Oral Answers to Questions Debate
Full Debate: Read Full DebateGraham Stuart
Main Page: Graham Stuart (Conservative - Beverley and Holderness)Department Debates - View all Graham Stuart's debates with the Department for International Trade
(3 years, 10 months ago)
Commons ChamberTechnology is an important and growing sector. In fact, sales of our digital tech exports totalled £23 billion last year, and Oxford Economics thinks they will be worth up to £31 billion by 2025. Our ambitious approach to digital trade in free trade agreements will boost exports, and support economic growth, job creation and prosperity. We have negotiated strong measures, not least in Japan, and will seek similar outcomes in our talks with the United States, Australia, New Zealand and the comprehensive and progressive agreement for trans-Pacific partnership.
Will the Minister tell us a little bit more about the UK-Japan free trade agreement, and particularly how it will help businesses in Warrington South and the north-west to do more business with Japan?
There are specific issues including not having to worry about the added cost of setting up data servers in Japan because of the elements that look at data transfer; a guarantee that the trade secrets underpinning innovations of entrepreneurs in my hon. Friend’s constituency are protected and do not have to be shared across borders; and a clear commitment that entrepreneurs on both sides of the agreement will be able to operate in an open, secure and trustworthy online environment.
The deal with Japan includes some very ambitious chapters on digital and data, and a deal with the United States is set to benefit tech firms. Will my hon. Friend advise how Black Country firms can make the best of these future opportunities?
Tech firms in my hon. Friend’s constituency and across the UK will benefit from the opening of markets and the minimisation of barriers to trade, which will allow them to expand internationally, not least in the Asia-Pacific region. The joint DIT and Department for Digital, Culture, Media and Sport digital trade network, which was launched by my right hon. Friend the Secretary of State in June, will significantly improve our support for businesses from my hon. Friend’s constituency in that fast-growing part of the world.
My Department recorded 331 foreign direct investment projects in the northern powerhouse in 2019-20, creating or safeguarding more than 11,000 jobs. DIT is dedicated to supporting international investment into the UK, and it can be argued—in fact it is quite hard to argue against—that we are the most successful major economy in the world in attracting foreign direct investment to our shores. Our dedicated staff across the north work closely with partners in Yorkshire and Humber to attract new and existing investors, match them to opportunities and maintain our position of having more foreign direct investment than any other nation in Europe.
Does the Minister agree that with all the new markets his Department is opening up for the UK, the Government must do all they can to support the many young entrepreneurs of Don Valley?
My hon. Friend is absolutely right. How refreshing it is to have a representative in the Don Valley who cares about business and recognises that trade needs to look at the wide scope of issues but at its heart is about the economic benefit that it brings to local people. Again and again, in session after session of these questions, the Labour party focuses on everything other than the economic benefit—the jobs and prosperity—that trade brings. That is why this Government will continue to support entrepreneurs; the Opposition come up with complex and sophisticated arguments, but again and again they oppose the very measures that will help to ensure employment and prosperity for the people of this country.
Since the start of covid-19, my Department has been committed to doing everything it can to help exporters. Helping them to bounce back with extensive economic recovery measures continues to be a major priority. After significant monthly decreases in UK trade during the early stages of the pandemic, the UK is now seeing record month-on-month increases in exports, rising by 16.5% in June and a further 5.6% in July.
I recently visited Blachford UK in Holmewood in my constituency. This brilliant manufacturer enjoys fantastic relations with many countries around the world, particularly Canada. Does the Minister agree that it is a shining example to exporters around the country and we need more companies like it, particularly in Bolsover?
Absolutely—we need more companies like Blachford. That is why we are transforming our digital offer to exporters and negotiating a continuity agreement with Canada. It would be great to see Opposition MPs joining us in encouraging their local exporters in the manner of my hon. Friend. I understand that he planted a maple tree at Blachford on a recent visit. I suggest that we should all be planting trees and celebrating our local exporters.
Export finance guarantees are provided through UK Export Finance, the UK’s world-leading export credit agency. UKEF’s mission is to ensure that no viable UK export fails for lack of insurance or finance, while operating at no net cost to the taxpayer. It recently introduced a new export development guarantee, which has seen £500 million provided to Jaguar Land Rover and Ford of Britain, with more in the pipeline.
I thank the Minister for that helpful answer. Does he agree that the take-up of the scheme among companies in Northern Ireland is not as high as it should be, and there needs to be more marketing and development of the scheme? Will he agree to a meeting between officials from his Department and me, and discuss with companies that have tried to access it, the problems they have encountered so that we can ensure the scheme benefits companies in Ulster?
The hon. Gentleman is absolutely right about the need to market more effectively. We have a brilliant suite of products. UKEF is world leading—again and again it is voted the best export credit agency in the world—and it is doing great work. We would love to open it up to more businesses, which is why UKEF is part of various bounce back plans, including my launch in Northern Ireland of our tech bounce back plan. I would be delighted to organise a meeting with him to ensure that Northern Irish businesses are aware of all the products that are on offer.
I thank my hon. Friend for his question. Innovation has always given our businesses an edge. Virtual reality and 3D specialist Amazing Interactives in my hon. Friend’s constituency is an example of how innovation can continue to take business and exports forward. Today’s innovators, like Amazing Interactives, will benefit from our new FTAs.
My hon. Friend is right, and last week I announced a new trade hub in Edinburgh, which will help businesses in Scotland to grow internationally and recover from the impact of coronavirus. The hub will promote opportunities for Scottish companies, and FTAs will provide access to our global network, which is provided in 115-plus markets. There is the support of UK Export Finance—[Interruption.] It is hard to hear oneself think with the chuntering from the Opposition Front Bench. Would it not be great if we saw the same interest in trade, and promoting trade, not least in Scotland, rather than chuntering and sideline messages?
First, let me praise my hon. Friend. If the allocation of free ports was based purely on the championing of their case by Members of Parliament, it would be a certainty that he would have one in his area. Yesterday, Her Majesty’s Treasury published the response to the consultation on free ports, which outlined how free ports will help to level up the UK economy, bring in new investment, create high-skilled jobs, and provide new opportunities in ports and the areas around them. Although it will be an open, fair, and transparent process, I have no doubt that the advocacy of my hon. Friend will set a precedent for others and, I hope, lead to a successful outcome for him.