Small Business Exports

Debate between Jim Shannon and Jack Brereton

Wednesday 20th March 2019 Commons Chamber

[Jack Brereton (Stoke-on-Trent South) (Con)]

What I want to explore in this debate is how, where and with what resources the Department for International Trade is taking action to connect businesses, especially small businesses, with the Government’s export strategy. Small businesses account for more than 99% of UK private sector businesses; there are some 5.6 million of them. These are the innovators, and they have huge potential to export more, but not enough of them export outside the UK. The Federation of Small Businesses reckons that only about a fifth of its members are exporters, despite the expertise on offer from the FSB itself. One thing that has struck me is that a great deal of information, advice and assistance is available to potential exporters but the question remains: how can we ensure it is hitting home? How can we persuade and facilitate more small businesses to become exporters?

I welcome the announcement in last week’s spring statement that UK Export Finance will introduce a new general export facility and launch a consultation on UK Export Finance’s foreign content policy. It will be encouraging to small business that the proposed changes will recognise the full contribution of the UK supply chain and that a wider range of exporters will gain access to UK Export Finance support, but I hope the Treasury will look even more favourably on the Department for International Trade at the next spending review. It is vital that the resources are there to engage the local businesses of global Britain in the dynamic potential of the United Kingdom to be a great trading nation of the 21st century outside the EU.

The rewards from increasing our export success are such that a bit more spending—rigorously targeted, of course—will soon more than pay for itself through duties if more firms become confident exporters.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman beforehand to clarify the matter that I have a deep concern about—indeed, the Minister is probably aware of it as well. I have major issues with the changes for those exporting their goods to Europe and globally, because of the lack of clarity over food stamping and packaging and whether things can be accepted with dual stamps. That affects not only the export businesses but the packaging companies in my constituency, which have not received orders from local businesses and will not be able to process the huge order that will be coming when clarity eventually arrives. The Department of Agriculture, Environment and Rural Affairs and Department for Environment, Food and Rural Affairs do not seem to have got their act together on this yet. Does the hon. Gentleman agree that this lack of clarity affects not simply export businesses, but the subsidiary businesses, such as the packaging firm in my constituency that depends on them? This must be seen as a departmental priority.

[Jack Brereton]

I thank the hon. Gentleman for the points he has made, and I know the Department will be looking into these issues.

It is essential that we seek to open markets up, and the ambitious free trade agreements that the Department for International Trade will deliver are a key part of that. Indeed, what would be the point of delivering those free trade agreements if we did not have exporters eager to target and take advantage of them? I have read the Government’s export strategy, which is an excellent and comprehensive document—one that I am sure will be drawn on in the Minister’s reply, to the benefit of the House. It would be helpful for there to be an MP’s guide to signposting business to export support programmes, because that is certainly an issue that all colleagues will be keen to engage with at a constituency level.

UK Research Centre for Ceramics

Debate between Jim Shannon and Jack Brereton

Wednesday 21st February 2018 Commons Chamber

[Jack Brereton]

I thank the hon. Gentleman for that point. I agree that there is a need to ensure that our industries are protected, and the Trade Bill and the customs Bill, which he cited, provide an opportunity to do that. I would like to see a continuation of measures that we have seen in the EU—a continuation of those trade remedies that would ensure that the ceramics industry continued to receive those protections.

I wish to set out two key arguments. The first is that a UK research centre for ceramics is a vital addition to global Britain. The second is that, obviously, such a research centre should reside in the global home of ceramics, Stoke-on-Trent. Why do we need a research centre? For thousands of years, ceramics have been valued for their unique properties of durability, strength and resistance to corrosion. Thanks to hundreds of years of technological advances in ceramics manufacture, we now, regrettably, take for granted the affordability and ubiquity of ceramic products.

[Jim Shannon (Strangford) (DUP)]

I asked the hon. Gentleman beforehand whether he would agree to my intervention. Does he agree that there is a need to keep alive the skills and the lessons he referred to, which have been handed down through generations, so as to ensure that those with an interest and desire to learn this beautiful, wonderful ability can access the tools and know-how to do so? Does he further agree that although it is wonderful to have the worldwide web at our fingertips and all the information it holds, there is something to be said for having the clay in your hands and the skills to mould it?

[Jack Brereton]

I thank the hon. Gentleman for that point and I totally agree that it is incredibly important that those skills come through. I have spoken to people from a number of businesses in my constituency, and they need more of those skills coming through, because we have the jobs and opportunities needed to absorb them. It is incredibly important, therefore, that we continue to see those skills coming through, and this research unit is about part of that.

We are all familiar with household ceramic goods, both functional and ornamental, but the ceramics sector is much wider than just the market for household goods. Increasingly, advanced and technical ceramics are being used across the global economy: thermal barrier ceramic coating is used in jet engines; ceramic armour is used in the defence industry; ceramics are used in semiconductors needed in electronics; bio-ceramics are making important advances for the medical sector, in operations and, in particular, prosthetics; solid oxide fuel cells are radically benefiting the energy market; and in the world of digitalisation and virtual reality, the concrete reality of ceramics still reigns, including in digital printing materials. We need to make sure that global Britain leads this industry—that it is our nation and Stoke-on-Trent that harness the power of the 21st century ceramics revolution. Global Britain should not be saddled with a £900 million annual trade deficit in ceramics, given that the products we make are the best in the world.

A UK research centre for ceramics would be a magnet for research, skills and design talent. It would support and expedite the journey from inspiration and early-stage research, right through to fully commercialised products and processes. It would be the go-to place for firms seeking to source and exploit the latest ceramic technologies.

Currently, the UK lacks the R&D infrastructure for seamlessly researching and exploiting the range of novel sintering technologies. That cannot go on. Sintering is the process of using heat or pressure to compact materials such as clay without the risk of liquefaction, which would destroy the material completely. It is a process that has long required a high level of expertise. Now, with advanced sintering—flash sintering—revolutionising the industry’s ability to transform the properties of input materials, and using significantly less energy across the process, we stand at the threshold of a new era of high productivity and exceptionally fine goods.

To be globally competitive, we need to provide the environment to facilitate that process, not least in respect of Stoke-on-Trent’s Lucideon, the development and commercialisation organisation that specialises in materials technologies and processes and is leading the sintering revolution. This is not about picking winners; it is about unlocking the doors for winners to walk through.