Oral Answers to Questions
Graham Stuart Excerpts(5 years ago)
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Jack Lopresti (Filton and Bradley Stoke) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I am working closely, as are my colleagues across Government, to make sure that the freeport policy will be successful, and will help bring regeneration, jobs, opportunity and prosperity to every part of this United Kingdom.
Ross Thomson
Given Aberdeen’s new harbour expansion, which is supported in part by UK Government investment, and a growing cluster of subsea businesses near Aberdeen International airport, does my hon. Friend agree that freeport status for Aberdeen could help to turbocharge the engine room of the Scottish economy?
Graham Stuart
My hon. Friend is correct in his assertion that freeports have the potential to drive growth in towns and cities across the UK, enabling them to make the most of Brexit opportunities. We are working hard to design a model that delivers optimal benefit for the UK and specific locations. Where appropriate, we will work with the devolved Administrations on this matter, but it would be helpful if the SNP showed more enthusiasm for something that could make a big difference.
Jack Lopresti
Does my hon. Friend agree that freeports could hugely benefit and provide great opportunities for the south-west regional economy? What plans will he put in place to ensure that local communities around freeports benefit economically?
Graham Stuart
I am grateful to my hon. Friend—no one in the House works harder to promote their area than him. Freeports offer an opportunity to unleash enterprise. We want to set forth all the principles and wealth creation that the Labour party stands against, and to allow my hon. Friend’s constituents, and the communities he represents, to prosper and grow through free enterprise, and we will carry on doing that.
Kerry McCarthy (Bristol East) (Lab)
The Prime Minister has suggested that there would be about six freeports. What assessment has the Minister made of the impact that that would have on ports that are not chosen to be freeports?
Graham Stuart
The hon. Lady makes a serious and important point. We are working hard and closely with our Treasury colleagues and others to ensure that we design the policy in the right way so that we minimise displacement and bring in additional activity and prosperity. We do not expect, and we will not design, a system that will damage those ports that do not become freeports.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Kevin Hollinrake (Thirsk and Malton) (Con)
Sylatech is a precision engineering business in Kirkbymoorside in my constituency, but it is suffering a significant business impact due to control delays on its export licence applications. Will my hon. Friend update the House with a timescale to resolve that problem?
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I congratulate my hon. Friend on working so hard to promote businesses in his area. I am delighted that our performance in dealing with licence applications is good, and I pay tribute to those who work in the Export Control Joint Unit. Some 80% of applications are concluded within 20 days, and 96% within 60 days. In some cases, complex issues have to be assessed, but we will do everything that we can to facilitate and accelerate the decision on the case raised by my hon. Friend.
Barry Gardiner (Brent North) (Lab)
The House recently passed a statutory instrument to extend EU protection against extraterritorial lawsuits under the US Helms-Burton Act. The Secretary of State will know that investors are already speaking with law firms to launch dispute proceedings against the UK under long dormant bilateral treaties. What estimates has she made of the quantum of such suits, and what protections will she introduce to safeguard the public purse and public policy?
Stephen Crabb (Preseli Pembrokeshire) (Con)
To avoid freeports just displacing activity, does the Minister agree that freeport activity should be based on the existing unique and distinctive capabilities of a port, such as Milford Haven, the UK’s leading energy port, which has an unrivalled skills base and infrastructure?
Graham Stuart
My right hon. Friend is quite right. The design of the policy is vital. Optimising existing strength is an important part of ensuring that the policy is a success.
Jo Stevens (Cardiff Central) (Lab)
Martin Vickers (Cleethorpes) (Con)
Returning to the issue of freeports, the Secretary of State visited Immingham in my constituency last year and saw for herself the great opportunities that exist to improve the local economy. Will she continue working with me to ensure that the Humber ports do indeed receive freeport status?
Graham Stuart
As I represent a constituency in the Humber area, I will continue, without giving any special status, to ensure that we liaise with my hon. Friend, but he is so right. Conservative Members are focused on trying to find policies that open up investment and bring in further jobs, but the Labour party’s manifesto sets out policies that would destroy inward investment and cost tens of thousands of jobs.
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Does the Secretary of State accept the Food and Drink Federation’s analysis that, with a complex and confusing no-deal tariff schedule, investment made right across the supply chain in preparing for a no-deal Brexit means that food prices will likely increase?
Chuka Umunna (Streatham) (LD)
The National Audit Office said yesterday that if the UK leaves the EU without a deal, cross-border shipments could be reduced by more than 50% and would take 12 months to return to normal. Can we stop this charade? Is it not the case that no responsible Government would do that to our businesses, and that if there is no agreement with the EU by Saturday, the Prime Minister will send the letter requesting an extension, not least because if he fails to do so he will be in contempt of court, given the proceedings in the Court of Session?
Graham Stuart
As well as birthday congratulations to the hon. Gentleman, I have other good news: we are taking steps to support businesses in all scenarios and to ensure that, with or without a deal, we minimise any negative disruption. But as my right hon. Friend the Secretary of State just said—this is an appeal to Members right across this House—we will have the opportunity to vote for a Saturday sitting, and we will have the opportunity, I hope, to see a deal put through that will mean that we can move forward. I hope that the hon. Gentleman, finally, will support and respect the decision of the British people in 2016.
International Trade
Graham Stuart Excerpts(5 years, 2 months ago)
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Graham Stuart
To put the FDI numbers into further context, UNCTAD’s figures show that FDI flows—flows not stocks; I hope the hon. Member for Sefton Central (Bill Esterson) knows the difference—fell by 19% globally in 2018. [Interruption.] I am now talking about flows as opposed to stocks, so it is repetition, but about a different aspect of something that I hope the hon. Gentleman would take an interest in. FDI flows fell by 19% globally and by 73% in continental Europe. What happened to FDI into the UK? The flows increased by 20%. So much for the negative effects of Brexit uncertainty.
[Official Report, 23 July 2019, Vol. 663, c. 519WH.]
Letter of correction from the Under-Secretary of State for International Trade, the hon. Member for Beverley and Holderness (Graham Stuart).
Errors have been identified in my response to the debate on the UK Trade and Investment Strategy.
The correct statement should have been:
Graham Stuart
To put the FDI numbers into further context, UNCTAD’s figures show that FDI flows—flows not stocks; I hope the hon. Member for Sefton Central (Bill Esterson) knows the difference—fell by 13% globally in 2018. [Interruption.] I am now talking about flows as opposed to stocks, so it is repetition, but about a different aspect of something that I hope the hon. Gentleman would take an interest in. FDI flows fell by 13% globally and by 55% in continental Europe. What happened to FDI into the UK? The flows fell at a slower rate than in Europe, at 36%. So much for the negative effects of Brexit uncertainty.
UK Trade and Investment Strategy
Graham Stuart Excerpts(5 years, 3 months ago)
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Peter Grant
I apologise, Mr Davies.
I say briefly to the hon. Member for Hornchurch and Upminster that the Scottish Government and previous Scottish Executives run by other parties have done that. One of the biggest obstacles is that every time the Scottish Government try to promote Scotland abroad or the Welsh Government try to promote Wales abroad, the UK Foreign Office says, “Hold on a minute. That’s our job.” Look at the snide comments every time a Minister of the Crown from the Scottish Government goes overseas to promote Scotland.
The negative, patronising, sneering attitude—not from the hon. Lady—that the national Governments of the United Kingdom all too often experience from the UK Government must finish. The United Kingdom Government have a job to do in selling the United Kingdom abroad, and the national Governments have a job to do in selling their respective nations abroad. That does not mean that they have to get in each other’s way or fight with each other about it. It is disappointing when attempts by the devolved nations to market themselves abroad are undermined by the UK Government, simply because, as a matter of democratic reality, the Scottish Government and the Welsh Governments have different views and a different political life from the UK Government. That is what devolution is for.
I realise that I have taken more interventions than I would normally in such a short speech—
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Will the hon. Gentleman give way?
Peter Grant
Before I let the Minister intervene, I ask him to confirm that the United Kingdom Government recognise that although the United Kingdom has a trade deficit with the European Union, Scotland has a trade surplus with it. Anything that damages or even temporarily interrupts Scotland’s successful trading relationship with the European Union will be deeply damaging to the Scottish economy and therefore to the United Kingdom economy.
Graham Stuart
I am disturbed to hear about this pattern of behaviour whereby the UK Government are allegedly inhibiting the Scottish Government’s promoting Scotland. We perhaps do not have time to discuss that right now, but I would be delighted if the hon. Gentleman wrote to me setting out instances of that. I promise to investigate them fully. I have never heard such allegations before, and I would be interested to hear about them and investigate them, if he can provide them.
Peter Grant
There was a recent case in which the Foreign and Commonwealth Office refused to support visits abroad by the First Minister of Scotland. That refusal was welcomed by the Scottish Conservative party.
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) on securing the debate and on her excellent opening to it. The subject, as we heard in many excellent and some peculiar contributions, is an interesting one. Our success in trade and investment will be crucial to delivering a more prosperous, stable and secure future for the country as we leave the EU.
There has been a massive change in the importance of trade and investment in the global economy and in the UK economy. That is one of the things to be grasped. In 1990, exports constituted a little more than 20% of GDP, but now they are more than 30%. We have the aspiration of reaching 35%, making us one of the greatest exporting nations in the G7. If we look at foreign direct investment, the stock value of that represented as a percentage of GDP was a little over 20% in 1990. Now it is more than 66%. As we have just heard from the Opposition spokesman, it is worth noting that, as we neared the end of the last Labour Government, France came up nearly to meet the level of foreign direct investment stock held in this United Kingdom; whereas, I am pleased to say, on last year’s figures from the United Nations Conference on Trade and Development, the UK’s stock of foreign direct investment—with the hundreds of thousands of jobs that result from it in the United Kingdom—is now greater than that of France and Germany combined. That may be one element in explaining how we have gone from a youth unemployment rate that was 45% up by the time the Labour Government left office to one that is now at the lowest level since records began.
While we talk about trade and investment we must remember what it is all about, which is the quality of life—the living standards, prosperity and security—of this nation. That is why this Government and Conservative Prime Ministers since 2010 have had such priorities. The numbers are there. People can give all the speeches they like, but if we follow the numbers, we will see the transformation that has been brought about. That is reflected in outcomes—the reduction in unemployment and increases in employment.
Bill Esterson
I am glad that the Minister mentioned numbers and outcomes. Let us look at some. Jobs saved through investment fell, from 2016 when they were 28,000, to just 6,000 in 2019. That is an 80% fall. Those are numbers. They are not exactly encouraging, are they? They are not exactly a sign of the Government’s success. Meanwhile, 13% of Asian investors have reduced their investment and 14% have put activity on hold, and there are similar figures for north America—slightly lower for western Europe. How is that a record of success on the numbers?
Graham Stuart
I am grateful to the shadow Minister for that intervention. The danger is in selectively seeking those things. On every possible measure, we see the UK—[Interruption.] I hope the hon. Gentleman will stop barracking; he knows what is coming. Even though he pretends not to, he must have seen the UNCTAD numbers—the official UN numbers—for 2018. What did they show? They showed that in 2018, according to the UN, the global stock of foreign direct investment—the yearly amount of total flows—fell.
Graham Stuart
The overall stock fell. The hon. Gentleman is talking about flows; he should try and get to grips with this. Maybe this will be a useful seminar for him to do so.
If the hon. Gentleman looks at the stock line for Europe, which is the accumulated level—not at the flow line, as flows go up and down year by year and are essentially volatile; they always have been and I project they always will be—he will find that it fell in Europe too. The net amount fell; there was net disinvestment in Europe and in the world. What happened in the UK? It went up again, but not quite as quickly as it did before. It is the global context. By every possible measure—flow, stock, greenfield, mergers and acquisitions—we lead Europe.
We have strengthened our position in Europe. Why has that happened? It is because of the business-friendly policies that we have put in place. As the shadow Minister is feeling so aggressive, I put it to him: in what possible parallel universe in which there is increasing competition for mobile global investment, with the massive number of jobs and the prosperity that brings, would jacking up corporation tax rates lead to more jobs, more opportunities and more prosperity for people in this country? That is the trade and investment strategy of Labour.
We do not need to think just about what Labour’s current policies will do; we can look back at every previous Labour Government. By the end of the 2000s, France was just about overtaking the UK; now we have more than twice as much as France. Just think of the hundreds and hundreds of thousands of jobs—I am most interested in that number. While the hon. Gentleman and his party play politics, we deliver the investments that lead to prosperity and jobs. If he is interested in going further into the subject, he should look at Ernst & Young and the pattern over the last few years. What have we seen? We have seen an increase in investments outside London and the south-east, and an increase in the share of the FDI going into manufacturing, which has been maintained and strengthened in this country.
That is the exact opposite of the picture that the hon. Gentleman tried to lay out. It is there in every figure—from the OECD, UNCTAD, the Economist Intelligence Unit, Deloitte and fDi Markets. That is a fascinating one. Some people say, “If you include mergers and acquisitions, and you include intra-company transfers, that is not real FDI. We should look at greenfield and new start-ups, not someone buying a factory. What difference does that make? What about creating a new one? Let’s look at that.” Who looks at that? That would be fDi Markets. What did it show last year? From memory, it showed that the UK got 1,268 projects, that France temporarily overtook Germany, with 580 projects—well done President Macron, who has put a lot of work into that—and that Germany had 560 projects. In other words, despite Brexit uncertainty, in 2018 the UK had more greenfield investment projects than Germany and France combined. On what basis would anyone other than the most devout and misguided socialist try to suggest that those figures are not good?
Jack Brereton
Does my hon. Friend agree that the manufacturing figures referred to demonstrate exactly the picture of this Government and show the investment in exports that is going on? In the Blair and Brown years we saw a dramatic decline, with factories in manufacturing industries closing up and down the country. Under the Conservatives, we have seen a massive growth in manufacturing industries, clearly in part because of the exporting success and the support for exporting in this country.
Graham Stuart
My hon. Friend is a particular champion of industries in his area, not least ceramics in Stoke. I thank him for speaking in my constituency last Friday and talking about the success that has come from the effort put into that local economy to help to turn it around and strengthen it.
Since 2010, we have been working to turn around the toxic economy legacy bequeathed by the last Labour Government and to support the pioneering, innovative, entrepreneurial brilliance of British business once again. Success has come from policies designed to promote the dynamism, openness and flexibility of our economy. A further important step was taken by the Prime Minister when she established a dedicated trade Department for the first time in British political history. The Department for International Trade has just celebrated its third birthday and is crucial to the delivery of trade and investment success.
Given that this could be a valedictory performance by me, as we get a new Prime Minister later, I pay tribute to the Secretary of State for International Trade and President of the Board of Trade, my right hon. Friend the Member for North Somerset (Dr Fox), for the brilliant work he has done leading and establishing this Department of State. Its work will become even more vital after we leave the European Union. We must build a global, outward-looking Britain that is a dynamic and independent champion of free, fair, rules-based international trade.
Our trade and investment strategy seeks three basic things: higher exports, greater foreign and outward investment, and reduced trade barriers. Contrary to what we have heard, exports are booming. Total UK exports now stand at a record high of £647 billion, bearing out exactly what my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) just said. They are up in real terms—[Interruption.] Maybe the shadow Minister only looks at numbers that suit his narrative? They are up 25% in real terms.
In 2017-18 alone, the Department for International Trade helped UK businesses to export goods and services worth around £30.5 billion, which is a year-on-year increase of 4%. We are proud of our work in encouraging more companies to export, as my hon. Friend the Member for Hornchurch and Upminster said in her excellent opening speech. A lot of the difficulty is in overcoming the timidity and the concerns that companies have in exporting. Nearly 111,000 firms exported goods in the first quarter of 2019, which is 5,000 more than in the same period last year.
I have talked about the foreign direct investment numbers, but the latest figures from UNCTAD show that the UK hit a record high of almost £1.5 trillion in FDI stock by the end of last year, which is more than Germany and France combined, creating 76,000 new jobs and safeguarding 15,000 more. That was in one year and in marked contrast to 2010, when France was close to overtaking us.
To put the FDI numbers into further context, UNCTAD’s figures show that FDI flows—flows not stocks; I hope the hon. Member for Sefton Central (Bill Esterson) knows the difference—fell by 19% globally in 2018. [Interruption.] I am now talking about flows as opposed to stocks, so it is repetition, but about a different aspect of something that I hope the hon. Gentleman would take an interest in. FDI flows fell by 19% globally and by 73% in continental Europe. What happened to FDI into the UK? The flows increased by 20%. So much for the negative effects of Brexit uncertainty.[Official Report, 3 September 2019, Vol. 664, c. 2MC.]
The pace of change in the global economy is increasing but, for the agile, opportunities abound. The Department for International Trade provides the platform to give the UK a unique trade advantage, by locating export promotion, trade finance, trade remedies, export licensing and international negotiations all in a single Government Department.
I want to respond to some points made by my hon. Friend the Member for Hornchurch and Upminster. She asked about the 100 days. We will continue to prepare for no deal to be the outcome, which is not the avowed intent of either of the leadership contenders for the Conservative party. We prepared and were in a good position ahead of 29 March, and we are working with the Department for Business, Energy and Industrial Strategy to be able to meet questions coming in from businesses. We are ready to meet any surge in demand at that level.
My hon. Friend asked about state-level engagement with the US. The Secretary of State and I met with Senators from Florida and Texas the other day. As we expand and strengthen the Department’s reach, we recognise that it is not all about working at the national and federal level, whether in the US or elsewhere, such as in Brazil. I was pleased to meet the Governor of São Paulo, which itself has more than 30% of the GDP of Brazil. There is a lot more to be done at that more granular level in order to identify barriers and overcome them.
My hon. Friend made an interesting point about language. Given our national weaknesses on foreign languages, I hope that officials may be able to follow up on that point. She also touched on the DIT working more closely with the FCO and DFID. We are absolutely trying to do that. I am delighted that we are becoming an official development assistance Department. We have to bring trade and development together. That is how people get out of poverty. This involves so many countries. There is now the Ghana Beyond Aid initiative; I visited Ghana’s investment conference in London last year. These countries do not want to be seen primarily as aid recipients. They want to be seen as countries with great entrepreneurs, great technology and great capability. That is why, after the Prime Minister’s speech last year in Cape Town, I am helping to organise the Africa investment summit on 20 January 2020. It is precisely to ensure that, cross-Government, we are able to support increased investment in Africa and take advantage of the opportunities there.
My hon. Friend touched on the subject of regulators. Whether further changes are required in their missions as defined by Government is something that I will leave for others to wrestle with, but I can say that our regulators really are stepping up to the mark. The Financial Conduct Authority, with whose representatives I have met, is making a major difference. People can look at our FinTech bridges. We lead the world on FinTech—financial technology. It is enormously valuable, and we are creating FinTech bridges with a number of other countries. For instance, we are deepening our engagement with Hong Kong and Australia. In both cases, the FCA has been a fundamental part of the team as we try to ensure that start-ups there can more easily come to the UK, and vice versa. It is precisely that kind of opening up of markets that is so important.
I am not sure that I have ever given a speech from my iPad before. When the screen goes blank—
Graham Stuart
It is better to have your screen go blank than your mind go blank, as may have happened to the hon. Gentleman when he started to talk about FDI, on which we are doing so well.
Last year we launched a new export strategy to encourage, inform, connect and finance businesses of all sizes, with the goal of increasing our exports from 30% to 35% of GDP, which would move us to the top of the G7. We are committed to working with the devolved Administrations in doing that. I will follow up on any suggestions. I hope that, if there are problems, we can immediately sort them out. It is certainly not this Government’s policy in any way to inhibit the effectiveness of the devolved Administrations in trying to promote business in their areas. We work together hand in glove. I remember that at MIPIM, the world’s largest property conference, last year, I launched the Scottish capital investment portfolio. We worked closely together on doing so, and we can do so again. That is very important, particularly in the Scottish context, because, if my numbers are still correct, exports as a percentage of GDP in Scotland are only around 20%, whereas for the United Kingdom as a whole the figure is 30%. That shows the importance of helping the Scottish Government to do a better job in promoting Scottish exports, because there is huge capacity there.
I am proud of what we have done with UK Export Finance. We have doubled its appetite since 2010 and we have revolutionised its performance as a world-leading export credit agency. It now has a capacity of £50 billion and its offer has been extended; it is now available in 62 international currencies, so when support is provided, that can be done in the local currency, thereby reducing risk. That has helped too. We have run it at no cost to the taxpayer, lowered its cost ratio since 2010 and ensured that no UK export fails for lack of finance or insurance. Earlier this year we went further. Now, companies that are not exporters themselves but are part of the supply chain of companies that do export can access UKEF finance too.
We have convened the Board of Trade for the first time in 150 years to promote a culture of exporting and investing, spreading the benefits and prosperity of international trade to every corner of our United Kingdom. Whether I have been in Stirling or Belfast with the Board of Trade, I have been delighted to see the local response and people’s enthusiasm for what we are doing at the DIT to promote trade from those areas.
Time has passed, and you would probably like me to bring my remarks to a close, Mr Davies. If I may, I shall continue just briefly. We have created an overseas network of Her Majesty’s trade commissioners, the most recent one being for Australasia. There are 10 of them and they have been selected for their expertise in particular markets. They are building our regional export plans and working to secure market access across the globe.
Whether it is on promoting exports with our export strategy or promoting foreign direct investment—for which we remain the No. 1 destination in Europe, well ahead of our competitors; in fact, we are third in the world, behind only the United States and China/Hong Kong—we are determined to go further. And of course in the area of trade policy, there is not only the issue of free trade agreements; my hon. Friend the Member for Hornchurch and Upminster was right to say that we should not fetishise them. As our second permanent secretary and chief negotiator has noted, for every one person working on FTAs, we want three or four working on market access.
Therefore, whether it involves opening up Taiwan’s pork market, cosmetics in China or lowering duties on Scotch whisky going into Latin American countries, we are, across the piece, upping our game. Having a dedicated trade Department—this might be my last speech while a member of it—was a significant and important step forward, particularly given the growing importance of trade and investment to the prosperity of this country and the world. The Department—with or without me—will continue to be an advocate for an open, rules-based, liberal trading system. It will continue to work to reverse the negative impacts on manufacturing and so much of our other trade and investment performance that happened inevitably—it happened in almost all cases—under the last Labour Government. We must ensure that Labour never comes into government again, and that this Government can go out there and continue to strengthen the DIT and strengthen our prosperity in the world. I thank my hon. Friend the Member for Hornchurch and Upminster very much for securing the debate today.
Oral Answers to Questions
Graham Stuart Excerpts(5 years, 3 months ago)
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Chris Elmore (Ogmore) (Lab)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Promoting renewables is, of course, one more function of a dedicated trade Department, and we have export campaigns targeting renewable energy opportunities across Europe, Latin America and south-east Asia, along with support programmes. For example, the offshore wind sector deal commits the Department for International Trade and industry to increase offshore wind exports fivefold to £2.6 billion by 2030 and puts in place support mechanisms to help UK suppliers grow.
Chris Elmore
I thank the Minister for his answer. In Wales, the low-carbon and renewable energy economy employs nearly 10,000 people. However, as he has already said, this could be hugely expanded if there were more opportunities to explore and to export renewable energy, so what steps are the UK Government taking to boost the economy and export more to provide more jobs across Wales and the wider UK?
Graham Stuart
I congratulate the hon. Gentleman on championing those employers and, more importantly, employees in his constituency across the world. We are absolutely dedicated to doing that. As I said, the offshore wind sector deal puts a lot of that in place. UK Export Finance now has a dedicated team to support renewables. Colleagues from across the Department worked with Taiwan, and I was there last year at the signing of a memorandum of understanding that opens up its offshore wind opportunities for local companies.
Bill Esterson (Sefton Central) (Lab)
The Society of Maritime Industries says that export finance support in the UK lags behind what is available in other countries. It is calling for a much-needed follow-up detailing the specifics of the export strategy. If the Government are serious about the UK being a zero-carbon economy, where is the detail, the coherent plan and the investment into exports of our world-leading renewables sector? Labour believes in the industry; when will the Government start to?
Graham Stuart
I shall try to give a straight answer to a not entirely straight question. As I said, we have the sector deal. We have the export strategy and we are putting enormous effort into that. I am pleased to say, Mr Speaker, that in this 100th centenary year of UK Export Finance, it has, under this dedicated trade Department, been rated the best export credit agency in the world.
Mr Speaker
It is good to know that a centenary year marks 100 years and that 100 years would be considered to constitute a centenary. I wonder whether a 100th centenary year might be in danger of being a tautology.
Oral Answers to Questions
Graham Stuart Excerpts(5 years, 5 months ago)
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Mr William Wragg (Hazel Grove) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
Few do more than my hon. Friend to promote UK education. Since the strategy launch in March, we have established a cross-Government implementation group to turn the strategy’s ambitions into reality, including raising exports to £35 billion by 2030 and lifting student numbers coming here to 600,000. We will appoint an international education champion, and I will chair the education sector advisory group later this month as we build on our plans to deliver the strategy in partnership with the sector.
Mr Wragg
I am very glad that my hon. Friend will be very busy on that project in the coming weeks. What steps are being taken by his Department to ensure that UK institutions, such as the excellent universities in Manchester, can promote their strong educational brands as world-class centres of teaching and research?
Graham Stuart
My hon. Friend is right: the UK education sector is world leading. It has four of the top 10 universities in the world and 18 of the top 100. Institutions such as the universities in Manchester stand out for their multicultural campuses and international collaborations, driving global research into important areas such as childhood leukaemia. We plan to work with them and others in the sector to promote it across the world.
Sir Henry Bellingham (North West Norfolk) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
On almost every measure, the UK has strengthened its position as the most attractive investment destination in Europe since the EU referendum. According to “The fDi Report 2019”, published last month on 3 May, last year saw in-year greenfield investment in the UK grow by 19% to 1,278 projects—more, notably, than France and Germany combined. Despite the slowdown in the world economy, the latest figures show that the total stock of FDI in the UK reached a new high of £1.5 trillion, more than Germany, Poland and Spain combined.
Sir Henry Bellingham
I thank the Minister for that extremely positive and encouraging reply. Is he aware that much of King’s Lynn and west Norfolk’s economy is based on foreign direct investment from a number of firms from America and Europe and that we have some subsidiaries of truly world-class companies? What is his Department doing to liaise with those firms and learn the lessons about why they made that successful decision to come to the UK and Norfolk, in particular?
Graham Stuart
We have a supplier relationship management programme, where we have built relationships at ministerial and senior official level with the largest investors into the UK. It is notable that in 2017-18, the 2,072 FDI projects that landed in the UK created 75,968 new jobs. Investors are not put off by Brexit, but they are deterred by the threat of nationalisation by the Labour party. It is the fear that job creators most often express to me, which goes to show that Labour does not even need to be in power to damage British jobs and living standards. The threat of Labour is enough.
Geraint Davies (Swansea West) (Lab/Co-op)
My father, David Thomas Morgan Davies, was head of economic development at the Welsh Office and got Ford to move to Bridgend in the ’70s, yet this week we find that it is announcing its closure at a time when Donald Trump is saying that we are going to have a great trade deal. Does the Minister agree that the people working in Ford who voted in good faith to leave the EU did not vote to leave their jobs and deserve a say on the final deal, so that they can think again and stay in the EU instead of losing their jobs and being decimated by the Americans?
Graham Stuart
The hon. Gentleman again wants to frustrate the will of his constituents. The automotive industry is in massive global flux, and trying to link every decision to Brexit leads people astray, just as he and so many of his colleagues do as they come up with these false arguments for a second referendum. The people want the thing they decided to be done and they do not want to hear weasel words from the Labour party, trying to say the opposite.
Jeremy Lefroy (Stafford) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
The export strategy sets out how the Government will encourage, inform, connect and finance UK businesses so that they can take advantage of the international demand for British goods and services. In February we launched the new export champion community, a network of the UK’s leading exporters which will encourage their fellow firms to start exporting and will offer practical advice.
Jeremy Lefroy
I am thinking very much of the workers at Ford this morning, because my first job was as a foreman at Ford in Bridgend. I hope that a way through can be found.
When it comes to informing and connecting, the Department needs people on the ground, but its budget in Africa, where I am one of the trade envoys, is very small. It has excellent people, but not nearly enough of them. What is the Minister doing to persuade the Treasury to invest more in “feet on the ground” for our trade missions in Africa and across the world?
Graham Stuart
One of this Administration’s successes is the establishment of the Department for International Trade. For the first time, we have a dedicated, focused international economic Department that seeks to build our global prosperity. Africa, which is expected to double its GDP between 2015 and 2030 and whose population will nearly double in the not too distant future, is an area in which we need to up our engagement. That is why we are organising an African uplift this year, and we will continue to do more.
Stewart Hosie (Dundee East) (SNP)
Implementing the export strategy also requires us to implement the cyber-security export strategy, which relies heavily on UK Export Finance for direct lending, export refinancing and so on. If cyber-security exports are a genuine strategic priority, what proportion of UK export financing will be committed to its support?
Graham Stuart
UK Export Finance responds to the market. It is there to ensure that no viable British export fails for lack of finance. Therefore, predicting, let alone fixing, the percentage that will be put into any particular sector—even if it is a strategic priority for the Government —would, I think, be a mistake.
Craig Tracey (North Warwickshire) (Con)
Mr William Wragg (Hazel Grove) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I am delighted to answer that question again. Our team in the north-west works with international trade advisers and partners across Greater Manchester to enable local exporters to showcase their products and services overseas, including through bespoke trade missions, events and the DIT digital platform. I welcome my hon. Friend’s invitation. We have an established export hub that travels the length and breadth of the UK to give face-to-face support and guidance to first-time exporters. I will ask our team to contact my hon. Friend’s office to explore areas of collaboration and I encourage colleagues from across the House to invite the export hub to their area.
Mr Stephen Hepburn (Jarrow) (Lab)
John Grogan (Keighley) (Lab)
Graham Stuart
I am grateful to my hon. Friend from Yorkshire who is right to highlight the outstanding contribution from the team in Barnsley. I will leave it to other Departments and Ministers to reply on whether or not a Yorkshire mayor would be the right thing to have, but what I can say is that we will continue to work together cross-party to promote business and employment across the Humber and Yorkshire region.
Tom Pursglove (Corby) (Con)
For the benefit of my constituents in Corby and east Northamptonshire will the Secretary of State take the opportunity to knock on the head this nonsense that the NHS will be up for sale in any future free trade agreement?
International Education Strategy
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
It is a pleasure to take part in this debate. We have had well-informed contributions from across the House. I thank the hon. Member for West Bromwich West (Mr Bailey) for raising this important topic. When he chaired the Business, Innovation and Skills Committee and dealt with higher education, I chaired the Education Committee, and we worked in tandem.
As everyone has said, the UK has a wonderful education system. Despite its size, four of the world’s top 10 universities, and 18 out of the top 100, are here. We lead Europe in having the most highly rated universities. With early years, further education, our independent schools, our curriculum and syllabus providers, and so many assessment systems, we have a rich compost of educational provision in this country. It brings in £20 billion a year—significantly more than all sorts of large industries that we might think do a great deal more than education. It brings in real money, as has been said, and provides employment, often outside the areas we might expect. It provides well-paid jobs and opportunities in some of the more challenging parts of the UK, bringing expertise and people with certain skillsets to areas where they are most needed. It builds friendships around the world. As the investment Minister, I can say that it is extraordinary how often people choose to invest in this country because they or their family members have been educated here. That is an important part of our offer.
Ben Lake (Ceredigion) (PC)
We have heard about the benefits that international students bring to the UK, and about the reputational risk of malign visa arrangements, but it is important to reflect, as the Minister just mentioned, on the fact that the economic impact of international students ripples out far beyond the locations of the particular universities. We know about the effect of universities such as Aberystwyth in my constituency, but a 2017 report showed that, in Wales, the impact of international students alone sustained more than 1,600 jobs in regions where there is not a university. That is an important point to bear in mind when we look at immigration policy.
Graham Stuart
I am grateful for that contribution.
Most countries on Earth—some 160—use UK international qualifications in their national secondary exams. Thousands of international schools use the UK’s K12 curriculum, and almost 25,000 students attend more than 40 overseas UK schools. As I have said, the latest figures show that our exports are worth almost £20 billion. That includes transnational education, which has experienced the most meteoric rise in value, albeit from a lower base. Some 67% of the value of those exports comes from higher education, much of it in the form of international students—that has mostly dominated the debate this afternoon—of whom there were around 442,000 in 2016.
That is a great record. We punch above our weight, but I think that there is unanimity in the Chamber that we are not yet fulfilling our potential, considering the quality of what we have and the need around the world for that kind of quality and service. Frankly, that is why we have a refreshed international education strategy.
Perhaps because of my background, I find that education is one of the most interesting sectors that I deal with as a trade Minister. Education gives almost no negatives. It brings real money and builds links, and people who come here to study then form part of teams or found companies and innovate, when they might not otherwise have done so. We must be restless, forward looking and ambitious—as everyone in this Chamber has been—to ensure that the potential of emerging opportunities in the global economy are used to their fullest.
The rapid shifts in economic and demographic power across the global economy are creating opportunities in precisely the areas where the UK enjoys a competitive advantage. As my hon. Friend the Member for Henley (John Howell) knows well, last year the Prime Minister set out an ambition that we should seek to become the largest G7 investor in Africa. We need to work with countries, such as Nigeria, across Africa—I just met an economic Minister from Tunisia—to bring companies of all sorts into Africa, and what better than companies that work in education?
We look to deliver through the strategy in several ways. The strategy recognises that it is not Government who export, but our educational providers and institutions. That is why it is a sector-led strategy. I am grateful to all colleagues across the House, whatever their criticisms of elements of Government strategy, for supporting this strategy, which has been well supported and much crafted by the sector. The sector-led strategy was developed in co-operation with educators and looks to address the practical barriers that they face to exporting, and to find the right tools to overcome them.
Yesterday, I met Destination for Education, which is a coalition of pathway providers—people who help others come into our system—including INTO, Kaplan and Study Group. We discussed their future engagement with Government and, in particular, how we can co-operate on changes to the student visa process and respond effectively to competition from rival markets, which so many hon. Members have mentioned. That is about Government listening to the needs of providers and adapting our approach as we go. Several key organisations and individuals have been involved in achieving that new level of engagement and dialogue.
If I may—without being invidious to some—I highlight the work of Universities UK International, the UK skills partnership, English UK and, in particular, the British Council and its chief executive Sir Ciarán Devane, for their invaluable help in setting up engagement sessions to allow us to take on board the views of a broad range of education providers. Those providers have a wide range of skills and experience when it comes to exporting, and the strategy is about catering to these diverse needs.
Stephen Timms
Since the Minister has mentioned Universities UK, does he agree with my point that students who get their visas back after losing them because of a TOEIC cheating allegation should be helped by the universities to which they return, so they do not have to go back to square one and pay their fees all over again?
Graham Stuart
If a student finds themselves in that position, I hope and expect that the university would be supportive of their students. One of the strategy’s central aims is to ensure that we have a more welcoming offer. Sometimes there can be misconceptions and myths, but we need to recognise where we need to improve what we do, how we do it and the way that it is communicated. We recognise the need to do that in various markets if we are to meet the targets that we have set.
The strategy sets out to look at export data that we hold for education so that we have a more accurate basis on which to judge our success. At the strategy’s heart is an ambitious goal of achieving an increase in the value of our education exports to £35 billion per year, and to increase the number of international higher education students to 600,000 per year.
A lot of the focus of the debate has been on the visa issue. Although that is a Home Office issue rather than a trade Minister’s day job, at the heart of the strategy is a whole-of-Government approach, to put in place the practical, advisory and promotional support to strengthen the UK’s position at the forefront of global education, connect international partners, open markets and unlock new opportunities in rapidly growing areas such as education technology.
When I found that we had an education strategy that dated back to 2013 and was not on target, one of the first things I did was go and see the Secretary of State for Education. He came absolutely on board and was super supportive. I also reached out to Home Office colleagues; I do not know where the misunderstanding about the Home Office involvement in this strategy has come from, but it has really come forward and is an important part of the team. We are working together.
Colleagues will be aware that the Migration Advisory Committee made its recommendations, and the Government chose to go further than what MAC had suggested in terms of post-study provision. That is an indication of the Government’s commitment to getting that right. Matters are being kept under review, and if I were in Opposition, I might call that warm words, but it is much better than their not being under review.
We have our educational strategy; we are working as a team across Government; and we are committed to making sure that we get the whole package right so that we are as welcoming and competitive as we can be. The Home Office is fundamentally part of that, and is committed to keeping the immigration aspects of that package under review, in order to deliver in the appropriate way.
I probably have very little time left.
Graham Stuart
Thank you, Mr Hollobone. Just to nail the Home Office point, action 6 sets out clearly that the UK Government will enhance the education sector advisory group, and that it will be supported with a representative from the Home Office. I hope it is embedded in there pretty clearly.
On the Indian visa front, during the year ending 18 December 2018, study-related visas issued to Indian students increased by 35%. Although colleagues were right to highlight the drop, there is a significant increase, and we are working hard to get that message out. Ninety-six per cent. of Indian students who apply for a visa get one. I appeal to everyone to challenge what is not right, but not to overemphasise the negative in a way that leads people to think that we are not open when we are.
The hon. Member for Motherwell and Wishaw (Marion Fellows), speaking for the Scottish National party, mentioned four-year courses at Scottish universities being matched with inappropriate three-year visas. That situation is only in the event of no deal. As with so many of the points made by colleagues across the Chamber today, the obvious way to avoid the downsides that they have highlighted is to support the deal. The failure to support the deal, after standing on manifestos that in most cases promised to get us out of Europe, has contributed, so there is no point in shedding crocodile tears over a result driven by Members’ own voting decisions.
On ETS, there was clearly significant fraud. Twenty-five people involved in organising and facilitating language-test fraud have received criminal convictions, so there was a real issue.
Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) (No. 2) Regulations 2019
Graham Stuart Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I beg to move,
That the Committee has considered the Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019, No. 806).
It is a great pleasure to serve under your chairmanship, Mr Austin. I am pleased to be able to open this debate on the regulations, which were made in exercise of the powers conferred by section 8(1) of the European Union (Withdrawal) Act 2018. They correct errors in an earlier statutory instrument, the Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) Regulations 2019, which, as some hon. Members may recall, have already been debated and approved by both Houses. At the time, I acknowledged that the Joint Committee on Statutory Instruments had reported that instrument for defective drafting in three respects. I said then that we would correct those errors, and we are now doing so.
In addition, we are correcting an error concerning the removal of annex IV of the retained dual-use regulation. Annex IV establishes authorisation requirements for certain intra-Community transfers, and it was deleted because in a no-deal scenario the UK will not be party to intra-Community transfers. However, annex IV is referenced elsewhere in the dual-use regulation and so it needs to be retained in order for the regulation to function properly. We are therefore reinstating annex IV.
To conclude, the regulations do nothing more than to correct acknowledged errors in another instrument that both Houses have already approved. On that basis, I call on my fellow hon. Members to support the regulations, which I commend to the Committee.
Graham Stuart
I thank the hon. Lady for her response. We do not expect to make any changes to how we deal with exports. Every export is judged against the consolidated criteria. Ensuring respect for international humanitarian law, as she knows, lies at the heart of that. We will never approve of an export that is inconsistent with those criteria, which are always applied.
To reiterate my opening statement, we made some errors in the original regulations, and through these regulations we are correcting them. The instrument does nothing more than that. Given that the original regulations have already been debated and approved by both Houses, I ask Members to support these regulations, which I commend to the Committee.
Question put and agreed to.
Oral Answers to Questions
Graham Stuart Excerpts(5 years, 6 months ago)
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Vicky Ford (Chelmsford) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
GREAT is the Government’s most ambitious ever international marketing campaign. [Interruption.] It encourages the world to visit, study and do business in the UK. While Labour Members never lose an opportunity to talk this country down—as the hon. Member for Rhondda (Chris Bryant) has just done there—we use GREAT to sell Britain abroad. If the chuntering from the potential future Speaker could stop for one second, I will say that GREAT works across 144 countries, and for trade and investment in 2019-20, its priorities are the USA, Germany, China, Japan, Australia, India, Canada, France, Italy and Spain.
Vicky Ford
Britain’s universities are among our greatest organisations. Some are household names across the world, but some, like Anglia Ruskin University, which is based in Chelmsford as well as Cambridge, are less well known. How is the GREAT campaign supporting our education sector?
Graham Stuart
I am grateful to my hon. Friend for that question. I was at the all-party university group yesterday, meeting vice-chancellors and others, to discuss this issue. Just last month, we launched our new international education strategy. As part of that, we are encouraging bids to the GREAT challenge fund to showcase to even more countries the fantastic education offer this country has.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
According to an EY report, foreign direct investment has tended to move out of London into other parts of the United Kingdom, and there has been an increase in manufacturing activity. We are seeking to expand exports from all parts of the country, not least to India, and I am delighted to say that exports to India were up by nearly 20% in 2018. Only last night I attended the Grant Thornton tracker event with Mr Banerjee, the director general of the Confederation of Indian Industry, who is a great friend to this country and to our businesses up and down the land.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Graham Stuart
We will take every opportunity to support UK steel exports, and of course exports in general, which is why we produced our export strategy last year. With the help of Members such as my hon. Friend, we will champion local businesses and ensure that that message goes right around the world.
Ben Lake (Ceredigion) (PC)
The Canadian model offers a useful example of how the devolved Administrations should be involved in trade policy formulation. Does the Secretary of State agree that a substantive role in the strategic trade advisory group is essential for the meaningful involvement of the Welsh Government in UK trade policy?
Jeremy Lefroy (Stafford) (Con)
It is vital for us to encourage low-income countries to participate fairly in world trade, and for that they need inward investment. Will the Minister kindly advise us on what the UK is doing to promote investment into low-income countries so that they can participate fairly and reasonably in world trade, with world-class goods and services?
Graham Stuart
I thank my hon. Friend for championing lower-income countries around the world. We have made outward direct investment a priority. We are working with the Department for International Development to help developing countries to attract FDI. The Prime Minister has tasked us with making the UK Africa’s biggest G7 investor by 2022. Through our own investment promotion programme, DFID’s Invest Africa programme, and the Africa investment summit, which I am organising with DFID and the Foreign and Commonwealth Office, we aim to drive mutual prosperity, in Africa and beyond.
Exiting the European Union (Customs)
Graham Stuart Excerpts(5 years, 6 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I beg to move,
That the draft Trade in Torture etc. Goods (Amendment) (EU Exit) Regulations 2019, which were laid before this House on 15 March, be approved.
I am pleased to be able to open this debate on the regulations. These regulations amend provisions of regulation (EU) No. 2019/125 of 16 January 2019 concerning trade in certain goods that could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment.
The EU regulation divides these goods into three distinct categories. First, I will begin by explaining to the House that the regulation prohibits the import and export of goods that have no practical use other than capital punishment or torture. These goods include, among other things: gallows; guillotines; electric chairs; airtight vaults; electric shock devices intended to be worn on the body; cuffs for restraining human beings that are designed to be anchored to a wall; batons and shields with metal spikes; and whips with barbs, hooks and spikes. These are appalling instruments of torture, and the Government have a clear position that the trade in such goods from the United Kingdom is absolutely unacceptable. Their export and import are prohibited, and the only exception to this rule is if the items are to be displayed publicly in a museum.
Mr Jim Cunningham (Coventry South) (Lab)
What discussions has the Minister had with his EU counterparts, for example, about how we will enforce these regulations when we leave?
Graham Stuart
I thank the hon. Gentleman for that question. The aim of these regulations is to transpose the existing system, which is reliant on EU law, into purely UK law. However, he rightly identifies the issue of co-operation with other countries in the EU. We will have our own discrete regime. We have no intention of making changes to it. We will be looking to co-operate with our colleagues in the EU—and beyond—in making sure that these appalling goods are not trafficked around the world.
Secondly, the regulation imposes controls on the trade in specified goods that have legitimate uses—for example, in law enforcement—but that also carry a risk of being used for torture. These goods with potential torture application include oversized handcuffs, shackles, gang chains, spit hoods, electric shock dart guns and pepper sprays.
The third category involves those goods listed in annexe IV of the EU regulation. The annexe lists several short-acting and intermediate-acting barbiturate anaesthetic agents such as amobarbital, pentobarbital and secobarbital. These goods have a legitimate use in medicine, in research laboratories and in university chemistry departments, but they have also been approved for use—and, in some countries, actually used—either on their own or as part of a cocktail of drugs for execution by lethal injection. We will not help any country with capital punishment, and we will continue to lobby against and seek to influence countries that continue the practice, with a view to ending capital punishment. We do not license the export of these barbiturate products to countries that have not abolished the death penalty without an end-user assurance that they will not be used for capital punishment, and we will not do so after EU exit.
All of us will have the immediate reaction that it is terrible that the UK should ever be involved in the trade of any goods that could be used for capital punishment or torture. I am confident that we can all agree that the United Kingdom does not want to be a country that makes its living trading in such possible tools of torture. These goods have been controlled by European Union regulations for well over a decade, and the United Kingdom intends to carry on with those controls in a similar way. Let me reassure the House that exports from this country of such goods have been minimal over the past decade, averaging 10 licences per year, and we do not expect that to change. The types of goods exported under licence include handcuffs for prison service use and pepper sprays for use by the police in places such as the Crown dependencies, Australia and New Zealand. We have also licensed barbiturate anaesthetic agents for medicinal use and laboratory testing. The quantities are low, and the export value is small. We do not envisage any growth in exports of those goods after EU exit.
Let me be clear about the purpose of these amending regulations. In their absence, existing European Union law would not be effective in UK domestic law on the day we exit the European Union, and our ability to control these goods would be undermined. After EU exit, this legislation will enable the Secretary of State to control the export from the UK of the listed goods that could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment. As far as is possible, the legislation will operate as it does now, but controls on the goods will apply when they are exported from the UK rather than from the EU.
I do not believe that UK exporters want to be involved in a trade in torture goods, and I do not believe that these are the sorts of goods that UK businesses want to make, sell or export. Nevertheless, our export controls have an important part to play in promoting and ensuring global security, by controlling the goods that leave our shores. The Government have a responsibility to be prepared for any exit-day scenario, and we need to ensure that these controls continue to function properly. These exit-related regulations are just a part of the necessary legislative building blocks to ensure readiness on exit day.
The European Union (Withdrawal) Act 2018 enables a functioning statute book on exit day by providing Ministers with the tools to deal with deficiencies in domestic law arising as a result of our exit from the European Union. These regulations thus take another step towards completing the legislative part of controlling the export of strategic goods in preparation for a no-deal exit scenario. The Department for International Trade will continue to work to provide detailed advice and guidance about export controls and trade sanctions through EU exit and beyond. If these regulations are no longer required on exit day, we expect to revoke or amend them. Alternatively, commencement could be deferred to the end of an implementation period.
I want to take this opportunity to remind the House that these regulations are solely about preparing for European Union exit and ensuring that we have a functioning statute book in any scenario. These amendments must happen because of EU exit, but EU exit is not happening because of these amendments. Parliament needs to ensure that the existing controls remain in place. Negotiations about the future relationship between the United Kingdom and the European Union or the wider world are a separate matter. They play no part in this debate today. Broadly, all the provisions applying to exports from the EU customs territory today will instead apply to exports from the UK. For this reason, the Government have made every effort to provide certainty for businesses and the public wherever possible. There is no new marketing opportunity for the export of the tools of torture.
In August last year, we published a technical notice on export controls that explained our plans for post-EU exit export control licences. We will use our “Notices to Exporters”, which has 20,000 subscribers, to advise and communicate with UK businesses. We have also included EU exit advice in the export control training programme and at the annual export control symposium, as well as giving extensive advice to key sector trade associations.
I hope that the House will work in the interests of the nation to ensure the passage of this legislation, which is essential to ensuring we are prepared for EU exit and that we continue the ban on the trade in torture goods and the control over the trade in goods with the potential for torture application. I commend the motion to the House.
Graham Stuart
It has been a great pleasure to participate in this debate. We have heard powerful speeches, not least from the Opposition spokeswoman but also from the SNP spokesman and from my hon. Friends the Members for Tonbridge and Malling (Tom Tugendhat) and for Ochil and South Perthshire (Luke Graham).
Most of the questions came from the Opposition spokeswoman, as is appropriate. As for what happened with the process, the original draft regulations had to be withdrawn when the EU regulation was codified into a new version. Splitting the UK legislation was the most expedient way of dealing with the problem, and I really do appreciate the hon. Lady’s support for what we are trying to do tonight. We have no plans for further amendments, and I can confirm that the Government will maintain strong controls over the trade in goods usable for capital punishment or torture.
The hon. Lady asked about precedent from other states. When we leave the EU we will no longer receive information from other member states about licences that they have refused. We will, however, continue to take account of all relevant information that comes our way when assessing licence applications and—this goes to the heart of the question asked by the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) of the SNP—we would welcome the opportunity to continue co-operation with the EU, but that will be subject to whatever settlement we finally agree.
The hon. Member for Bradford South (Judith Cummins) asked about reporting and transparency. We will report annually. Right now, we publish more information than almost any other nation and we want that transparent approach to continue. Of course, the UK operates one of the most rigorous and transparent export licensing systems in the world, and all export licence applications are considered on a case-by-case basis against the consolidated EU and national arms export licensing criteria. We are not changing those. We publish quarterly and annual statistics on our export licensing decisions, including details of export licences granted and refused.
I have been asked about penalties. Breaches of regulation can lead to up to 10 years in prison. We plan to maintain the existing regime. We will also continue—this issue has also been raised—to be an active member of the global Alliance for Torture-free Trade after leaving the EU.
We have a responsibility to ensure the safety and security of our people. The regulations support that objective and I am grateful to colleagues from across the House for supporting them. I commend the regulations to the House.
Question put and agreed to.
Resolved,
That the draft Trade in Torture etc. Goods (Amendment) (EU Exit) Regulations 2019, which were laid before this House on 15 March, be approved.
Electricity
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Electricity Capacity (No. 1) Regulations 2019, which were laid before this House on 28 February, be approved.—(Amanda Milling.)
Question agreed to.
Draft Trade etc. in Dual-Use items and Firearms etc. (amendment) (EU Exit) Regulations 2019
Graham Stuart Excerpts(5 years, 7 months ago)
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The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)
I beg to move,
That the Committee has considered the draft Trade etc. in Dual-Use Items and Firearms etc. (Amendment) (EU Exit) Regulations 2019.
I am pleased to open this debate on the draft regulations; they may not have a very catchy title, but I assure the Committee that they do a very serious job. Without these amending regulations, existing European Union law would not be effective in UK domestic law on the day we exit the European Union. Addressing that issue has been a vital part of our long-term planning since the European Union (Withdrawal) Act 2018 received Royal Assent.
The draft regulations include amendments that will allow the UK to maintain the EU laws that control exports of dual-use items—items that have both civil and military uses. They will also control the export of civilian firearms of the type used by hunters and sports shooters. If we do not retain and amend the relevant legislation, we will no longer control the export of such potentially dangerous items. That would put the United Kingdom in breach of international agreements that require us to impose such controls, which prevent military equipment from falling into the hands of those who intend this country harm.
Exit-related legislation provides the necessary legislative building blocks to ensure our readiness as a nation on exit day. The 2018 Act provides the Government with the tools to deal with deficiencies in domestic law that would arise as a result of our exit from the European Union, so it is right and proper that we use it for matters such as export controls. By making the draft regulations and the associated Export Control (Amendment) (EU Exit) Regulations 2019, my Department will have completed much of the legislative part of controlling the export of strategic goods in preparation for a no-deal scenario. If the draft regulations are no longer required on exit day, we expect to revoke or amend them; alternatively, commencement could be deferred to the end of an implementation period.
Broadly, all the provisions that today apply to exports from the EU customs territory will instead apply to exports from the UK. However, our leaving the European Union will mean that the rules will have to change, and we cannot guarantee that all the export licensing requirements with which UK exporters are familiar will remain the same. The Government have therefore made every effort to provide certainty for businesses and the public, wherever possible. We have published a new general export licence that provides for the export of dual-use items to all European Union member states and the Channel Islands. In August, we published a technical notice on export controls, which explained our plans for post-EU exit export control licensing. We have also included EU exit advice in the export control training programme and at the annual export control symposium, as well as giving extensive advice to key sector trade associations.
Hon. Members should be aware that the Joint Committee on Statutory Instruments has reported the draft regulations
“on the grounds that they require elucidation in one respect and are defectively drafted in three respects.”
On the first point, we have provided the Joint Committee with an explanation of why the transfer of technology by electronic means to the Isle of Man is considered to be an export, whereas the physical movement of goods is not: it is a consequence of our customs arrangements with the Isle of Man and is consistent with our controls on military goods and technology. The other three points we acknowledge as drafting errors, which we will correct in the near future, but none of which will affect the proper functioning of the regulations.
I hope that the House will work in the interests of our nation to ensure the passage of this legislation, which is essential to ensuring that we are prepared for EU exit. I commend the draft regulations to the Committee.
Graham Stuart
I thank Opposition Members for their contributions. We have discussed the importance of maintaining robust strategic export controls, and a number of questions have come up. I thank the hon. Member for Bradford South for her forensic questioning, as the hon. Member for Wallasey rightly described it, on the important issue of maintaining effective controls after we have left the European Union, and will pick up on a few of the points that she raised.
Existing licences will still be valid; however, exporters from the UK who have a licence from the EU will need to seek new licences from the EU. The hon. Member for Bradford South rightly raised the impact on business. The export control joint unit has minimised additional administrative burdens for business by making available an open general export licence—OGEL—for exports to the EU. Exporters can register for one easily through our SPIRE online platform. Our assessment is that that will not have a significant impact on exporters.
Both hon. Members who spoke raised the question of future co-operation with the EU. The form of dialogue with the EU will be a matter for negotiations on our future economic partnership with the EU. We will continue to maintain robust controls on brokering. Transit is controlled under the Export Control (Amendment) Order 2018.
I have been clear that the Government remain committed to using the draft regulations to maintain the high-quality controls that we have discussed. We have a responsibility to ensure the safety and security of our people, and the legislation supports that objective. On that basis, I call on my fellow hon. Members to support the motion.
Question put and agreed to.