SMEs (Middle East and North Africa)

Debate between Jim Shannon and Daniel Kawczynski

Wednesday 19th June 2013 Westminster Hall

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

It is a pleasure to serve under your chairmanship, Mr Owen.

The United Kingdom is the sixth largest economy in the world, yet we are, I believe, only the 12th largest exporter. Many colleagues will know about my passion for British exports. Having come from an exports background, I take a strong interest not only in exports but in the region we are discussing, namely the middle east and north Africa.

I have spent the past eight months undertaking a report into UK Trade & Investment—UKTI—and into how it interacts with small and medium-sized British companies in assisting them to export to the middle east and north Africa. Of great interest to me is that we have interacted with more than 220 such companies, which have come from all over the United Kingdom into the House of Commons to give evidence in a very positive and enthusiastic way, about their experiences of UKTI. Small and medium-sized enterprises—SMEs—are keen to improve the service they get from UKTI, and I pay tribute to all their work in helping me to write my report, which will be published in seven to 10 days’ time. I will give a copy of the report to the Minister, for his consideration.

I would like to put on record my thanks to Mr Nick Baird, UKTI’s chief executive, who has been extraordinarily patient with me over the past eight months. I sometimes think he must stick pins into a voodoo doll of me in his office, because of the number of issues that I constantly raise with him. Extraordinarily, I have had to take a lot of the companies that I have interviewed to meet with him directly—and he will testify to that—because they simply have not had the traction that they expect and deserve from interacting with UKTI on the ground in their various regions. I am delighted to help them by taking them to meet Mr Baird, but that should not be for a Member of Parliament to do; they should automatically get the traction and support on the ground that they so rightly deserve.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman shows genuine zeal, and I congratulate him on his great interest in and passion for the issue. The agri-food industry in Northern Ireland is worth some £4 billion to the economy. Most of that comes from sales in Northern Ireland and the United Kingdom, and just some of it from sales overseas. Does he feel that the time has come for a UK-wide promotion of all the regions together, for the agri-food industry to market itself and get those markets in the middle east and north Africa? There is clearly the potential there to do even more for the economies back home.

[Daniel Kawczynski]

I very much concur with the hon. Gentleman. He will know that British agricultural products are among the best in the world. The British brand is extremely strong in the middle east and north Africa—they are crying out for dairy, beef and other products—and there should be a concerted approach, promoting the best of British of agricultural products in the region.

UK Trade & Investment

Debate between Jim Shannon and Daniel Kawczynski

Tuesday 19th March 2013 Westminster Hall

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

There is nothing more important than exports. The House constantly debates and argues over how to slice the cake—there are huge areas of difference between Opposition and Government Members—to provide for all the public services that we want to support, yet exports are about increasing revenue as a whole for the country and making that cake bigger. I am extremely disappointed that no Labour Back Benchers are present for the debate, but that is typical of debates on exports. They also table few written questions on this critical subject, so they clearly are not interested in engaging with it. I hope that the shadow Minister, the hon. Member for Wrexham (Ian Lucas), will take a message to his parliamentary party about the importance of engaging in such debates so that we can work constructively together, across parties, on this critical issue.

My office and I have spent the previous few months interviewing people from hundreds of SMEs from all over the UK, who have come to the House of Commons to give us their experiences—good and bad—of UKTI. We presented our preliminary results at a meeting with the Prime Minister and the Chancellor of the Exchequer. I have repeatedly lobbied the Chancellor on the issue, and I very much hope that some movement, or some additional support for UKTI, will be spoken about on Wednesday.

During my interviews, I have got to know Mr Nick Baird, the chief executive of UKTI, who I think is doing a very good job, and I want to put on record my thanks to him for his professional leadership of the organisation. I am, however, disappointed that a number of companies that I have met have failed to get the support that they require from UKTI, so I have started to take them to Mr Baird to allow him to engage directly with them and provide support. Some of the companies are talking about hundreds of millions of pounds of investment into the United Kingdom, so that is very important.

I shall mention briefly, as I have to be very brief, three key recommendations that I would like the Minister to take on board, with which, by the way, Mr Baird agrees. The first is about the structure of UKTI. At the moment, personnel report into different Departments, including the Foreign and Commonwealth Office and the Department for Business, Innovation and Skills, and sometimes to local ambassadors. What we want in the United Kingdom is one organisation that is fit for purpose, with reporting taking place directly to UKTI’s board and its chief executive. We want an organisation that can hire, fire and reward on the grounds of performance and on a commercial basis. We want to encourage people in UKTI to go the extra mile and strive to do everything possible to help British businesses to export. Regrettably, the support is rather patchy; in some parts of the world it is superb, but in others it is poor. We therefore want a common theme across the world and a common reporting structure.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Daniel Kawczynski]

No, I will not. I am sorry, but I do not have time.

My second point is about funding. Only 0.005% of Government spend goes to UKTI, and I am concerned that we will fall behind Scottish Development International, for example. That body receives far more pro rata, given the number of companies in Scotland, so it is able better to support its companies.

There is only a 49% awareness of UKTI among SMEs, and it is important that the body gets more funding from the Chancellor so that the message about what it can do for those companies throughout the world is better understood. My hon. Friend the Member for Enfield North (Nick de Bois) made the superb point that for every £1 spent, UKTI generates £22 of revenue. If I was the Chancellor of the Exchequer, my No. 1 priority would be to give UKTI more money.

My third point is that we need greater parliamentary scrutiny of UKTI. I am having to condense a 25-minute speech into five minutes, and this is only the second debate that has been held on UKTI in the past 12 months. This is a ridiculous way of scrutinising one of our country’s most important bodies. I want ongoing parliamentary scrutiny, and even—dare I say it—a Select Committee that can interact with Ministers and the UKTI chief executive on a daily, weekly, monthly and yearly basis, and hold them to account about specific countries and projects so that we are always scrutinising how taxpayers’ money is spent. When that parliamentary scrutiny takes place, we will be able to say to the Chancellor of the Exchequer, “Look at what UKTI is doing. Look how things are improving. Give it more money,” and I cannot overemphasise the importance of that. I desperately want to work with colleagues to convince the Chancellor and the Prime Minister to give us a Select Committee of the House of Commons to allow those of us who are passionate about exports to work together constructively to hold UKTI to account.

Some 45 UKTI staff work in Brazil, but 52 opportunities are listed on the website. The website is not properly maintained, and no opportunities are listed for a huge number of countries. We might not be surprised that that is the case for some obscure, small countries, such as Cape Verde and Mauritania, but there are many larger countries that have no opportunities listed against them. If we are going to have a website and to communicate with SMEs up and down the country, we need always to be harvesting opportunities across the world and putting them on that site. We must ensure that information is disseminated daily to all nine regions in England, and that those regions then interact with their SMEs to find out which can best be tailored to each opportunity.

Whenever I have travelled abroad, I have noted that the most important thing to remember, as my hon. Friend the Member for Enfield North mentioned, is branding. The British brand is the gold standard. It is the best in the world, so many people across the middle east, and in the rest of the world, yearn to buy British. Give us an opportunity here in the Commons to scrutinise UKTI on an ongoing basis, and give us a Select Committee.

UK Trade and Investment

Debate between Jim Shannon and Daniel Kawczynski

Tuesday 22nd January 2013 Commons Chamber

[Daniel Kawczynski]

I am very pleased for my hon. Friend and wish the company every success in exporting tea to China.

UKTI should appreciate these debates. I am proud of its achievements, but of course we should always scrutinise it to see if it can do more. This country became one of the greatest countries in the world through its ability to trade. We are not exporting as much as I would like, which is why it is so important to have these debates, and I am pleased that my hon. Friend has had a positive experience.

I do not want salaries to be just mediocre or okay for UKTI staff—many do a very good job. I want them to be the best, because I want UKTI to recruit the best. I want them to have greater incentives and bonuses to push for trade. My understanding—the Minister may correct me if I am wrong—is that UKTI staff are monitored as a whole, rather than as individuals. It is extremely important that we start to monitor individual performance. When I was in exports, if I did not hit my one-month target there would be problems; if I did not hit the two-month target, there would be serious problems; if I did not hit the three-month target, I would be out of a job. We have that pressure in the private sector, and it focuses the mind on delivering what is expected. I hope we can bring that private sector focus to UKTI.

I mentioned co-ordination across the country. I am the chair of two all-party groups: for Saudi Arabia and for Libya. Not once have I ever been contacted, in seven years, by anybody in UKTI about all of my delegations to Saudi Arabia and Libya—not on a proactive basis anyway. We, as parliamentarians, do an important job when we go to such countries. We meet important officials and leaders, so it is important for UKTI to understand all-party groups. Some are very active and UKTI should be engaging with us to find out what we are doing and try to have a common approach.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman see that it is the export not just of UK products, but of skills that help to increase business in Libya and the other countries in the middle east to which he has referred?

[Daniel Kawczynski]

I spent the afternoon with His Excellency Mustafa Abdul-Jalil, the former Libyan Prime Minister, who, with his counterparts, bravely brought about the revolution. He said the very same thing to me: that they are desperate for British skills, not just exported goods. They desperately need our experts in the fields of banking, commerce, education and health care. I agree with the hon. Gentleman.

The Prime Minister has started to appoint trade ambassadors and I have not heard from any of them so far, apart from my hon. Friend the Member for Gloucester (Richard Graham), who I think has been appointed to look after Indonesia. He is not in the Chamber at the moment, but I pay tribute to how he has been trying to engage with parliamentarians in a proactive way, and explaining what he is doing with companies from across the UK. He is helping them to enter Indonesia, and encouraging other hon. Members with companies that could benefit from participating. The Middle East Association and the Arab British Chamber of Commerce are also acutely involved in exports to the middle east. I hope that the Minister will give me an assurance that efforts will be redoubled to co-ordinate with all trade ambassadors, all-party parliamentary groups, the MEA and the ABCC to ensure that we have a co-ordinated approach as one country with one strategy, with all of us who are interested in exports consulted and utilised constantly to update our constituents on all the opportunities that exist.

I have come across instances where business has been lost in the United Arab Emirates, Iraq and other countries, when business men from those countries have wished to come to the United Kingdom to visit a particular project or institution—to see whether it is appropriate to build in their country or whether their company has the calibre to undertake such a project—and their visas have been rejected. As a result, the business has been lost, obviously to the great annoyance of the host country and the business people involved. There must be greater co-ordination between UKTI and the Home Office to ensure that visas are granted to the genuine business men from all over the middle east who are trying to come to the United Kingdom either for training courses or to look at projects and companies.

UKTI is good at high-value opportunities. As I have said, I recently had the privilege of meeting Paul Noon, the director of UKTI in the west midlands. I applaud the work that UKTI does and I am grateful to the Minister for all his efforts. In my view, there has been a radical shift over the last two and a half years. The Prime Minister has said that he wants our embassies to be shop windows for British businesses. To a degree, I can see a vast improvement in our embassies. A lot of that is a tribute to my hon. Friend the Minister and his colleagues who have ensured that all the people at our embassies, from the ambassadors downwards, are focused on supporting small and medium-sized companies to export overseas to the middle east and north Africa, but too many of these opportunities are the really big ones. We need a massively increased focus, drilling down in every MENA country to the smallest of opportunities, no matter how small. We also need the sharing of information between all British companies. We are very bad at exchanging information with one another in this country compared with our European Union counterparts.

This debate follows the last one, almost a year on. My colleague Mr Justin King and I are writing a report—it will go to every Member of Parliament, including the Prime Minister—about the real experiences of small and medium-sized companies and their feedback. I very much hope that the Minister will give me an assurance that he and his Department will take seriously that report and our passion for increasing British exports.

UK Relations: Libya

Debate between Jim Shannon and Daniel Kawczynski

Tuesday 1st November 2011 Westminster Hall

[Daniel Kawczynski]

I thank the Minister for that. I recently had a meeting with a lieutenant-colonel who had served in Basra. He told me that when he met Mr Blair, he said, “Okay, we brought peace to Basra, so where are all the suits?”. In other words, he wanted to know why Mr Blair had not brought in British companies to reconstruct Basra. Some of the huge problems that we have had in Iraq stem from the fact that we were too slow in bringing in British companies to reconstruct the country. However, we could not have just said, “Look, pack your bags and go to Iraq.” Many companies would have found that difficult, and we are now saying the same of Libya.

[Jim Shannon (Strangford) (DUP)]

In my constituency, there are a number of companies that are very keen to do business in the region. The trip that the Minister mentioned may have been an opportunity for them to do just that, but the incentive for British business to get involved is not fully pushed by Government. Does the hon. Gentleman feel that the Government should do more to encourage local companies, especially when so many are keen to do business?

[Daniel Kawczynski]

I agree with the hon. Gentleman. I have had meetings with leading industrialists, and with various Army officers who have served in Iraq and other parts of the world and who have experience of such matters. We have compiled a report, which we will send to the Prime Minister and the Minister, outlining some of the things that the Government have to put in place to ensure that there is confidence, and encouragement for British companies to go out there. The French are brilliant at that; they have a body called COFACE, which I visited in Paris many years ago. It is a nationwide organisation that insures, underpins and takes some of the risk out of French companies going abroad and investing in such projects. The Government should start up a similar insurance fund. We will put in £50 million, the Libyans will put in £50 million, and we will get another few hundred million from wealthy Arab countries. We will then pool the money, and it will act as an insurance policy for British companies that are reconstructing Libya.

I will send the report to the Minister, as well as to the Prime Minister, because we must get a grip on the issue. I could tell the Minister the names of hundreds of companies that I have met in the past six months that would like to work in Libya, but do not know how to go about it. They ask me about guarantees and about what kind of political support is in place.

Yesterday, I met the Labour peer, Baroness Symons, whom I respect greatly. She said that there had been good engagement with Libya previously. I hope that the Minister is aware that the Law Society has been in Libya to help with the rule of law and arbitration. The British Council has operated in Libya, advising on issues to do with women. Welsh universities have signed memorandums of understanding with the Libyan Education Minister to work and interact with Libyan universities. The Westminster Foundation for Democracy has been helping to develop democratic institutions and civil society. Crown Agents were also in the country, working on anti-corruption measures. Those wonderful institutions were already working in Libya under Gaddafi, and I pay tribute to the previous Labour Government for getting them into the country. However, I do not know how successful those institutions were under the brutal Gaddafi regime. Certainly, now that Libya is free, I hope that the Minister will do everything possible to help the Law Society, the British Council, Welsh universities, the Westminster Foundation for Democracy, Crown Agents and others to get to Libya to underpin all that work and to help start reconstructing the country.

The European Union had negotiations with the Gaddafi regime on various trade agreements, and I hope that those are speeded up as well. Apparently, Dominic Asquith has been a representative of Her Majesty’s Government in Libya, and I am keen to know what his views are.

Libya has been a passion for me all my life. When I was growing up in Poland under the communist regime, we had nothing. The regime was brutal and tyrannical, and everything was rationed. My late uncle and his family worked in Libya, and they used to send oranges from Tripoli to Warsaw. Receiving those oranges at kindergarten was like a miraculous experience. Children in Warsaw in 1978 did not know what oranges were; we had never seen these things. We peeled the oranges delicately, we ate them, we made marmalade out of the peel, we drew them and we talked about them. They were incredible to us. Of course, most days now I peel an orange and I do not think about it, but as a child in 1978 I thought, “What sort of paradise must this be for them to have these sorts of things?”. My interest in Libya has stemmed from that early childhood experience.

I love the Libyan people and I love Libya. I am so passionate about the country, and I am so grateful that the brutal tyrant has been deposed. I look forward to the people of the UK having a very strong friendship with the people of Libya for the rest of my lifetime.