British Exports

Debate between Julian Sturdy and Laura Sandys

Wednesday 8th February 2012 Westminster Hall

[Laura Sandys (South Thanet) (Con)]

I thank my hon. Friend the Member for Macclesfield (David Rutley) for securing this extremely important and prescient debate. In many ways, we will have a challenging time over the next 10 years generating growth domestically in the UK and across the eurozone. Our international trade and inward investment—the responsibility of UKTI—will be crucial in ensuring that we keep ahead of the game and deliver growth for the UK.

My experience is pretty varied. In many ways, I was a very small exporter. I have worked for the Peruvian Government and the Georgian Government, and I had an office in Istanbul. I also did quite a lot of work in Africa and central Asia. I have therefore seen a lot of these issues from the UK, the intrepid traveller and the travelling salesman perspective, arriving in a country and not necessarily knowing who the key players were or how to make things happen.

If we are to support the system, there are probably three big challenges that need to be met by the Government, as well as by large exporters, as my hon. Friend the Member for Enfield North (Nick de Bois) rightly said. One is getting more SMEs to think about exporting. The initiative developed by Lord Green and my hon. Friend the Member for Stourbridge (Margot James), which sees us, as constituency MPs, generating interest in exports, is crucial.

There is, however, something interesting about how we look at exporting, particularly in relation to SMEs. Everybody I speak to says they are going to do an export mission and to take people out to country X, Y or Z. Very few people say that the most important thing for an SME is not going abroad, but having the first sale abroad or the first inquiry from somebody who is quite interested in their product. The internet is a big platform for that. I spoke to UKTI on Monday, and I was a little concerned that it was not looking at helping SMEs to translate one or two of their webpages into two or three different languages. That is very simple; people do not need to get on a plane or to do market testing. SMEs could also put their price list into euros and include export duties for three or four different markets that might be useful for their product. We can do a lot without getting the SMEs to take that leap of faith—to jump on that plane or pay UKTI to organise an event.

The other issue with it, which people, and particularly Government, do not understand about small businesses, is that time is money. If I have to spend three or four days in a market where I do not know anybody and I do not know whether it will be successful and I have three or four customers back in the UK or in Ireland, where will I put my focus? Let us start helping these smaller companies market-test. The internet is a good way. There are brochures and there are different ways of us doing this, but let us not always think that we have to send people out for those initial stages.

[Julian Sturdy (York Outer) (Con)]

My hon. Friend is making a powerful point, but we do have to send people out to these developing countries at certain times. If we are going to capitalise on the BRIC countries and some of the other developing markets that people have talked about, must we not improve our aviation links? If we do not, there is a danger that we will lose out to central Europe on this.

[Laura Sandys]

My hon. Friend has a good point. Of course one has to encourage people to go abroad. One also has to encourage them to understand how these countries work in terms of culture and not just language. Experience in these countries is crucial. My hon. Friend’s point about aviation is well made and has been made particularly in relation to China, where we do not have those links and where we have to go to Europe to access some of those growing markets.

The second point I want to make is about the cultural side. I cannot emphasise it enough: there are 220 languages already spoken in this country. People already have these links. In this country, there are small and medium-sized companies that are run by people who have cousins, relatives, uncles and aunts who have equivalent companies in the countries of their origin. We are not using that. We are trying to expend a lot of money teaching a lot of fantastically able Foreign Office officials lots of different languages, but we already have the languages in this country and we have the business communications. Having been in small business myself, I know that small businesses have a similar language around the world. I would possibly find it easier to talk to a small business in China than a scientist in England. We understand each other; we have the same rhythm. Please, let us use the assets that we have.

The third point, which in many ways has been covered by my hon. Friend the Member for Enfield North, but which is also crucial, is: are we incentivising large exporters to bring their supply chain with them? That is not just on trips, but as part of the overall offering. In many ways, it is a little bit of a waste of our resources when we have big trade missions and we take Rolls-Royce and BAE Systems and all these fantastic companies. They can afford the air fare. They already have operations based in these countries. If they led a trade mission that had their full supply chain and their full level of SMEs and medium-sized manufacturers, I can see why we would be doing it. We have, however, to start focusing on delivering, as the Germans do, in that middle market of entrepreneurs, giving them the confidence, ensuring that we are out there making the business contacts and securing the confidence that those SMEs need, because they are our best advert for recruiting new SMEs.

I welcome what the Government are doing. There is a new emphasis and a new impetus, but let us use the assets that we have and let us get out there and sell and know that selling is a grubby, but very important and worthy business. Sometimes Governments do not necessarily enjoy getting involved at that sharp end.

Food Prices and Food Poverty

Debate between Julian Sturdy and Laura Sandys

Monday 23rd January 2012 Commons Chamber

[Laura Sandys (South Thanet) (Con)]

I must now declare an interest in the organisation called Ugly Food that I have established. I believe that it is open to all small producers to market their foods with new branding and a new logo.

Perhaps I am looking at these matters non-politically, and perhaps I am looking too far into the future, but I think that we have a real problem. We talk about cheap food, but we are not always going to be able to deliver cheap food. We will have been deluding our constituents by suggesting that it will be available in the longer term, unless someone comes up with the answers to climate change, increased calorific intake and population growth. If we are to be responsible and live in the real world, we must try to deliver a system in which the cost of feeding one’s family healthily and effectively does not go up in price, but that is fundamentally different from talking about cheap food.

The food system in this country has been distorted by the very cheapness of the products. Food here is cheaper than in any other country in Europe and, as a result, we have seen a much steeper price hike in recent years than the rest of Europe. That price hike has been compounded by two fundamental aspects of our food chain. We import much more than any other OECD country, and we eat much more processed food, which is highly energy intensive and labour intensive. A further anomaly is that, although this country’s supply chain is supremely efficient, it is not very resilient. As a result, we face greater price fluctuations and volatility when shocks to the system occur.

[Julian Sturdy (York Outer) (Con)]

I draw Members’ attention to my declaration of interest. My hon. Friend is right to say that food prices will continue to rise, and that that will be a problem. Is it not the case, however, that one way of tackling that would be to tackle food waste? Should we not also examine the new technology that could really move agriculture forward, not only in the UK but around the world?

[Laura Sandys]

I totally agree with my hon. Friend. It is pretty frightening that wheat yields in this country have not increased at all over the past 20 years. Also, because food has been so cheap in this country, we have not valued it. As a result, there is a huge amount of waste in the system.

It is interesting that the Opposition have chosen this subject for debate, because you left this country very vulnerable—

Oral Answers to Questions

Debate between Julian Sturdy and Laura Sandys

Thursday 16th September 2010 Commons Chamber

[Laura Sandys (South Thanet) (Con)]

11. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.

[Julian Sturdy (York Outer) (Con)]

12. What progress he has made on bringing forward proposals for reform of energy markets to improve security of supply.