UK Trade & Investment

Chris White Excerpts

Tuesday 19th March 2013 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

I congratulate my hon. Friend the Member for Enfield North (Nick de Bois) on not only securing the debate, but his comprehensive remarks.

The UK remains the ninth largest manufacturer in the world, but over the past few years, our export performance has been poor. In 2000, our share of world goods exports was 4.4% but, unfortunately, that had fallen to 2.8% by 2009, which is quite shocking. Perhaps that is why so few Labour Members are in the Chamber.

[Ian Lucas (Wrexham) (Lab)]

Will the hon. Gentleman give way?

[Chris White]

Unfortunately, I cannot, given the time available.

There are, however, now positive signs of improvement. In contrast to financial services, exports in manufactured goods have risen since the financial crisis. Fortunately, in the period between 2008 and 2011, exports of finished manufactured goods grew by more than 16%.

Ultimately, exports depend on good products and pioneering companies, such as DCA Design International. I will not go through a list, as my hon. Friend the Member for Witham (Priti Patel) did of all the jam makers and so on in her constituency, but my constituency has similar manufacturers.

The Government have a role in supporting businesses to export, and I hope that they will use the upcoming Budget to provide additional resources to UKTI so that it can reach out to even more businesses. The Prime Minister has announced a national challenge for the UK to encourage more small and medium-sized businesses to export, which is essential. As has been mentioned, if the UK exported at the EU average of about 25%, rather than 20%, about £36 billion would be added to the UK economy.

Businesses need support if they are to export, particularly smaller businesses that do not have large teams and resources to enable them to get into such markets. Our competitors in Europe and America see potential growth in the BRIC countries, as has been mentioned, and their Governments seek to provide their companies with every single advantage. That is why collaboration between the Foreign Office and UKTI is so important. The Foreign Secretary has made it clear that he wants British embassies to roll up their sleeves and support British business. We must also ensure that officials have their ear to the ground for new trade opportunities and then feed such information back to UKTI. We need to create a dual hub-and-spoke system, with the UK’s vast diplomatic opportunities feeding back information to UKTI and trade bodies in the UK, while they in turn have their own systems to feed back local information to chambers of commerce and business networks.

The Foreign Secretary has tried to reverse the decline in trade offices in consulates throughout the world, but we need to do more than merely reverse the decline—we need to expand, particularly in the emerging markets I mentioned earlier. Information is crucial in an age in which companies can communicate in minutes and deals can be won or lost through the smallest of delays. In the longer term, we also need to encourage businesses to make personal connections with emerging markets.

As a British Chambers of Commerce survey in 2011 pointed out, contacts are often key for businesses exporting into new markets. Businesses that had employees or directors who had lived abroad were even more successful. However, the most direct way in which we can support British businesses to export is by ensuring that our export products and guarantees are as competitive as possible. The Government should therefore commission a report into the comparative competitiveness of the UK’s export guarantees and credits, and the effectiveness of our institutions such as UKTI, so that we can learn from the success of others, and accordingly improve our own standards and the way in which we work.