Oral Answers to Questions

Greg Hands Excerpts

Thursday 11th January 2018 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

8. What steps his Department is taking to support exports by small and medium-sized businesses.

[The Minister for Trade Policy (Greg Hands)]

We have three main ways to support exports by SMEs. First, the great.gov.uk website offers digital tools, and has had more than 2.7 million visitors; secondly, international trade advisers based across England are supporting businesses; and thirdly, UK Export Finance has provided £3 billion in support. Last year it helped 221 UK companies, 79% of which were SMEs.

[Iain Stewart]

I am grateful for that answer. An additional hurdle faced by many SMEs in growing their exports is obtaining affordable political risk insurance. What steps can the Minister’s Department take to help in that matter?

[Greg Hands]

My hon. Friend asks a good and pertinent question, and that is why UK Export Finance is working to ensure that SMEs can access the insurance that they need to export and invest overseas with confidence. Last year we launched an enhanced overseas investment insurance product to protect UK businesses against political risk when investing abroad, and I strongly recommend that product to companies in my hon. Friend’s Milton Keynes constituency.

[James Morris]

There has been a significant revival of small and medium-sized manufacturing in the Black country over the past two or three years, so does the Minister agree that we need to do all we can to support those small and medium-sized manufacturing companies in the Black country to access markets around the world with development potential?

[Greg Hands]

My hon. Friend makes a good, strong, pertinent point, which applies not just in the Black country but throughout the country. We have our export strategy, which will be reporting in the spring. I remind the House of our fantastic manufacturing figures—record growth in output, the highest in 10 years, growing 4% year on year according to new data just out. Confidence in manufacturing is at its highest in four years, according to the EEF.

[Peter Grant (Glenrothes) (SNP)]

There is a very close relationship between small and medium-sized manufacturers’ success in exporting and the viability of small and medium-sized road hauliers, many of whom are seriously concerned at the possibility of incurring substantial additional costs and facing additional bureaucracy if we cannot get an agreement that, for example, driving licences issued in the UK will be recognised in other countries when we leave the EU. What progress has been made in ensuring cast-iron guarantees that small road hauliers will not face any additional burdens in exporting to the EU after Brexit?

[Greg Hands]

As my right hon. Friend the Secretary of State has pointed out, we are seeking a barrier-free, frictionless trading arrangement with the European Union as we leave. May I point out that the hon. Gentleman is seeking to put in place the potential for barriers between Scotland and the rest of the United Kingdom? Sixty-four per cent. of Scottish exports go to the rest of the UK, compared with just 15% to the rest of the Union.

[Jim Shannon (Strangford) (DUP)]

Many SMEs have identified external and internal finances as well as a lack of awareness of the support available to them as barriers to entering the export market. Will the Minister ensure that those concerns are addressed in the Government’s review of the export strategy?

[Greg Hands]

The hon. Gentleman makes a good point, and that is certainly very much part of the export strategy. I remind him and the whole House of some of the work we have been doing to ensure that finance is more accessible. We signed agreements in July 2016 and July 2017 with the leading UK banks to ensure that their SME customers can access finance more easily and that UK Export Finance assistance in particular is directly available.

[Afzal Khan (Manchester, Gorton) (Lab)]

5. What assessment he has made of the implications for his Department's policies of the joint declaration of 8 December 2017 on maintaining full regulatory alignment between the EU and the UK.

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[Jeremy Quin (Horsham) (Con)]

7. What assessment he has made of the potential effect of trade deals between the UK and developing countries on the economies of those countries.

[The Minister for Trade Policy (Greg Hands)]

The UK is proudly spending 0.7% of gross national income on overseas development assistance—the first G7 country to honour its promise to do so. We are also committed to ensuring that developing countries can use trade as an engine of poverty reduction, and trade agreements play an important role in that. Our priority is to ensure that developing countries maintain their preferential access to the UK market as we leave the EU.

[Jeremy Quin]

But I also recognise the wisdom of the Minister’s answer, Mr Speaker, and I am grateful for it. I share his aspirations. Will he please remind the House what he will do to give those aspirations legislative effect?

[Greg Hands]

The Taxation (Cross-border Trade) Bill, which had its Second Reading on Monday, provides exactly for the scheme of preferences to be taken across into UK law. I find it extraordinary that the Opposition parties voted against it. They voted against the UK having its own trade preferences scheme for developing countries. That is a disgrace. I very much hope that they will reconsider their position as the Bill passes through the House of Commons.

[Christian Matheson (City of Chester) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T4. What practical steps is my right hon. Friend’s Department taking to increase capacity in developing countries to trade their way to sustainable growth?

[The Minister for Trade Policy (Greg Hands)]

Assisting trade capability in the developing world is one of the key parts of our official development assistance strategy, launched by the Department for International Development last year. In Buenos Aires last month the Secretary of State and I announced a big increase in funding for the WTO’s enhanced integrated framework, which does precisely that, making the UK the largest donor to that WTO fund.

[Barry Gardiner (Brent North) (Lab)]

The steel industry has repeatedly complained that the Government are not prepared to impose penalties on exports from countries with significant market distortions. America is clear, having imposed penalties on China under section 232, and the EU is clear, having recently voted to pass new anti-dumping rules, but the Secretary of State has constantly ducked the issue and refused to say what his Department will do after we leave the EU. When will he give the steel industry a straight answer?

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[Martin Vickers (Cleethorpes) (Con)]

Last month, I welcomed a delegation from Taiwan to my constituency, where we met representatives of the offshore renewables sector and the seafood sector. Will Ministers work with me and with local businesses to ensure that we maximise our exports to that growing market?

[Greg Hands]

Last month, I chaired the second of our joint economic and trade committee talks with Taiwan, and I can tell my hon. Friend that renewable energy was right at the heart of those talks. The UK has the highest capacity market anywhere in the world for offshore wind, and that is of strong interest to the Taiwanese authorities. Those discussions are ongoing.

[Several hon. Members rose—]