(3 years, 1 month ago)
Commons ChamberOpportunities for UK exporters are significant. We are seeing exports rebounding this year and they are expected to grow by a further 8% next year, and further opportunities are being created all around the world as we have rolled over the existing EU deals, plus the EU itself, and started to negotiate other agreements. Of course, the first from-scratch agreement in principle was with Australia. I hope the hon. Gentleman would applaud and support this direction of travel.
That is all very well, but food production businesses in my constituency face a loss of trade, challenges with customs, and damage to their supply chains. They require to operate in today’s land, not some promised land that their business might never survive to be able to see. What is the Minister going to do to ensure that their difficulties are minimised and that support for them is maximised? They need butter today, not a promise of jam tomorrow.
It would very much help if the Scottish Government and the Scottish National party, of which the hon. Gentleman used to be a member, were to support the trade deals that we do to open markets around the world. He ought to know, as should his former colleagues, although I know they are pretty split even among themselves, that actually Scotland trades more with the rest of the world than it does with the EU. He will also note that EU volumes in May were back to the highest level since October 2019, so we are back to pre-pandemic levels with the EU. The teething problems are being dealt with, other problems are being minimised, and Government support is there. [Interruption.] It is about time that Scottish National party Members, who like to chunter from a sedentary position, got behind our exporters and stopped talking them down.
I congratulate my hon. Friend on her championing of her constituency and Cornwall’s farmers. We are opening markets, as we have discussed. We are activating farmers with our “Open Doors” campaign, and we are grateful for the support of the National Farmers Union and the Agriculture and Horticulture Development Board. We have a mentoring scheme, which I was delighted to launch in the south-west, and we are leading trade missions such as “Spring into Japan”, to make sure that on a greater scale than ever before we are engaging more farmers’ produce with global markets, leading to jobs and prosperity in her constituency and beyond.
I thank my hon. Friend for his excellent question. I am tremendously proud of UK Export Finance and its staff for the innovative way in which they have responded to the pandemic, with the record level—more than £12 billion—given to UK businesses supporting more than 100,000 jobs up and down the country. Behind those 549 companies, of course, stand 10,000 or more supply chain companies. UKEF, at no cost to the taxpayer, makes an enormous difference to the prosperity and success of this country.
Does my hon. Friend agree that the Government’s ambitious strategy for growing exports needs to include more agricultural councils in our embassies, a UK export council to help co-ordinate that strategy, and better promotion and marketing of brand Britain abroad so that we can ensure that farming and food companies in Eddisbury and right across the country can embrace the undoubted benefits and opportunities that UK free trade deals can deliver?
My hon. Friend cleverly tempts me to list the recommendations of the Trade and Agriculture Commission, which constructively seeks to improve our support for UK farmers. We look forward to responding to that as soon as possible.
I am glad you were not tempted. I am now suspending the House for three minutes to enable the necessary arrangements to be made for the next business.
(3 years, 2 months ago)
Commons ChamberHappy birthday, Mr Speaker.
Recognising the challenges that the sector faces, both I and my co-chair of the education sector advisory group, the Minister for Universities, continue to engage with colleagues across Government to explore options for further support.
The English language is arguably this country’s most successful export. Covid has of course devastated the sector, and with the international scene still challenging, the impact goes on and is deep and wide even as other sectors recover. Will my hon. Friend meet me, a delegation of MPs and officials from the Department for Business, Energy and Industrial Strategy and the Ministry of Housing, Communities and Local Government to work together to overcome the challenges that the sector faces and safeguard the future of this vital export, which is so important to Eastbourne and to the UK?
I would of course be delighted to meet my hon. Friend, and I congratulate her on her continued leadership in Parliament on behalf of her constituents and the country as a whole.
We are working to de-escalate trade tensions that negatively impact steel exporters, including our pursuit of a permanent resolution to the US section 232 tariffs, which so unfairly harm the UK steel industry. I am pleased to say that in terms of the EU we have agreed tariff-rate quota allocations for UK steel exports, without which the industry could have been hit by a 25% tariff and an estimated cost of £80 million in the first half of this year alone.
Another penblwydd hapus to you, Mr Speaker.
The greatest step that Ministers can take to protect our exports is to protect our steel industry as a whole. As my hon. Friend the Member for Sefton Central (Bill Esterson) asked earlier, will Ministers commit to working with Labour on a cross-party basis, as was promised in the Westminster Hall debate yesterday, to fix deficiencies in our trade remedies legislation and reverse the recommendations from the Trade Remedies Investigations Directorate that UK Steel has called “a hammer blow” to our industry?
The TRA has conducted a full review of the steel safeguard measure so that it applies to the UK in a proportionate and WTO-compliant manner. It is an independent body, as the hon. Lady knows, that provides unbiased evidence-based assessments of the need for remedies. For clarity, the Secretary of State—[Interruption.] It would be great to get through one answer without chuntering from the right hon. Member for Islington South and Finsbury (Emily Thornberry), but it seems to be impossible. The Secretary of State can only accept or reject the TRA recommendation as a whole; she cannot modify or partially accept it and she cannot extend the measure if the TRA does not recommend it. However, it is crucial that the Government have the correct tools available to allow them to tackle unfair trade, and the Secretary of State will be giving careful consideration to the trade remedies framework and the powers that it affords her.
China is an important trading partner for the UK, with bilateral trade worth £78.8 billion in 2020. In fact, China was our third largest overall trading partner and seventh largest export market last year, with UK exports to China amounting to £22.9 billion. The UK also remains a leading destination for Chinese outbound investment in Europe.
Coda Octopus, a company based in my constituency, has been encouraged by successive Tory Governments to expand its sales to China. Its world-leading Echoscope is used in underwater port construction and in renewable energy projects, and it does not have a military use. Yet despite a 23-year track record of exports, it is now losing millions of pounds in orders due to a change in attitude on export licences, and responses from the Minister’s Department are taking over 100 days. Will the Minister meet me so that I can sort this situation out for my constituents?
I thank the hon. and learned Lady for her reasonable question. It is a delight to have an SNP Member in the Chamber actually championing business and looking to open up markets. We have one of the most rigorous and thorough export licensing regimes in the world, and we are proud of it. Every application is looked at on a case-by-case basis against the consolidated criteria. However, I will ensure that a meeting is set up for her with the appropriate Minister to discuss this.
Happy birthday, Mr Speaker.
Two weeks ago, we heard that Jimmy Lai, the owner of the largest pro-democracy newspaper in Hong Kong, had not only been sentenced for a second time but has now had his assets frozen. This step makes it incredibly hard to continue to fund his journalistic enterprises, which in turn has a chilling implication for a free press in Hong Kong. Colleagues across this House have called on the Government to implement Magnitsky sanctions, but there is concern that the UK’s sluggishness to implement sanctions is because the Government seek a future trade deal with China. Can the Minister clarify: is the prospect of a future deal causing this Government to treat China with leniency it does not deserve?
It is one of the abiding characteristics of the left in general that if they cannot find a scare story they invent one. This Government are clear: we are not seeking a free trade agreement with China. We have led the world in challenging China where we have found it necessary to do so. Working with international partners, we seek to maximise impact on any actions China takes that run counter to its international treaty obligations, including detentions without trial, detention of human rights defenders, and persecution of some religious and ethnic minorities. We work with allies on the most effective means to challenge it. On 30 June, at the 44th session of the UN Human Rights Council, the UK read out a formal statement on behalf of 28 countries highlighting concerns about the human rights situation in Hong Kong and Xinjiang. I hope that the hon. Lady and other Opposition Members will never again suggest that we would do anything to put trade ahead of our responsibilities on human rights.
I thank my hon. Friend for his continued support for businesses in his constituency, and I agree with him that B&B Attachments is an example of UK manufacturing at its best. My Department was delighted to help B&B grow its business overseas by providing specialised advice and dedicated funding. The Department is doing all it can to help other manufacturing suppliers from across the regions and nations of the UK to achieve success overseas, including with grants from our £38 million international-isation fund.
I thank the hon. Lady for her excellent question, because trade show support is really important for putting British business on the front foot. We have worked across multiple industries to improve our digital and virtual offer, and I am delighted to say that in some areas that has led to higher levels of activity than we had before. I will make sure that the House is informed as soon as we have further to say about the plan, possibly following 21 June.
I am pleased to say that my Department has recently created the new Export Academy, designed precisely to equip businesses with the capabilities and confidence to export successfully. My hon. Friend is such a champion of his local exporters, and it is so refreshing to have Government Members like him championing local business. I believe that he is holding an exporters fair shortly, and I congratulate him on that. He will be pleased to hear that 259 businesses from the north-west have joined the SME pilot Export Academy since it began, including 15 from the Burnley area. We have international trade advisers for the northern powerhouse, so additional resource has gone in there, and with his help, we will continue to champion northern businesses, and businesses from Burnley in particular, over the coming months and years.
(3 years, 2 months ago)
Commons ChamberMy thanks to the hon. Member for Richmond Park (Sarah Olney) for securing this debate, and I thank other right hon. and hon. Members for taking part.
We all know that trade is a key driver of economic growth that can trigger positive changes in a country’s economy. It helps to raise incomes, create jobs and lift people out of poverty. Of course, it has been the trade liberalisation over recent decades, sadly not embraced by so many on the left of politics, that has lifted more people out of poverty more quickly than ever before in human history—something that should be celebrated. Between 1990 and 2015, as trade liberalisation enhanced market access, the percentage of people across the globe living in extreme poverty plummeted from 36% to less than 10%.
We want no country to be left behind without the full benefits of free and fair trade, and we are determined to help people around the world get ahead on the strength of their enterprise and ingenuity. It is therefore excellent news that the agreements that we have secured with both Ghana and Cameroon provide tariff-free access to the UK market. That will provide a huge boost, encouraging export-led growth as well as supporting and creating jobs in Ghana and Cameroon.
Of course, increased trade with developing countries also creates opportunities for UK firms and consumers. These deals open up fast-growing markets to our exporters and provide British consumers with access to Cameroonian and Ghanaian goods, including firm favourites such as bananas and cocoa, at competitive prices. Both countries have also agreed to a gradual liberalisation of tariffs on UK goods. That will create further opportunities for our exporters, particularly of machinery and electronics, and will ensure that Ghana and Cameroon can continue to enjoy the best of British at competitive rates. These agreements will ensure that our trade with Ghana and Cameroon continues to blossom, and will support jobs and economic opportunity and living standards in Africa here and at home.
I have listened carefully to the Minister’s response so far. At the start of his speech he spoke about supporting the economy and increasing employment, and all the other great things that we hope to achieve through our trade deals, but could he be more specific about how this trade deal will help that? I listed in my speech a number of different ways in which I believe that these trade deals are undermining progress towards those goals. I shall be grateful if he will give us a little bit more detail.
I am happy to do so. Dealing with the issue around human rights, I hear the concerns that hon. Members have voiced, particularly about human rights abuses in Cameroon. [Interruption.] It is a serious topic, and it would be best served if we did not have so much chuntering from the Front Bench by the right hon. Member for Islington South and Finsbury (Emily Thornberry), as I am sure everyone would agree.
Our long-standing relationship with Cameroon allows us to have open, candid discussions on key issues. Violence does appear to have decreased in recent months compared with the peak of the conflict, but we continue to call for inclusive dialogue and an end to fighting in the north-west and south-west regions, through direct conversations with the Government of Cameroon and through international bodies, as the hon. Member for Richmond Park suggested we should. We have urged the Cameroonian Government to work with the Office of the UN High Commissioner for Human Rights and have called for impartial investigations to ensure that perpetrators are held to account.
In March, the Minister for Africa, my hon. Friend the Member for Rochford and Southend East (James Duddridge), travelled to Cameroon and met President Biya, Prime Minster Ngute and Foreign Minister Mbella Mbella and made our position clear. We continue to monitor closely the human rights situation with Cameroon—
I will not give way.
This Government’s position is that beneficial growth and support for democratic principles are not mutually exclusive; in fact, the former is an important part of the latter. As we all know, more prosperous countries tend to be more secure and peaceful. For that reason, our focus remains on ensuring trade continuity, full ratification of the agreement and supporting trade-led growth in Cameroon.
I will turn now, if I may, to trade with Ghana. Our agreement with Ghana was signed on 2 March, restoring trading terms that had applied until the end of 2020. Our Department had long sought to conclude an agreement with Ghana. We proposed a deal on the same terms as Ghana had with the EU; I do not recall the hon. Member for Richmond Park being so passionately opposed to it when it was an EU deal, but perhaps that just comes with her party badge. Despite our consistent attempts, Ghana chose not to engage in talks on that basis for over a year. Between the end of the transition period and the agreement’s coming into effect in March, Ghana was instead eligible for preferential tariff rates under our generalised scheme of preferences. The UK made every endeavour to avoid that gap, but doing so was not entirely within our gift.
Nevertheless, I am proud to say that once meaningful engagement was established, both sides worked at an exceptional pace. We were able to minimise disruption to businesses by concluding negotiations in record time, and we look forward to working with Ghana fully to realise the potential of this agreement to provide vital jobs and livelihoods, as well as strengthening our long-standing ties.
Of course, one of the problems, Mr Deputy Speaker, is that if you base a lot of your argument on briefings provided by pressure groups, you can sometimes be misled. A bridging mechanism—
Let’s have a proper debate.
The debate was obtained by the hon. Member for Richmond Park, and I do not think we need chuntering from the Opposition Front Bench, let alone so loud or rude.
I have no intention of giving way. I would like the right hon. Member for Islington South and Finsbury to be quiet.
Order. We heard the contributions from the Opposition side in absolute silence. I now want to listen to the Minister’s response with the same courtesy.
Thank you, Mr Deputy Speaker.
A bridging mechanism ensured continuity of Cameroon’s duty-free, quota-free access, so there was no disruption similar to that with Ghana; I am afraid that the hon. Member for Richmond Park was misled.
Some hon. Members have voiced concerns over the relationship between the Ghana agreement and that country’s ambitions for regional integration. Since 2016 the EU’s agreement with Ghana has been in place despite Ghana’s existing ECOWAS membership. That is also true of Côte d’Ivoire, another ECOWAS member with a trade agreement with the EU. Although this debate does not concern Côte d’Ivoire, it is worth noting that we have also rolled over that bilateral agreement. We are working closely with its Government to develop our relationship further. The UK’s agreements with both Ghana and Côte d’Ivoire include provisions from the EU agreements on working towards a future trade agreement with the west Africa region. We look forward to discussing this prospect with our west African partners.
On scrutiny, it is important to note that Parliament has already had the opportunity to scrutinise existing EU agreements. As with all continuity agreements, we follow the statutory process of laying agreements under the Constitutional Reform and Governance Act 2010, but in line with this Government’s commitment to transparency, we went well beyond the statutory requirements of CRAG and provided comprehensive information to Parliament to support its scrutiny of our trade policy approach.
On the rendezvous clauses, our agreements with Ghana and Cameroon retain provisions from the original EU agreements, which provide for further negotiations relating to specific aspects of the treaties: for example, a provision to negotiate further commitments on sustainable development with Cameroon. This is in line with the principle of providing continuity of effect that has guided our approach to all continuity agreements. The parties are not obliged to make changes. Any updates would be negotiated, and changes to treaties would be subject to further parliamentary scrutiny. [Interruption.]
I now turn—preferably without further chuntering from the Opposition Front Bench—to the concerns that hon. Members have raised regarding the environmental provisions in these agreements. In line with our international obligations, the Government will continue to ensure a high level of protection for the environment in all new trade agreements. We have long supported the promotion of our green values globally, and this will continue now that we have left the EU and become an independent trading nation once again.
The UK’s trade agreements with Ghana and Cameroon secure liberalised tariffs for businesses and pave the way for further economic growth as the world seeks to build back better from covid-19. These deals give British consumers access to more products at competitive prices and will see more of the best of British enjoyed by the people of Ghana and Cameroon—something that it seems the hon. Member for Richmond Park is not in favour of.
I can assure the House that we remain alert to human rights and environmental concerns at all times, but we believe—unlike, it would seem, Opposition Members—that encouraging greater trade gives us an opportunity to offer a hand up to those most in need by creating the opportunities and employment they need to rise out of poverty. If we took on the suggestions of Opposition Members, we would do the opposite: we would close the door to those countries and the opportunity for their people to prosper and grow. These agreements are further evidence of global Britain’s determination to champion free trade—something that so clearly does not have many advocates on the Opposition Benches. We will champion free trade around the world that fosters growth, creates jobs, and raises living standards for all.
Question put and agreed to.
(3 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship this morning, Mr Paisley. I am grateful to my hon. Friend the Member for Hertford and Stortford (Julie Marson) for securing this debate and for all the contributions, which were focused on the importance of investment to the livelihoods, the prosperity and quality of life of people in Members’ constituencies and beyond. It is a privilege for me to be able to speak about the role of the new Office for Investment, a joint venture between No. 10 and the Department for International Trade, to cement the UK as a global hub for investment.
The UK’s approach to investment is driven, and needs to be driven, for the reasons that my hon. Friend the Member for Hertford and Stortford laid out, from the top—from the Prime Minister—who is showing the world that the UK is open to investment, and that Global Britain is a vision and a reality, not just rhetoric. As we seek to build back better in the wake of covid-19, we have to use our newfound freedom to go further and faster than ever to drive jobs and growth across the country.
The Government are determined to secure more investment opportunities in order to level up every region and nation of the UK with new jobs and businesses. The Office for Investment is very much focused on the levelling-up agenda, as the whole of Government needs to be.
We do not in any way want to surrender the power, attraction and magnetism of London and the south-east. When I was Minister for Investment, the majority of investments into the regions came as a secondary investment from companies that had previously invested, often, into London and the south-east. This is about keeping the best of what we have. As my hon. Friend the Member for Hertford and Stortford said—she may even have understated the point—not only are we the leading investment destination in Europe, but by size we are probably the most attractive foreign direct investment economy in the world. Only the United States and China-Hong Kong have higher levels of FDI. We know that the FDI tends to lead to more research and development; it leads to more exports; and it leads to higher wages, which we would all support.
The Office for Investment lies at the heart of making that happen, by identifying and tearing down the barriers faced by top-tier investors. It sends a big signal, which is important, and it is tied to the Prime Minister, but the aim is not that it should grow into a behemoth. It is a very small, strategic group, working, through my colleague Lord Grimstone, with DIT, which, in various guises over the years and now as a dedicated trade Department, has been at the heart of delivering the offer to investors. The Office for Investment is bringing that signal, with the imprimatur of the Prime Minister. By being at the top of Government, it brings the convening power that only the Prime Minister’s Office has across the rest of Whitehall. As colleagues have suggested, this is about having a coherent offer. It is pointless to have a great initiative here if a very slow response elsewhere ruins the pitch, which should be carefully crafted and prepared, as my hon. Friend the Member for Hertford and Stortford pointed out.
It is estimated by industry that in the first three months of 2021 alone, the UK FinTech sector—my hon. Friend highlighted the importance of venture—raised more than £2 billion in more than 100 investment deals. How are we going to be successful in the long term? It seems to me that science, innovation and technology—and I would include education in the piece—are at the heart of how we shall deliver competitiveness for the UK in the longer term. That is at the heart of our offer. Venture is so important. Even last year, in the pandemic, we saw another rise in venture investment into the UK. It is creating that science, innovation and culture here, and having a strong educational offer that brings in the brightest people from around the world, that all adds to the UK having a uniquely favourable role to play. Then what is needed is to put in place the funding to make this the best place in the world from which to start one of those businesses and grow to scale.
We want to put in place those factors and the finance. I think that NASA called the growth path for businesses the “valley of death”. We want to ensure that we have all the steps covered going forward. That is why it is so important that we look to partner with others—the Office for Investment plays a critical role in that—and that the Treasury and others show flexibility in the new sovereign investment partnership with the UAE, as my hon. Friend the Member for Hertford and Stortford rightly highlighted. It is precisely in order to put such funds in place to support UK business that the OFI can deliver in a way that we have perhaps not seen before.
The Office for Investment will help drive forward our recovery to the benefit of people up and down the UK. It comprises a crack team of specialists who are working hard to land big investment opportunities. The OFI is there to help influence the overall environment but, in terms of particular projects, it is aimed at the top end. The aim is not to fall. It is working hard to land those big opportunities, while continuing to uphold the highest standards in scrutiny and security. As has been said, officials report directly to my good friend Lord Grimstone, in his role as joint Minister for Investment at the Department for Business, Energy and Industrial Strategy and the DIT. The Office for Investment will bring together the best in the business from across Government and around the country to drive forward our investment-led recovery.
The Office for Investment is already delivering results. It was great to hear from the hon. Member for Strangford (Jim Shannon) about the thousands of jobs that have been created in Northern Ireland, but we want to go further. That is why we are setting up a DIT trade hub in Belfast to ensure that Her Majesty’s Government are working closely with Invest Northern Ireland in a more effective way, to ensure that the global reach of the UK Government and the staff we have in more than 110 countries can maximise the investment that comes into Northern Ireland.
We have seen the UAE investment. We hope we will also see investment from other high-growth markets. If I had to think of what DIT’s fundamental role is, it would probably be hitching or aligning—whatever word we choose—the UK with the fastest growing parts of the world. That is what we have the opportunity to do, and we have to use our flexibility. In the same way that that flexibility has allowed us to lead Europe in vaccines, we have to ensure that every time we make the same brave judgments and create the conditions to deliver success.
I should give my hon. Friend the Member for Hertford and Stortford a minute to reply, but are there any questions I should pick up on?
Okay. I think I have touched on the levelling-up point. It is facilitating and helping to package the offer around the country. That is why we have our high potential opportunities scheme, whether that is rail in Doncaster or life sciences in other parts of the country.
I think we have dealt with the fledgling sectors and their importance. I entirely agree with my hon. Friend the Member for Hertford and Stortford. She was right to say it is beyond my purview to set out domestic policy, as DIT is entirely internationally focused. However, I am sure colleagues have heard her recommendations of creating frameworks that incentivise more UK investment in those ventures. My hon. Friend asked how the single front door will be resourced. The OFI will continue to be small, elite and strategic, not a big organisation. It relies for most of the work on DIT and BEIS and other Departments across Government, but has that convening and co-ordinating power, with the authority of the Prime Minister behind it.
I think that is enough from me, Mr Paisley. I am delighted to participate in this debate, and it is fantastic to see colleagues getting behind the Office for Investment and all the opportunities it brings to raise livelihoods and the quality of life across the nation.
As much as I would like to give the Member, Julie Marson, a minute to wind up, I am not able to under the rules for the 30-minute debates. I know she is more than happy with that and does not take it personally from me in the Chair.
Question put and agreed to.
(3 years, 4 months ago)
Commons ChamberNew research published alongside the Board of Trade paper “Global Britain, local jobs” estimates that 418,000 jobs were supported by exports in 2016 in Yorkshire and Humber. [Interruption.] Of course, the shadow Secretary of State laughs at the mention of jobs. It is notable how, in session after session, one issue that the she does not focus on is jobs and the livelihoods on which people depend. Of those jobs—I thank her for stopping her chuntering from a sedentary position. Of those jobs—[Interruption.] Oh, she has not stopped. Of those jobs, 234,000 were supported directly by exporting businesses, while a further 184,000 form part of the UK supply chain of exporting businesses.
I recently hosted an online Department for International Trade roundtable with local businesses, giving advice and support on exporting. Will the Minister please thank his team for helping to host that session? Will he make sure that the Department continues to invest in regional exporting advisers to support businesses across Colne Valley and Yorkshire so that we can continue to take full advantage of the new, exciting opportunities that international trade is bringing?
I thank my hon. Friend: is it not fantastic and uplifting to have someone who is genuinely dedicated to supporting and promoting the jobs upon which so many families depend? I am delighted that he has joined DIT’s parliamentary export programme, as have colleagues from right across this House, supporting and encouraging businesses to grow internationally, including through unlocking the benefits of the free trade agreements. As he rightly highlights, DIT has 28 international trade advisers dedicated to the Yorkshire region who help small and medium-sized enterprises to fulfil their exporting potential and connect them to international business opportunities.
Around 630,000 jobs in the north-west were supported by exports in 2016, and export—[Interruption.]
Export activity helped support a further 472,000 jobs in the region through the consumption spending of export workers in the wider economy. In total, more than 1.1 million jobs—not a laughing matter, Mr Speaker—in the region are linked to exports in some way.
Napoleon said that Britain was a nation of shopkeepers; I want to say that Bolton is a town of exporters. I recently hosted the parliamentary export programme in Bolton North East, seeking to help Bolton businesses such as Ajax Equipment and Velden Engineering to take advantage of new trading relations. Across Greater Manchester, foreign direct investment and foreign capital investment are worth £37 billion to the local economy. What actions is the Minister taking to put Bolton North East at the forefront of the global stage when it comes to research and development?
It is as much my hon. Friend as me who is putting Bolton North East at the forefront. He has joined colleagues as a member of the parliamentary export programme, and I congratulate him on hosting a recent event. He will have seen that we are working hard to help Bolton North East companies take advantage of new global opportunities and promoting a strong north-west R&D offer to international investors through the high potential opportunities programme in frontier sectors such as molecular diagnostics, lightweighting and sustainable packaging.
My hon. Friend is quite right to highlight the importance of supporting SMEs precisely to get into that international business space. That is why we are developing a new export strategy. We have the developing Export Academy, with a range of toolkits and information to support small businesses. We have the internationalisation fund: £38 million of grants to help businesses to overcome any barriers to international trade. Last but not least, we have UK Export Finance, our award-winning credit agency, which has increasing numbers of staff not only across this United Kingdom, but across the world to make sure that SMEs, wherever they go, can be financed and supported to realise those opportunities, which are many.
Like my hon. Friend, I am celebrating the freeport, which will make a positive difference and from which businesses will be able to export all around the world. Our export academy, the new export strategy and other elements are all there to help them to make the most of it, as well as, of course, probably the most ambitious trade policy ever conducted by a major economy in history, which we are successfully prosecuting. If I may, Mr Speaker, I would also like to thank my hon. Friend for briefing me ahead of my visit to Serbia last week, prosecuting the case for British businesses, in his role as the Prime Minister’s trade envoy to the western Balkans.
(3 years, 6 months ago)
Commons ChamberDriving access for UK exporters to high growth markets worldwide is at the heart of this Department’s work, securing new free trade agreements, removing trade barriers and informing, encouraging, connecting and financing exporters. Ninety per cent of global growth—90%—over the coming years is expected to be outside Europe, so that is why we are hitching UK business to the fastest growing markets and have recently applied to join the CPTPP.
I thank my hon. Friend for that answer. What action is the UK taking to increase our export footprint in future growth areas such as renewable energy, particularly in countries such as Mongolia?
The Department—not only in renewables, but in minerals as well—is running a mining export campaign for Mongolia, supporting UK-based investors and our mining supply chain, using the unique convening power of government to engage with the Mongolian Government and mining businesses. We are supporting UK investment in solar and waste energy plants, and are in discussions with the Mongolian Government on UK participation in infrastructure projects, including renewables, which my hon. Friend mentions, and hydropower. Atop all that is the cherry, in the form of my hon. Friend, who is the Prime Minister’s dynamic and effective trade envoy for the country.
I thank my hon. Friend for all the work he does to strengthen trading relationships between Britain and our international partners. Can he assure me that the Department for International Trade regularly engages with businesses of all sizes across the UK, including in north Wales, to ensure that the objectives of the Department are closely aligned with the needs of industry?
My hon. Friend is quite right to highlight this issue. DIT has a relationship with more than 200,000 UK businesses, ranging from large multinationals to small start-ups. Our UK-based sector teams, our highly experienced trade advisers across the regions and devolved Administrations, and our teams in our overseas embassies all work closely with UK businesses to support their export ambitions, while our export academy programme builds small and medium-sized enterprise know-how, enabling businesses to sell to customers around the world with confidence.
Steel manufacturers such as Liberty Speciality Steels in Stocksbridge produce high-quality components that are used across the world. Steel produced in Europe has half the carbon footprint of equivalent Chinese imports, and, as countries follow the UK’s lead in reducing emissions demands, demand for green steel will increase. How will my hon. Friend ensure that UK manufacturers such as Liberty Speciality Steels in Stocksbridge can capitalise on this growing market and make global Britain the world leader in green steel?
I thank my hon. Friend for that excellent question. There is a real opportunity here, is there not? That is why the Government have a range of schemes in place to help the steel sector to expand its green exports into those growing global markets. That includes establishing a £250 million clean steel fund and providing £66 million through the industrial strategy challenge fund to help steel manufacturers to develop radical new technologies and establish innovation centres of excellence. These funds will be accessible to all UK steel manufacturers, including those in my hon. Friend’s constituency, which I am sure value her long-standing commitment to the sector, and her permanent and regular efforts to raise them in the House.
Dream Climbing Walls is a Scottish business that was exporting to the high-growth market that is the European Union, which accounted for around 60% of its sales. After Brexit, its costs due to customs charges and delivery add-ons have skyrocketed. Goods that would normally take three to four days to arrive are currently a month in transit. Because of this Government, that business is now climbing the wall in a very different sense. What steps is the Minister taking to sort out this Government’s calamitous mess, and will he now urgently look at measures to compensate the thousands of companies just like Dream Climbing Walls that have lost out as a result of this Government’s actions?
May I congratulate the hon. Gentleman on his personal commitment to rigorous scrutiny and ensuring that the Government are held to account? I am sure that he would agree that others could do likewise in being similarly robust. As my right hon. Friend the Secretary of State has already made clear, it is our noble friend Lord Frost and the Cabinet Office who lead on that particular work. There are teething problems and there will be on ongoing frictions every day, but I am pleased to say that we are reducing those and are now seeing a return to pre-covid levels at our border. We will continue to work with and support our exporters in order to learn how best to do this. I hope that the hon. Gentleman will ensure that his Administration support his colleagues in the SNP and beyond to help support exporters.
I appreciate that the Minister wants to promote exports to some countries more than to others, but many of our constituents trade with Europe and need to safeguard their existing relationships before going looking for new ones. That is just good business practice. His Department telling exporters to open an office in the EU is not good practice when it is its answer to delays at the border that it was warned about. When are Ministers going to sort out the problems at the border that mean businesses are drowning in red tape?
I would have hoped that the shadow Minister would be aware of where Government responsibilities lie in terms of the negotiations with the EU, but I can assure him that the work is ongoing to do that. I am sure that the hon. Gentleman, who is, unusually for a Labour Member, a former businessman himself—[Interruption.] I am being endlessly heckled by the shadow Secretary of State, who probably knows where I am going with this, because she appears more interested in exports to Venezuela and Russia and only last month was chiding the Secretary of State for talking to the US—
Order. We don’t want to fall out again, do we? We have got Anne McLaughlin in Glasgow waiting.
With the Minister’s family background, we might get a good answer.
I must congratulate the hon. Lady on the speed of her uptake, because yes indeed, as I have said in my previous answers, this is for a different Department of Government. I think she suggested that the EU was a growing share of the global market, but it is not. Twenty years ago it was the majority of our exports; now it is a minority. Its share of global GDP has been falling. We are, at the direction of the Secretary of State, pitching our business to the fastest-growing parts of the world, not the more sclerotic.
Mounting costs are killing one of our biggest exports—culture—with additional duties on physical product and performers. My constituent Andy Smart has regularly performed at two comedy/ski festivals, but now one of them no longer accepts Brits, preferring the Irish, and the other has been cancelled as unviable because of Brexit obstacles. Can we work cross-departmentally to abolish these levies, because, as one of those festivals is called, it is literally taking the piste?
There is no one better in this House than the hon. Lady at marrying sociological insight with popular culture, and of course as an experienced DJ she knows more about music than most of the rest of us. I entirely agree with her, though, that we have to work flat out, in a cross-governmental way, to ensure that we minimise any frictions at the border for those vital and important cultural exports of which music is an important part.
The Department’s trade policies aim to support growth, productivity and jobs for British businesses. The OECD estimates that 6.6 million UK workers were supported by exports in 2015. In addition, the Department’s recently published impact assessment shows that the UK-Japan free trade agreement could increase UK GDP by £1.5 billion in the long run compared with trading under WTO terms.
Given that the St David’s day debate is being held this afternoon, will the Minister comment on his Department’s activities in promoting exports by Welsh companies, such as Ifor Williams Trailers, AE Sewing Machines in Ruabon, and the Rhug Estate’s famous Welsh beef and lamb in my constituency of Clwyd South?
It is never too early to celebrate St David’s day and the doughty exporters of Clwyd South, as well as the rest of the Principality. We are lowering barriers to Welsh exporters through trade deals, supporting them through staff in 119 countries, organising trade missions, providing online resources and championing them at international events. We have a long-standing relationship with the Rhug Estate, and we continue to support Welsh produce in particular, as part of both the Food is GREAT campaign and the Open Doors campaign, announced with fanfare only this week by the Secretary of State.
As the Government continue to hide the overall effect of their trade policies, the first official estimate from the European Commission shows that this Government’s Brexit deal will cost the UK at least 2.25% of GDP by the end of next year. In addition, two out of three supply chain managers report experiencing import delays of two to three days. Is that why the Minister is going so far to remove questions and avoid scrutiny of this disastrous Brexit deal in the Chamber? If he denies that, will he now publish the impact assessments prepared for his Government, which have so far been hidden away from those who deserve to know the real costs to business and families?
I can assure the hon. Gentleman that we are certainly not avoiding scrutiny; we are just directing it to where it rightly should go. He knows all about those who are seeking genuinely to avoid scrutiny. As I have been double-Drewed today, I pay tribute to the efforts he makes. All I will say as a final point—before I am cut short yet again by Mr Speaker, quite rightly, and even as I lose my attention because I am barracked so often by the right hon. Member for Islington South and Finsbury (Emily Thornberry)—is that he voted no deal, so it is odd for him to be complaining so much.
Of course, we would not expect the Minister to try to abuse his position.
Northern Ireland opposed Brexit, but it has happened. The protocol is its outworking, and it has to be made to work. The SDLP is determined to maximise the opportunities available to this region from being the crossroads between the UK and EU markets. We have written to the Minister seeking support in promoting Northern Ireland and this unique access. Will he commit his Department to promoting Northern Ireland to investors who are seeking access to both the EU and UK markets?
I commend the hon. Lady’s positive attitude. She is absolutely right: whatever our views on Brexit, we have to get on, make the most of it and support our businesses, as she is doing, and I can give her that commitment. We will absolutely work with her and Invest Northern Ireland, which does a fantastic job in conjunction with DIT to promote both investment into Northern Ireland and exports from it.
I am no longer shadow Minister, but happy to be contributing to this debate, Mr Speaker.
Moon Climbing, a specialist rock climbing supplier in my constituency, tells me how, since January, new barriers have damaged its trade with Europe. In line with the advice of DIT officials, it set up a base in the Netherlands to avoid the barriers and it anticipates that that will
“be our main base from which we service both the EU and the rest of the world”.
I heard the Minister and the Secretary of State say earlier that it is nothing to do with them, but, frankly, companies expect the Department for International Trade to take some responsibility for trade, so what are they doing to prevent more UK businesses moving abroad as a result of the damaging Brexit deal—losing UK jobs, GDP and tax revenue?
The British people decided to leave the European Union. We are supporting businesses, in Europe and beyond, but it is not overly complicated to accept that it is the Cabinet Office and the unit led by Lord David Frost that are taking responsibility for those negotiations. However, we work actively, and we run webinars with thousands attending, and I and other Ministers participate in those to give people the tools to overcome the frictions that inevitably result from our departure. I am pleased to say they are declining over time, and I am confident that we will return to where we were in 2019, when we were the only top 10 exporting nation in the world to see our exports rise and, the hon. Member will be delighted to hear, we overtook France to become the fifth largest exporter in the world.
While VAT in the UK is a matter for the Treasury, and in the EU it is the responsibility of member states, my Department is aware of SMEs feeling pressured to supply on a delivered duty paid basis. That is a matter for commercial decision between contracting parties, but none the less, we provide support for SMEs through our international trade adviser network, and just last week we held a webinar as part of the UK Export Academy dealing with Incoterms in general, of which DDP forms part.
Many SMEs have EU clients that are themselves SMEs, which understandably do not wish to be importers and thus take on extra regulatory burdens. Due to the insistence on DDP terms, UK exporters have to try to reclaim EU VAT. I hear what the Minister says about different responsibilities and so on, but in his co-ordinating and supportive role, will he agree to meet me and representatives of the British Promotional Merchandise Association, to hear at first hand the difficulties that its members are having and to explore solutions, even if they are cross-departmental?
In a belated attempt to score some points with Mr Speaker, I will simply say that I would be delighted to do so.
Bracknell businesses should be assured that we have a plethora of new initiatives to whet their exporting appetites. We are committed to helping businesses realise their economic potential through exports, and we provide a comprehensive global system of support to help them do so. There are a range of initiatives that enhance UK exporting, including our international export hubs, the £38 million internationalisation fund providing grants, and UK Export Finance’s general export facility, another new initiative, all of which combine to help upskill firms, build their capability and finance everyday costs.
The simple answer is for them to go to gov.uk/growbyexports. There are educational masterclasses, meet the buyer events and the opportunity to send samples of their products to overseas buyers in specially selected hampers. Those are just some of the activities open to Hampshire businesses.
Is not it fantastic to hear that genuine enthusiasm for business, jobs and the prosperity that results? What a shame we do not hear it from the Opposition. I know that my right hon. Friend the Secretary of State enjoyed her visit to Marrose Abrasives, and there are many opportunities before our negotiations with New Zealand, Australia and the United States. We have conducted public consultations. We have trade advisory groups, so through representative organisations and others, we are open every day to hear from businesses such as Marrose and make sure that their voice is heard and drives our trade policy objectives.
SMEs are vital to increasing UK trade, which is why we are seeking SME chapters in all our free trade agreements, and we provide a vast range of support for them. I congratulate my hon. Friend on being a trailblazer for the parliamentary export programme, and I encourage businesspeople in the Vale of Clwyd to attend the virtual meetings that he is organising, chairing and using to ensure that his local companies get all the international sales support that Government can offer.
(3 years, 7 months ago)
Written StatementsUK Export Finance is seeking a repayable cash advance from the Contingencies Fund of £500,000. The requirement has arisen due to an urgent need to refresh its existing IT equipment (laptops) to meet the needs of the Department and manage its response to covid-19.
Parliamentary approval for additional capital of £500,000 will be sought in a supplementary estimate for UK Export Finance. Pending that approval, urgent expenditure estimated at £500,000 will be met by repayable cash advances from the Contingencies Fund.
The cash advance will be repaid upon receiving Royal Assent on the Supply and Appropriation Bill.
[HCWS737]
(3 years, 7 months ago)
Commons ChamberThe DIT’s inward investment goal is to maintain the UK’s position as the No. 1 holder of foreign investment in Europe. That is why I am delighted to say that, according to the latest Office for National Statistics figures, the UK’s inward foreign direct investment stock stood at £1.6 trillion at the end of 2019. According to the United Nations Conference on Trade and Development—the global equivalent of the ONS—the UK maintained its No. 1 status for FDI stock in Europe at the end of that year.
What steps is the Minister taking to ensure that inward investment supports the levelling up of areas such as Bassetlaw?
What an excellent question. My Department is committed to ensuring that exports and investment bolster our levelling-up agenda. That is why we operate a key account management programme, to support existing investors in priority levelling-up areas. D2N2 LEP—it sounds like something from “Star Trek”, but it is my hon. Friend’s local enterprise partnership—is currently receiving funding under that programme to identify foreign owned companies across the LEP area, including in Bassetlaw, which can be assisted with growth plans precisely to retain an increased number of jobs. Since March, we have also placed seven new officers in key markets overseas, who are specifically tasked with promoting investment opportunities in the midlands, not least in Bassetlaw.
I thank the distinguished trade envoy for his excellent question. My Department is turbo-charging efforts to help northern businesses take advantage of our trade deals and ensure that the benefits of FTAs are shared across the United Kingdom. Since March we have recruited an additional 30 international trade advisers, and 14 overseas representatives just for the northern powerhouse. We founded the Export Academy, equipping northern businesses with the knowledge, skills and tools that they need to create an export plan and, more importantly, to implement it. Since 2016, the DIT northern powerhouse team has led 83 trade missions to 23 countries, supporting 1,638 companies. My hon. Friend will be pleased to hear that covid-19 has not stopped us, and that 272 northern companies have benefited from nine virtual missions that the northern powerhouse team has delivered since April 2020. Five further such missions are planned for delivery by the end of March 2021.
I am delighted to have recently joined the parliamentary export programme, which is a DIT-led initiative that focuses on promoting international trade. Fylde, just like Chorley, is home to numerous SMEs that currently do not export their goods and services, but would be well placed to do so. What support and advice will be made available to businesses that are looking to begin exporting and play their part in post-Brexit, global Britain?
I warmly welcome my hon. Friend to the parliamentary export programme and thank him for all he is doing for businesses in Fylde. In addition to the support I just outlined, I launched the export growth plan in October, with a £38 million internationalisation fund to provide grants for businesses to export. In December, I launched the UK Export Finance general export facility, providing working capital to exporting SMEs—the first product of its kind and available from all the major banks. In 2019, we were the only top 10 exporting country in the world to grow exports. All I can say is that we do not plan to let up.
We are determined that all regions of the United Kingdom should benefit from free trade agreements. Our English network of international trade advisers includes 30 giving export support in the south-east of England, all of whom have been trained to help companies take advantage of FTAs. We have a range of online resources, including country-by-country guides and tools on great.gov.uk such as “Find an online marketplace” and “Find export opportunities”, in addition to the wide range of webinars that the Department provides.
The Coast to Capital local enterprise partnership is soon to submit a freeport bid for the Manor Royal industrial area south of Gatwick airport. May I have an assurance from my hon. Friend that he will liaise with our right hon. Friend the Chancellor of the Exchequer in support of this excellent initiative?
I would not want to tread on my hon. Friend’s toes. As he understands, the selection process is ongoing and it will be decided by the Treasury, but obviously we are working very closely with the Chancellor and the Treasury team, precisely to ensure that the opportunities for freeports are assigned to the best possible places and that all the benefits that they can bring are realised, for the benefit of constituents such as my hon. Friend’s.
The latest data gathered from a survey by the British Educational Suppliers Association indicates that UK EdTech exports are worth £170 million a year. That is expected to increase in light of the pandemic, which has lifted demand for EdTech products and services. The UK is well placed to take advantage of this trend as the fourth largest market globally. More important than the market value is the difference that good educational technology can make.
My hon. Friend will recall that, when we worked together on the international education strategy, EdTech was a key export growth area—and that was before, as he mentions, the focus that the pandemic put on its role. What can be done across Government to maximise the export potential of EdTech for the future?
My right hon. Friend is quite right. It was in his time as Secretary of State for Education that we built much closer ties between our Departments to make sure we could promote educational exports. He is also right to highlight the pandemic’s impact on EdTech. We are working with BESA, the British Educational Suppliers Association, and the Department for Education, his old Department, on a major EdTech event this month, which will connect companies with overseas buyers.
More activity is planned for later in the year in several key markets, supported by the international trade champion, Sir Steve Smith. That post, of course, came out of the work that my right hon. Friend did to develop the international education strategy. He will be pleased to know that we will soon be launching a refreshed international education strategy, in collaboration with the Department for Education and with the support of other Government Departments, that includes provisions to maximise EdTech’s export potential.
No one in this House has done more than my hon Friend to champion the English language sector under the pressures of covid. I congratulate her on today’s question and on the debate that she led in, I think, July, to which I had the honour of replying.
We are determined to champion the interests of the English language sector. That is why it is a key member of the education sector advisory group, which I co-chair with my hon. Friend the Minister for Universities. We are determined across Government to ensure that it can access Government schemes for support. My hon. Friend is also right to say that we should look ahead, and that is why we have produced an enterprise management incentive suppliers catalogue for China and are working to replicate that for growing markets such as Indonesia and Brazil. We have to help those businesses to survive today, and we have to put in place support for the future so that they can grow once again and be such an important part of our education sector and, indeed, our wider cultural offer to the world.
My hon. Friend is right to advocate so passionately on behalf of his constituents, particularly those who need that opportunity and that levelling up. This is precisely what the levelling-up agenda and the freeport programme are about, and we are determined that the benefits of our free trade agenda should be shared right across the country, including in Ipswich. Freeports will attract new investors and drive trade and exports, all of which will help to regenerate communities across the UK, through high-skilled jobs and new infrastructure. It is so important that we work together as a House to champion business and jobs. Forget there being a division in the Labour party, its Front-Bench International Trade team could not—
Order, Mr Stuart. This questions session has not been good, because I am beginning to worry that we have very good answers to those on one side of the Chamber but the answers to those on the other mean that they are not getting the respect they deserve. In fact, on one occasion we had, “No, it is not our responsibility”, but then suddenly when another Member asked, we had, “It is our responsibility”. I want us to be concise in our treatment and the way we deal with all Members of this House. They are representing constituencies, and I expect them to get full and thorough answers, and not the political games, on all sides, that seem to be being played.
(3 years, 9 months ago)
Commons ChamberLatest Office for National Statistics figures report that the UK’s inward foreign direct investment stock reached £1.5 trillion in 2018—a new record. According to the United Nations conference on trade and development, the UK held the highest FDI stock in Europe in 2019. The Financial Times FDI report highlights that last year the UK had more greenfield FDI projects than any other country in Europe at 1,271; by comparison, Germany had 702 and Spain 658. We are looking to go even further to improve our high value investment offer, which is why the Prime Minister launched the Office for Investment just last week.
I congratulate the Minister on the impressive inward investment results so far. What is he doing to boost investment and broader trading relationships between the UK and the Asia-Pacific region and, in particular, those with Pakistan, which is of interest to a number of businesses in my constituency?
There can be no greater or more persistent champion of UK-Pakistan relations than my hon. Friend. The Government remain committed to increasing trade and investment with the Asia-Pacific region. We have signed a free trade agreement with Japan, are negotiating FTAs with Australia and New Zealand and hope to be able to apply for formal accession to the comprehensive and progressive agreement for trans-Pacific partnership, as already discussed. At the end of the transition period, the UK will put in place its own generalised scheme of preferences, and my hon. Friend will be delighted to learn that Pakistan will continue to receive the same market access to the UK next year. The scheme will help British and Pakistani businesses to continue trading seamlessly after we end the transition period.
I talk regularly with businesses, business representatives, and ministerial colleagues about how we can make exporting easier for businesses across the country. That is why I was delighted to announce our new Scottish trade hub in September, which is staffed by expert trade advisers and dedicated to helping Scottish firms to grow internationally. I am pleased to say that our work to reduce barriers to trade and increase exports is paying off; the UK overtook France in 2019 to become the world’s fifth-largest exporting nation. All nine of the other 10 largest exporting nations in the world saw their exports fall last year, according to UNCTAD, the United Nations Conference on Trade and Development—the exception was the UK.
Around 250,000 businesses export to the EU and not to the rest of the world. Many of them are small, not VAT-registered and difficult to reach, and to continue to trade they will need to go through a long and tedious process to acquire an economic operator registration and identification number. As the party that wants to reduce red tape, what action are the Government taking to reduce the administrative burden to ensure that SMEs can continue, or start, to export into Europe but do not suffer disproportionately from a madcap Brexit?
We are working to engage with businesses, and I recommend that all businesses that have not done so go to gov.uk/transition and look at the practical steps they need to take to prepare for the end of the transition period. From my engagements with Scottish businesses, though, it is clear to me that it is the relentless pursuit of Scottish independence, rather than the support for Scottish business, that they find the concern. I want to ensure, by using the power of the Union and our global reach, that we can boost Scottish business; otherwise, if follow the path of independence, we know that would lead to a shrinking of Scottish business and a loss of opportunity for Scottish people.
Rod McKenzie, the Road Haulage Association’s policy director, gave evidence to the Scottish Parliament in which he highlighted a no-deal Brexit scenario in which lorry drivers would be forced to rely on European Conference of Ministers of Transport permits, of which the UK has been allocated around 4,000, despite more than 40,000 being required. In effect, that would stop the best part of 90% of companies trading with Europe. What assurances can the Minister give today that traders and hauliers will experience minimal disruption?
As the hon. Gentleman knows, we have been working flat out to engage with businesses, to provide easements on the customs regime up to July next year and to make sure that we minimise the challenges as we end the transition period. Of course, the issue that Scottish businesses raise with me is that the biggest threat to their trade is not any friction as we move to the new settlement on the EU border, but the fact that 60% of all Scottish exports go to England, Wales and Northern Ireland—more than to the rest of the world combined. It is that, and the threat that the hon. Gentleman poses to Scottish business in that way, that really worries them for the long term.
The Department for International Trade is working closely with Her Majesty’s Revenue and Customs and others to ensure that businesses are prepared for 1 January. We have delivered specialist webinars and support tools to ensure that industry understands the changes required to keep trading effectively with the EU as well as to start trading under preferential conditions, such as those with Japan. Looking forward, we are aiming to produce the world’s most effective border by 2025, simplifying and digitising border processes so that exporters across the country will be able to sell their products around the world more easily once our free trade agreements are agreed and in place.
A report published this month by the National Audit Office estimates that the number of HM Revenue and Customs declarations that will need to be processed from 1 January will increase from the current annual volume of 55 million to 270 million. That is a huge increase. What discussions is the Department having with other Departments to ensure that this huge increase in the administrative burden does not discourage exports to Europe and the world?
The hon. and learned Lady is quite right; there are a lot of challenges. That is why, across Government, we have been making such an effort to work with other Departments to make sure that we do everything possible to inform business and to facilitate the border, including investing hundreds of millions of pounds in improving customs processes and others.
What an excellent question. It is the reach, power and financial heft of this United Kingdom that has allowed us to be the only top 10 global exporter to increase exports last year and allowed us to attract more foreign direct investment than any other country in Europe. Shorn of the UK’s assets, businesses—and, more importantly, workers—in places like Scotland would be impoverished as a result. We seek to ensure that we use every part of the power of this United Kingdom to support jobs and investment in Scotland, Wales, Northern Ireland and the rest of the United Kingdom.
(3 years, 10 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Common Rules for Exports (EU Exit) Regulations 2020.
It is a pleasure to serve under your chairmanship, Mr Gray, and I thank colleagues for attending. I hope that they will be unanimous in support of the regulations and their objective. The regulations were laid before this House on 21 September, and are made under powers in the European Union (Withdrawal) Act 2018, to which I will refer as “the Act”. The Committee will be aware that, given the context, those powers are strictly limited. All that they allow is the correction of technical deficiencies in existing EU law that, by the operation of the Act, are to be retained in United Kingdom domestic law following withdrawal from the European Union.
The regulations correct those deficiencies by, for example, replacing references to the European Union, its institutions and legislation with the appropriate United Kingdom references. The retained EU regulation, as amended by the regulations, lays down the basic principle that exports from Great Britain will not be subject to any quantitative restrictions unless the restrictions are applied in conformity with the retained EU regulation. The new legal regime makes clear what the purpose of any export restriction should be. In general, export restrictions may only be used either where there is a risk of a critical situation arising on account of a shortage of essential products or in order to remedy such a situation or where such a measure is needed to fulfil international undertakings entered into by the United Kingdom.
Throughout the year, we have seen the use of export restrictions on medical goods grow around the world in response to shortages arising during the fight against covid-19. Indeed, the European Commission used the EU regulation in March in response to shortages of personal protective equipment. Under this EU regulation, the United Kingdom was required temporarily to authorise any exports of PPE, following a review of licence applications from exporters. In the vast majority of cases, the United Kingdom authorised those exports.
Although export restrictions can be appropriate in dealing with critical situations in the short term, the restrictions that have built up around the world have disrupted the normal flow of trade and exacerbated the efforts of many countries to combat the global pandemic. The Government have made it clear that countries should limit their use of export restrictions as far as possible. In May, the United Kingdom joined calls for the use of export restrictions to be restricted, and applied only where deemed completely necessary in a targeted, proportionate, transparent and time-limited way. By applying strict conditions to the use of any export restriction, this legal regime sends a clear signal to our trade partners around the world that, despite the pandemic, the United Kingdom remains open for business.
I also want to underline, for the benefit of the Committee, the fact that the Government do not need to implement export restrictions pursuant to the United Kingdom’s international obligations by making regulations under the retained EU regulation as amended by this statutory instrument. Other more specific legislation provides the appropriate powers with which to do that. For example, restrictions that apply to exports of arms are provided for under the well-established statutory regime under the Export Control Act 2002. In addition, article 10 of the retained EU regulation does not preclude the use of export restrictions where that is required for the purposes of public policy.
For the benefit of the Committee, may I point to role that Parliament will play in overseeing any measures that are put into effect under the EU regulation, as amended by the regulations, which is clearly set out in Article 7A? That explains that any such measures must be contained within a statutory instrument and describes the nature of parliamentary involvement where Parliament can annul measures in some circumstances and can vote on the regulations in others.
This statutory instrument is subject to the affirmative resolution procedure because it transfers to the Secretary of State a power to legislate that currently sits with the European Commission, namely the power to put export restrictions into effect in Great Britain in certain circumstances. I commend the regulations to the Committee.
I am grateful to the hon. Member for Sefton Central for his contribution. In so far as that was a shift in Her Majesty’s Opposition in support of unfettered trade, I welcome that change in direction.
Well, I am welcoming a more moderate direction, and if that stretched all the way to the shadow Secretary of State, that would be good. I am breaking the golden rule of a Minister taking through an SI which is not to unnecessarily and needlessly provoke the Opposition. I am failing on lesson one at the start of my response.
The hon. Gentleman mentioned over-dependence on imports; we believe in diversity of supply rather than that there can be an over-dependence on imports. We believe in free and open trade, and I hope that the hon. Gentleman’s opening remarks are not negated by his other comments.
On the negligible impact on trade of goods from Northern Ireland, article 6 of the Northern Ireland protocol states that there can be no fetter on the movement of goods between Northern Ireland and Great Britain, excepting under international obligations. After assiduous research, which is typical of the hon. Gentleman, he has identified the issue of endangered animals, but no such international obligations are currently in place, and if they were, the UK Government would seek to implement them along with the EU. We do not expect any change from the current position.
As to the manner in which changes are to be made, the Secretary of State has the authority to implement article 5 powers, which relate to an urgent situation such as we saw earlier this year. I know that the hon. Gentleman would fully support that. The Secretary of State would exercise those powers on the basis that either House could annul any such measure simply by passing a motion against the use of that power. In any case, those emergency powers would last at most for six weeks. I hope that he accepts that that represents a proportionate and sensible response to an urgent situation.
I am grateful for that helpful explanation, but perhaps I can pick up the point about information that would be in the public domain to enable Members of either House to make informed decisions. Hopefully, we would avoid getting to the point where either House might want to annul such a measure.
Information on the powers and the actions that are taken would be publicly available alongside other information, the precise extent of which I am not currently in a position to share. The measures will be shared with Parliament and it will be possible, as I have said, to annul them if either House is not happy with them. Under powers under article 6, there are no time limits set, unlike the six-week maximum under article 5, but those powers are subject to an affirmative SI. If something is introduced for the longer term, it will have to come before a Committee of the House, such as this one, and be passed that way.
I think I have pretty much covered all the issues raised. I cannot give the specifics as I do not have them, but the information will be provided when the measure comes before the House, which will be able to verify it, look at it and make a decision. I hope that satisfies the hon. Gentleman that it will be an open process. As I have said, the regulations introduce a technical change, merely to bring into UK law that which subsists under European law.
Question put and agreed to.
9.42 am
Committee rose.