Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 9th February 2023 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

4. What recent progress her Department has made on tackling export barriers for food and farming businesses.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

May I also pay tribute to you for the way that you welcomed President Zelensky here yesterday, Mr Speaker? The occasion made us even more proud to be British.

Over the financial year up to March 2022, we did away with 192 barriers across 79 countries, including by opening up markets for UK poultry meat in Japan, and for UK pork in Mexico—a market that will be worth £50 million to UK pork producers in the first five years of trade. Of course, Cornwall is home to fantastic British produce, such as Cornish yarg and clotted cream, which are promoted and recognised around the globe through the GREAT Britain and Northern Ireland campaign, and at home through our “Made in the UK, sold to the world” marketing strategy.

[Mrs Murray]

I have to mention Cornish blue and Cornish Gouda, which are made in my constituency. South East Cornwall farmers are rightly proud of their excellent produce. What more can the Department do to help these small businesses access the widest possible market?

[Kevin Hollinrake]

My hon. Friend is absolutely right: we should be very proud of the food and drink sector. It is our largest manufacturing sector—larger than automotive and aerospace put together. Our Export Academy delivers specialist food and drink modules to get companies started, and our Export Support Service can answer questions on export markets in Europe. Companies can access our network of international trade advisers across England, and the Department has teams in Scotland, Wales and Northern Ireland.

[Mr Speaker]

I call shadow Minister Dame Nia Griffith.

[Dame Nia Griffith (Llanelli) (Lab)]

It is over a year since the announcement of eight additional agrifood and drink attachés. Given that there was yet another gloomy report from the British Chambers of Commerce last month, which said that three quarters of SMEs anticipated zero or negative export growth this year, help is certainly needed. Will the Minister tell us what specialist training the attachés have completed on food and drink regulation in the relevant countries? How many UK SMEs have they helped to find new markets, and what is the value of any new exports that they have secured?

[Kevin Hollinrake]

I am very happy to engage with the hon. Lady on that question, which had a number of other questions within it. As she knows, we have staff in more than 100 markets, and are building our existing attaché roles in China, Japan and the Gulf region. The Government are placing eight new dedicated UK agriculture, food and drink attachés in growth markets such as the US, Canada, Africa, India, South America, Brazil and Mexico.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What steps her Department is taking to help small and medium-sized businesses export products and services to new markets.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Department is opening new markets and creating new opportunities for exporters by agreeing new trade agreements and tackling market access barriers in countries around the world. Indeed, recently a deal was struck, worth up to £20 million, that allows Welsh lamb exports to the US.

[Gerald Jones]

The 2019 Conservative manifesto committed to 80% of UK trade being done under free trade terms by the end of 2022. The Government have clearly failed in their commitment to deliver free trade agreements. Does the Minister believe that free trade deals with the USA and India would help more small and medium-sized businesses to export? If so, would he care to apologise to businesses for over-promising and under-delivering yet again when it comes to these deals?

[Kevin Hollinrake]

Trade agreements are clearly very important, which is why we have struck 71 agreements with countries around the world, as well as with the European Union. It would be a good thing if the Opposition were to support those free trade agreements. I just reassure the hon. Gentleman that trade with the EU, for example, is now at record levels. Last year, exports to the EU were £330 billion, compared to £298 billion in 2019.

[David Duguid (Banff and Buchan) (Con)]

Small and medium-sized businesses make up a large part of the huge food and drink export sector that the Minister has already discussed. Tomorrow, the Scotch whisky industry will announce full-year export results for 2022. Significant growth is expected, particularly in India, even with 150% tariffs. Will the Minister update the House on negotiations with India? Does he agree that a deal to reduce tariffs on Scotch whisky would be good not only for the distillers of Scotch whisky in Scotland but for the wider supply chain right across the UK?

[Kevin Hollinrake]

I know my hon. Friend is visiting one of his distilleries next week. I agree with him that opening new markets to our whisky exporters is one of the great opportunities open to us in a post-Brexit Britain. As he knows, whisky is one of the UK’s largest food and drink exports, with £4.6 billion in 2021. We have an ambitious programme of free trade agreement negotiations to break down barriers. We are now in our sixth round of negotiations with India this very week.

[Antony Higginbotham (Burnley) (Con)]

6. What steps her Department is taking to help secure more inward investment into the UK.

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[Gareth Bacon (Orpington) (Con)]

11. What recent discussions her Department has had with Metro Mayors on attracting more foreign direct investment.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I met Andy Street this week to talk about foreign direct investment, and Lord Johnson will meet the 10 Metro Mayors today and look to discuss how we can attract more investment into mayoral combined authorities and how the Department can connect strategic regional opportunities to major international capital, such as the sovereign investment partnerships that have been established over the past 18 months by the Department and the Office for Investment.

[Gareth Bacon]

I chair the all-party parliamentary group for London as a global city, and last year we published our first report, which featured analysis of the London-plus effect, a term coined by the London & Partners agency to show that our capital is the gateway to the world and that companies that first invest in London go on to contribute £7.6 billion and create 40,000 jobs throughout the country. Is my hon. Friend’s Department willing to consider convening roundtables with the Metro Mayors on how to maximise the potential benefit to the UK of the London-plus effect?

[Kevin Hollinrake]

My hon. Friend is absolutely right. Andy Street was very clear about the importance of London to regional development in the west midlands. The Department convenes roundtable joint sessions with the M10 Metro Mayors twice every year, in additional to ongoing ministerial-mayoral bilaterals and official-level engagement. Such meetings include the discussion of shared priorities in respect of international trade and investment and of greater collaboration throughout all regions to increase foreign direct investment from new and existing investors.

[Chris Elmore (Ogmore) (Lab)]

The Minister will know that there are no Metro Mayors in Wales, but there are city deals and leaders that link across the south-west of England into Bristol and across the south Wales belt. Will the Minister set out what he is doing to work with local government leaders in Wales to ensure that investment is brought into Welsh constituencies as well as those throughout England?

[Kevin Hollinrake]

The hon. Gentleman is absolutely right. We are pleased that across York and North Yorkshire we are about to get our own Metro Mayor; I am sure he is working hard to bring that kind of governance to his area too, because it clearly delivers opportunity right across the country. As he knows, the FDI stock in the UK is worth £2 trillion, which is the second highest amount in the world. I am sure the opportunities would be beneficial to the hon. Gentleman’s constituents should he strike that kind of deal.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

12. What recent progress she has made on a free trade agreement with the US.

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[Selaine Saxby (North Devon) (Con)]

16. What steps her Department is taking to help increase trade opportunities for the green industrial sector.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Green trade is a foundational building block of sustainable growth, helping to protect our environment and our energy security, and future-proof UK jobs. In the two years to October 2022, the Government have supported £20 billion of net zero-related inward investment to help grow our green industries.

[Selaine Saxby]

Does my hon. Friend agree that, if we drag our feet developing new renewable energy industries, foreign investment will go overseas?

[Kevin Hollinrake]

I agree with my hon. Friend and thank her for her incredible work on the Celtic sea initiative. I attended her reception in Parliament, which was very well attended indeed and very optimistic about the potential for the Celtic sea.

We know that the net zero transition will create new industries worth around $10 trillion to the global economy by 2050. We recognise that the international landscape is becoming increasingly competitive as a result, but we are not dragging our feet. Securing inward investment to the UK’s green economy is a top priority for the Government, and the Department will be working closely with the Department for Energy Security and Net Zero, UK Export Finance and the Office for Investment, using all the levers at our disposal to promote the UK offer overseas.

[Liz Twist (Blaydon) (Lab)]

18. What steps she is taking to support effective parliamentary scrutiny of new free trade agreements.

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[Mr Philip Hollobone (Kettering) (Con)]

T6.   Excitement is building in Kettering ahead of the visit by the Minister with responsibility for small business, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), to the North Northants Business Network on Friday 10 March. One hundred representatives from local small businesses are really keen to meet him. Will he be kind enough to give us a taster of the optimistic message that he will bring to small businesses in Kettering?

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Excitement is also building in me ahead of my visit to Kettering. I am a proud champion of small businesses, which, as we all know, are the engine room of growth in our economy. That growth has been good over the past 12 years—the third fastest in the G7—but we want it to be faster. I am very keen to engage with my hon. Friend to see how we can help small and medium-sized enterprises to do that.

[Liz Twist (Blaydon) (Lab)]

T2.   Now that the Trade Remedies Authority has been in operation for almost two years and has produced its decision, can the Minister tell me what plans there are, if any, to review how it operates and the guidelines to which it works?

[Antony Higginbotham (Burnley) (Con)]

T7. It is brilliant to see that state-level memorandums of understanding are being signed in the US, but with only three so far, it is clear that we can go further to cement that important trading relationship. What progress are we making with other states, and when can we expect further MOUs to be signed?

[Kevin Hollinrake]

Absolutely. We have agreed MOUs with Indiana, North Carolina and, most recently, South Carolina, as my hon. Friend sets out. We are actively engaging with other states, including Oklahoma, Utah, Texas and California, and I look forward to updating the House on further progress.

[Kate Osamor (Edmonton) (Lab/Co-op)]

T3. I understand that the Government are set to undertake a second round of trade negotiations with Israel in the spring. Israel applies our current agreement to the Occupied Palestinian Territories, against the EU negotiator’s original intentions. Have the Government considered how they will go about preventing any repeat of that situation and preventing illegal settlements from benefiting from the prospective deal?

[Greg Smith (Buckingham) (Con)]

The global dairy market is forecast to be growing in the region of 2%, so can my hon. Friend outline what steps his Department is taking to ensure that our world-class British dairy products are at the front of the queue to benefit from that growth?

[Kevin Hollinrake]

My hon. Friend is absolutely right. As I said earlier, food and drink is our largest manufacturing sector—larger than aerospace and automotive put together. He is right to point out the opportunities for dairy in our free-trade negotiations, and that will be taken forward as the negotiations progress.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T5.   Banks and insurers are using environmental, social and governance criteria to block companies that work in the defence industry, stifling jobs, skills, innovation and UK exports. Why have the Government done nothing about that?