britain” brand: something that stands for quality and longevity. It requires collective thinking from industry and government and requires an aggressive mix of bureaucrats and business people to make it happen. We need a Built in Britain brand which carries everyone with it and is part of the nation building that is so badly required—a banner under which we can export to the rest of the world.
In closing, I ask my noble friend the Minister to perhaps give us some indication of the current thinking of Her Majesty’s Government on the global opportunities for trade post Brexit.
Baroness Mobarik
My Lords, I thank my noble friend for her comprehensive reply. I also thank all noble Lords who took part in the debate.
I know that there is no time to say much more than that, but I will address one point to the noble Lord, Lord Stoneham. I assure him that this debate was not scheduled in different political times; it was most definitely scheduled after the result of the EU referendum. After the initial shock and dismay at that result, in the words of my noble friend Lord Green we are where we are and we have to move forward. I always like to see the glass as half-full, so this debate was about how we energise ourselves to move forward and take urgent action to scale up our efforts. I thank the House again for allowing this debate.
Outcome of the European Union Referendum
Baroness Mobarik Excerpts(8 years, 4 months ago)
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Baroness Mobarik (Con)
My Lords, one word stands out in reference to the recent EU referendum: “division”. The most reverend Primate the Archbishop and many noble Lords have stated this today. It was a divisive campaign—some would say by both sides—but the divisions were clearly already simmering and ready to surface when conditions allowed: divisions within our political parties and within our society, and divisions along national lines. In Scotland, the SNP Government, apparently unwilling to accept the legitimacy of a UK-wide referendum, are already calling for another independence referendum and fomenting fresh divisions north of the border.
Of course, I would like to think that the majority who voted to remain in the EU or to leave did so purely on a point of principle. For those like me, the economic argument for staying in the EU was obvious and, as a former chairman of CBI Scotland, I made those arguments on numerous occasions on behalf of members. However, as the owner of a small software company, I could also understand why others would see the EU as an overly bureaucratic machine that impacts on small business in particular in a negative way. That is neither here nor there. We have the result to leave the EU and we must begin the task of developing a new strategy to succeed economically and globally. I point noble Lords to a debate on Thursday on this subject.
Today, I confine my remarks to that word “division”. What has emerged from this referendum is that a whole swathe of the population harboured real resentments and their vote to leave was a means of protest. The social and economic gap that has grown over recent decades has created an inequitable society. That is a ripe condition for blame, particularly for blaming those who look different, speak a different language or have a different culture or religion. Of course, the vast majority of British people who voted to leave the EU did so as a consequence of their genuine concerns. However, there were those on the leave side who disgracefully drew on those resentments and fears when the sole focus became immigration. There is only one word for it, one that we do not like to use but the only one that fits: racism. This has not just been about people from the EU. That infamous poster with Nigel Farage said it all. The racist attacks and verbal abuse since the referendum reflect that this is not just about EU citizens. The P-word and N-word have been used abundantly. Indeed, this has been of such concern in the days since the referendum that the Prime Minister and other senior politicians have made public statements condemning such behaviour.
Since 1968, successive Governments in this country have worked hard to bring about a more cohesive society through race relations and equality legislation. The United Kingdom has been by far the most successful in Europe in giving equal rights to its citizens. That is why this is such a great country to live in and why anyone who comes here loves it and has such loyalty towards it. We have come a long way from 1968 and Enoch Powell’s rivers of blood speech. We do not want to go backwards. I remember that time well and the negative impact that it had on me personally as a little girl in primary school. When you are on the receiving end of prejudice, it has a whole different perspective. It leads to feelings of rejection, alienation, anxiety and depression. Make no mistake, it is not just about overt racism; covert racism can be just as damaging. Those who are sensitive to it and know that it is directed at them recognise it in the most fleeting expression. Every one of us has constantly to question ourselves about our own prejudices if we want to build a strong society and real national pride. Politicians and the media perhaps have the biggest responsibility of all.
Ethnic communities of many hues have enriched the lives of this nation. The food that we eat, the colours and clothes that we wear and the music that we listen to have changed beyond recognition from the days when I came to live here as a child. Many people have come to these shores—Irish, Jews, Italians, people from India, Pakistan and Bangladesh and from the Caribbean, and the recent migrants from Poland and elsewhere in Europe. They, and the many others from around the world, have all contributed immensely to this country. Those who may have come to exploit it are a disgrace, but they are just a small minority. Overwhelmingly, what the newcomers bring is their energy and ambition to build a new life and to do well. That means having a strong work ethic and often an entrepreneurial spirit.
My late father came to this country from Pakistan and worked hard, employing more than 500 people in his various businesses in the 1970s and 1980s. He paid his taxes, he believed in public service and he was a model citizen. That work ethic was a value that he shared with mainstream British society. What we must do now is to build on these values again—and with fresh energy.
Finally, if we were to baton down the hatches and not allow any more immigration, as some would wish, I would make a gentle reminder that the many hundreds of jobs—in the NHS and agriculture, in the hospitality industry, in transport and in every sector—would still have to be done. Enough home-grown Brits would have to be willing to do them.
I urge the Government, under their new leadership, to refrain from the scapegoating of immigrants that some in our main political parties and certain sections of the media have found politically expedient of late. There is a very positive story to be told about the huge contribution made by immigrants to our country. It was not very well told in the run-up to the referendum, but together we can get this message out now. As we move forward, it is important that our Government clarify their objectives on immigration and the means by which to achieve them.
This is a wake-up call to mend our country, to tackle poverty by providing jobs through small-scale manufacturing and other routes, to engender that work ethic and to encourage enterprise. It is a huge task, but one that cannot be sidestepped if we are to avoid social unrest and if we want to continue to be a great nation. We have to learn to respect and value each other’s contribution and our national leaders have to lead the way.