Covid-19: Economic Recovery

Baroness Hooper Excerpts

Tuesday 20th April 2021 Grand Committee

[Baroness Hooper (Con)]

My Lords, faced with the triple effects of climate change, the global pandemic and Brexit, our economy—indeed, every economy in the world—is seeking solutions. Not all have the added strain of Brexit, of course, but on that basis it may well be that our experience and solutions could be shared with other countries, perhaps particularly with Commonwealth countries.

On the basis that, in order to build a new future, the role of government is to create the right environment to develop new ideas, create jobs and, as a free-trading nation, stimulate exports across a wide spectrum, the Government have clearly aimed to do this and have looked hard and well at solutions. I am grateful not only to my noble friend the Minister for her explanations today but to HMT for its useful background briefing.

I approach this from my perspective as a fairly new trade envoy, having been appointed last year, to Costa Rica, the Dominican Republic and Panama, and from my long-time background as a vice-president of Canning House, encouraging more trade with Latin American countries, leading trade delegations to those countries, and welcoming chambers of commerce and other leading industrialists from those countries. I must say that one beneficial result of Brexit is that the Government and businesspeople are looking for new markets and are well on the way to promoting and recognising trade opportunities in Latin America. The spread of Covid-19 has undoubtedly slowed down the process, and we need boots on the ground; we have to get people going out and looking for opportunities, which are now enabled by free trade agreements.

In all this, the Department for International Trade should be mentioned as a shining example of getting on with the job. First, it has negotiated new free trade agreements. Admittedly, many of those were rolled over from our EU days—the first, incidentally, was with Chile, in South America—but others, such as the Japan treaty, have brought in new, innovative and important sectors. Secondly, it has created a network worldwide of trade commissioners and support for our embassies as well as for the work of the voluntary trade envoys, all of which has, of course, been supported by the Treasury. Thirdly, it is delivering economic growth to all regions of the United Kingdom by encouraging new products to be manufactured, as well as services, for the export market.

I would like to dwell on that for a moment, because two excellent examples of regional activity can be seen in the northern powerhouse and the Midlands Engine, which co-ordinate and stimulate local industries and are preparing, as soon as it is possible to move around the world—they are already preparing virtually—to lead the sort of trade missions that I have mentioned to other parts of the world. I have a particular link with Liverpool, so I would like to mention that, here within Parliament, the All-Party Parliamentary Group for the Liverpool City Region is conducting an inquiry on building back better, which is currently looking at green travel, using low-carbon and hydrogen, and the role of ports. I hope to be very much involved with that.

I would also like to take this opportunity to emphasise the importance of joined-up government in our recovery from Covid. The Treasury, obviously, has the leading role, especially in the context of today’s debate. I am told that double tax treaties can be just as important for exports as free trade agreements, so of course the Treasury has a role there. I appreciate that the Treasury has consulted many bodies, but I hope that it will continue, along with other government departments, to monitor and consider the developments resulting from this package that we are considering.

My particular sectoral interests lie in education, energy and health—I spent time as the Lords Minister in all those departments—which are all regarded as priority areas both for trade opportunities and for the full national recovery from Covid. Some of those instances have already been mentioned.

Can my noble friend tell us if a cross-departmental mechanism has been set up to perform this ongoing role? I realise that co-ordination happens in Cabinet, but it does not always necessarily filter through to other levels in departments. If we are going to be efficient and successful, it is essential to have that sort of co-ordination.

The Government’s economic package to support and protect jobs, businesses and public services, and indeed this debate, is very welcome and important in highlighting all the issues.