UK Trade & Investment

Jim Shannon Excerpts

Tuesday 19th March 2013 Westminster Hall

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

There is nothing more important than exports. The House constantly debates and argues over how to slice the cake—there are huge areas of difference between Opposition and Government Members—to provide for all the public services that we want to support, yet exports are about increasing revenue as a whole for the country and making that cake bigger. I am extremely disappointed that no Labour Back Benchers are present for the debate, but that is typical of debates on exports. They also table few written questions on this critical subject, so they clearly are not interested in engaging with it. I hope that the shadow Minister, the hon. Member for Wrexham (Ian Lucas), will take a message to his parliamentary party about the importance of engaging in such debates so that we can work constructively together, across parties, on this critical issue.

My office and I have spent the previous few months interviewing people from hundreds of SMEs from all over the UK, who have come to the House of Commons to give us their experiences—good and bad—of UKTI. We presented our preliminary results at a meeting with the Prime Minister and the Chancellor of the Exchequer. I have repeatedly lobbied the Chancellor on the issue, and I very much hope that some movement, or some additional support for UKTI, will be spoken about on Wednesday.

During my interviews, I have got to know Mr Nick Baird, the chief executive of UKTI, who I think is doing a very good job, and I want to put on record my thanks to him for his professional leadership of the organisation. I am, however, disappointed that a number of companies that I have met have failed to get the support that they require from UKTI, so I have started to take them to Mr Baird to allow him to engage directly with them and provide support. Some of the companies are talking about hundreds of millions of pounds of investment into the United Kingdom, so that is very important.

I shall mention briefly, as I have to be very brief, three key recommendations that I would like the Minister to take on board, with which, by the way, Mr Baird agrees. The first is about the structure of UKTI. At the moment, personnel report into different Departments, including the Foreign and Commonwealth Office and the Department for Business, Innovation and Skills, and sometimes to local ambassadors. What we want in the United Kingdom is one organisation that is fit for purpose, with reporting taking place directly to UKTI’s board and its chief executive. We want an organisation that can hire, fire and reward on the grounds of performance and on a commercial basis. We want to encourage people in UKTI to go the extra mile and strive to do everything possible to help British businesses to export. Regrettably, the support is rather patchy; in some parts of the world it is superb, but in others it is poor. We therefore want a common theme across the world and a common reporting structure.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Daniel Kawczynski]

No, I will not. I am sorry, but I do not have time.

My second point is about funding. Only 0.005% of Government spend goes to UKTI, and I am concerned that we will fall behind Scottish Development International, for example. That body receives far more pro rata, given the number of companies in Scotland, so it is able better to support its companies.

There is only a 49% awareness of UKTI among SMEs, and it is important that the body gets more funding from the Chancellor so that the message about what it can do for those companies throughout the world is better understood. My hon. Friend the Member for Enfield North (Nick de Bois) made the superb point that for every £1 spent, UKTI generates £22 of revenue. If I was the Chancellor of the Exchequer, my No. 1 priority would be to give UKTI more money.

My third point is that we need greater parliamentary scrutiny of UKTI. I am having to condense a 25-minute speech into five minutes, and this is only the second debate that has been held on UKTI in the past 12 months. This is a ridiculous way of scrutinising one of our country’s most important bodies. I want ongoing parliamentary scrutiny, and even—dare I say it—a Select Committee that can interact with Ministers and the UKTI chief executive on a daily, weekly, monthly and yearly basis, and hold them to account about specific countries and projects so that we are always scrutinising how taxpayers’ money is spent. When that parliamentary scrutiny takes place, we will be able to say to the Chancellor of the Exchequer, “Look at what UKTI is doing. Look how things are improving. Give it more money,” and I cannot overemphasise the importance of that. I desperately want to work with colleagues to convince the Chancellor and the Prime Minister to give us a Select Committee of the House of Commons to allow those of us who are passionate about exports to work together constructively to hold UKTI to account.

Some 45 UKTI staff work in Brazil, but 52 opportunities are listed on the website. The website is not properly maintained, and no opportunities are listed for a huge number of countries. We might not be surprised that that is the case for some obscure, small countries, such as Cape Verde and Mauritania, but there are many larger countries that have no opportunities listed against them. If we are going to have a website and to communicate with SMEs up and down the country, we need always to be harvesting opportunities across the world and putting them on that site. We must ensure that information is disseminated daily to all nine regions in England, and that those regions then interact with their SMEs to find out which can best be tailored to each opportunity.

Whenever I have travelled abroad, I have noted that the most important thing to remember, as my hon. Friend the Member for Enfield North mentioned, is branding. The British brand is the gold standard. It is the best in the world, so many people across the middle east, and in the rest of the world, yearn to buy British. Give us an opportunity here in the Commons to scrutinise UKTI on an ongoing basis, and give us a Select Committee.

--- Later in debate ---

[Charles Hendry (Wealden) (Con)]

I put on record my interests as the Prime Minister’s trade envoy to Azerbaijan, Kazakhstan and Turkmenistan, and as the chairman of the advisory board of the Russo-British chamber of commerce.

I congratulate my hon. Friend the Member for Enfield North (Nick de Bois) on securing the debate. He was absolutely right to say that our future recovery lies not within the eurozone, but outside it. We must focus much more on countries where there are tremendous opportunities that we are often missing. From my experience of visiting them as a Minister and subsequently, such countries want to trade with Britain. The door is open, and the question we are most often asked is, “Why don’t we see more of you?” I am delighted at the work being done by the Foreign Office and UKTI teams to try to ensure that we are in a strong position to do that.

There are very exciting developments in Russia, with which our trade has doubled in the past three years. It has moved from being our 19th biggest trading partner to being as large as our 11th biggest, which is a huge improvement in activity. We want such an approach to be replicated in many other countries.

I welcome the approach taken by the Minister for Trade and Investment, my noble Friend Lord Green, towards developing links with chambers of commerce. They are well established in their countries, where they are well known to their Governments, and they understand those countries well. It is much better to develop those relations than to put in place a new structure.

Chambers of commerce are also well positioned to ensure that we go beyond the few cities that trade delegations usually visit. In Russia, there will be delegations to Moscow and St Petersburg, but there are exciting new opportunities and a real enthusiasm for doing business in Kazan in Tatarstan, and chambers of commerce should be our natural allies in making things happen.

At the end of last year, the Prime Minister appointed seven of us as trade envoys to some of the fast-developing markets, which are exactly the sort of markets that my hon. Friend the Member for Enfield North spoke about. We should recognise the extraordinary personal contribution that the Prime Minister is making in that area, with the success of his trade missions and his determination to get out there and win opportunities for British companies right around the world.

The role of trade envoys is to give an extra level of support, working alongside the FCO and UKTI. It is to focus purely on trade, not politics or diplomacy, and on taking that contact forward to a deeper and broader level of engagement. In the three countries in which I work, there are tens of billions of pounds of British investment in the oil and gas sector, and companies such as Shell, BP and BG have enormous departments that focus on improving such links. My focus therefore needs to be not only on working with them, but on seeing how to secure opportunities for the supply chain and service companies, of which Britain has some of the finest in the world.

[Jim Shannon]

The effectiveness of businesses is measured by export contracts. Does the hon. Gentleman think that we should do more for our skills and people skills in construction, for instance, so that people are able to go overseas to help companies to build?

[Charles Hendry]

The hon. Gentleman is absolutely right that we have world-class skills in that sector. I find that people saw what happened in Britain in 2012, when we delivered the most successful Olympic games ever, and know that those involved often have a tremendous amount to offer to countries with big ambitions in such areas.

The Asian games are in Ashgabat in 2017, the European games are in Baku in 2015 and the Expo is in Astana in 2017. In all those areas, we are introducing British architects, engineers and construction companies—working alongside other partners—to ensure that they have the chance to compete. The issue is not only about the big companies, because my hon. Friend the Member for Enfield North is completely right that it is also about SMEs. On the recent mission that I undertook to Turkmenistan, the majority of companies were SMEs with expertise in the sports sector that saw how they could work alongside others and realise the potential of the 2017 games.

We also have opportunities to attract more investment into the United Kingdom. These countries all have significant sovereign wealth funds. We can highlight the opportunities for them to invest in British businesses and infrastructure, and they should become our natural partners as we take that forward.

I believe that what really makes a difference is the relationship between trade envoys, and the Foreign Office and UKTI. We have excellent missions and ambassadors in those countries, but we also have outstanding UKTI representatives who are focused on understanding those markets and realising the opportunities. That means that we host good round tables to bring together a range of companies that are interested in investing here. For companies that are looking for where to export next, but are anxious about going to markets that are distant and new, we can help to make the process much easier.

I very much welcome the debate. Above all, the key message is that countries throughout the world that want to trade with Britain need to see us more. I am delighted that we have such an energetic Minister in post, because I know that he is tireless in taking that forward.