Special Representative for International Trade and Investment

Ed Davey Excerpts

Wednesday 4th May 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The hon. Member for Newport West (Paul Flynn) has made a number of points that I do not think I can answer tonight, because they are not the responsibility of my Department. I consider that the question of whether he is gagged by the orders of the House is a matter for other House authorities, and I am sure that it will be dealt with in the usual way. I assume that he does not expect me to deal with those points. However, he managed to raise other important issues about the role of the special representative for international trade and investment, although I should say at the outset that I could not disagree more with his conclusions about that job.

The hon. Gentleman talked a great deal about what he considered to be the problem of a lack of competition in the job, as if membership of the Royal Family were open to competition. I think most people will find that a rather odd position for him to take. However, I am pleased to note that he is now in favour of competition, as he does not often take that line.

I, for one, believe that the Duke of York does an excellent job as the UK’s special representative for international trade and investment. He promotes UK business interests around the world, and helps to attract inward investment. He has been the UK’s special representative since 1 October 2001, and it is interesting that there has been no debate of this kind during the period of nearly 10 years since his appointment. During that time he has been a long-standing success in the role, representing a continued interest on the part of the Royal Family in supporting British business and international trade and investment.

Since taking on his role, the Duke of York has built a substantial network of contacts at high level in both Government and business overseas. Those links help the duke to make a major impact in a range of markets around the world. He has made a valuable contribution in developing significant opportunities for British business through the role, and continues to do so.

The hon. Gentleman could have talked about how he would assess that, and what evidence we could provide. Of course, it is often difficult to prove that a particular intervention by a particular person at a particular time results in a particular success. However, if we listen to the voice of British business, it is absolutely clear that it endorses the role of the Duke of York. Many who have worked with the duke have found that he is a real asset for our country in supporting UK business. A letter from a group of prominent business people published recently by The Sunday Times underlines the duke’s commitment to helping the country to respond to the current very difficult period for our economy through the work that he does in support of a trade-led recovery.

[Paul Flynn]

Does the Minister realise that that list, which was published a very short time ago, was four years old, and that many firms on it declined to refresh their support for the expression of sentiments of support for the envoy?

[Mr Davey]

I am surprised that the hon. Gentleman makes that point because, as I shall go on to set out, a lot of people have contemporaneously spoken out in favour of the Duke of York’s work. That letter did say that

“the efforts made by him need to be encouraged—for he does it well.”

I am surprised that the hon. Gentleman did not mention that, and I am sure that the vast majority of those who have seen the duke’s work at first hand would echo that sentiment.

[Dr Julian Lewis (New Forest East) (Con)]

Does the Minister agree that one reason why the Duke of York has considerable credibility is his distinguished record as a former member of the Fleet Air Arm who gave valuable service in the Falklands war? That shows a degree of commitment over and above any inherited responsibilities that he might be considered to have.

[Mr Speaker]

Order. We must take great care, and care has not been taken sufficiently on this front, to avoid straying into matters of conduct that render someone suitable or not suitable for a particular role. I believe I am right in saying that “Erskine May” is clear that matters may be raised only on a substantive motion and such matters include the conduct of the sovereign, which we shall therefore strive to avoid discussing.

[Mr Davey]

The duke is not paid for the work that he does in this role. UK Trade & Investment pays for the costs of UK-based and overseas visits undertaken by the duke and his supporting staff, and these visits are undertaken in agreement with UKTI and are in support of UKTI objectives. Let me give an indication of the cost of these visits. In 2008-09, the costs amounted to just over £149,000 and just over £154,000 in 2009-10, and the flights are paid for by the royal travel budget. I believe that these activities represent excellent value for money.

[Paul Flynn]

Does the Minister, a fair-minded person, recognise that what he is saying illustrates how out of balance our debating system is? He is free to praise the envoy, but I am not free to say anything derogatory about the envoy and so our debate is completely out of balance. Is the Minister not illustrating the need for our Standing Orders to be changed?

[Mr Davey]

As I recall it, the hon. Gentleman said that he was objecting to the cost of this post, so I am rebutting his argument, which he was free to make within our Standing Orders, by arguing that the duke’s work provides value for money. I am rebutting that point of substance.

Let me now deal with the duke’s appointment to this position. We are sometimes asked: what are the terms of the duke’s employment as special representative for international trade and investment? Does he have a contract? The hon. Gentleman wanted to have a job description and competition for the role. We are also asked who invited the duke to take on this job. In response, I wish to make a number of key points. First, the role is not an appointment within the remit of the civil service commissioners or the Commissioner for Public Appointments. It is a special role and it represents a continued interest by the royal family in supporting British business and international trade. Prior to the Duke of York’s appointment, the Duke of Kent was vice-chair of the British Overseas Trade Board from 1976 and latterly vice-chair of British Trade International until April 2001—the Duke of York was appointed in October 2001. So the royal family, in different roles and in different personages, have been fulfilling this type of role for many years. This is not a new thing and successive Governments of different persuasions have found this work to be valuable. Diplomats and business people in our country have valued the contribution made by the royal family in this regard.

[Stephen Phillips]

My hon. Friend makes the legitimate point that many organisations and British business have found this role to be valuable for how they conduct business overseas. This year, many British businesses have recorded in the printed media that they have found in the recent past that the role of the Duke of York—they made no reference to his specific conduct—to be useful to the way in which they have conducted their business and their exports overseas. I am sure that the Minister would agree with that.

[Mr Davey]

My hon. and learned Friend is absolutely right and I can certainly agree with that. It is also worth pointing out that the Duke of York not only helps UKTI and its related activities but assists in the objectives of other Departments, such as the Foreign and Commonwealth Office and the Department of Energy and Climate Change, when he is asked to do so.

The duke’s programme of visits is agreed by the Royal Visits Committee. A great deal of discussion and planning go into deciding where His Royal Highness should visit and UKTI works with the duke’s private office to develop a programme of visits that complement the work and support the objectives of UKTI and make best use of the duke’s time to support the strategic aims and goals of Her Majesty’s Government. It is not a question of the special representative freelancing: he plans his programmes to operate within a strict framework. The programme is reviewed regularly and is confirmed alongside other overseas visits undertaken by other members of the royal family and by senior politicians such as the Prime Minister, Foreign Secretary and Business Secretary.

The duke’s visits focus primarily on those priority markets for the UK where the duke is well placed to make a positive impact. His visit programmes generally include visits to priority markets in the middle east, south-east Asia, China, India, Russia, central Asia and South America, as well as to the US and other developed markets. The visits relate to sectors that are or will be key to the UK’s future export growth. They include financial services, energy, advanced engineering, information and communication technology, life sciences and creative industries.

The duke has been visiting many of those priority global markets since 2001 and has developed strong relationships with key opinion formers and decision makers. For example, in 2008-09, His Royal Highness undertook nine overseas visits, visiting 16 countries. These involved 117 business engagements and openings, 27 political engagements and 28 with Heads of State. In 2009-10, His Royal Highness undertook 12 overseas visits, visiting 18 countries. This involved 163 business engagements and openings, 39 of which were political and 18 with Heads of State. This is a record of engagement that this House should recognise.

[Paul Flynn]

I hesitate to interrupt the Minister reading from the websites of the person and the Department involved, but he has made no attempt to answer my questions or to respond either to the serious criticism by the human rights organisations I cited or to what the former ambassador said about there being a far better way of doing the job, which is to allow ambassadors to do the job for which they are paid and skilled. Is that not a fair criticism?

[Mr Davey]

I disagree. I have provided evidence rather than innuendo to show that the Duke of York is undertaking a very valuable role. Let us remember why the Duke of York does this role: because it is in Britain’s interests. It is in the interests of firms, their employees and our economy. The previous Government recognised that and so do we. We have inherited a sick economy where the prospects of growth funded by the public sector or by consumers are very limited, to say the least, after the poor management of the economy by Labour over 13 years. If we are to grow, there are only two sources of growth: trade and investment. Having someone with experience and clout as the UK’s special representative for international trade and investment is something that we throw away at our peril.

I do not know what has motivated the hon. Gentleman. His timing is particularly inappropriate, coming as it does four days after the royal wedding, when I believe the whole country showed the support that they give to the royal family and all its members. I am proud to be here to support the role of His Royal Highness.

Question put and agreed to.