UK Trade Performance

Lord Lamont of Lerwick Excerpts

Tuesday 7th May 2024 Lords Chamber

[Lord Lamont of Lerwick (Con)]

My Lords, I thank my noble friend the Minister for his very robust reply. The main attack from the opposition spokesman last Wednesday was to criticise the Secretary of State because the figures she quoted for exports—£862 billion—were not adjusted to inflation. That is, they were not volume figures but value figures. I put it to my noble friend that that point is a completely false one. It is entirely appropriate to quote value figures rather than volume figures for an economy that is overwhelmingly services, because it is very difficult to measure services and services exports in terms of volume.

Secondly, it is appropriate to measure exports in terms of value because that is what matters to the person who is employed and getting paid. They get paid in pounds, shillings and pence, so measuring them in value terms is perfectly legitimate. Thirdly, everybody laughs as though it were a superficial matter, but this has been disputed. The opposition spokesman was quoting Mr Conway, whose figures have been attacked publicly in the press and by many other commentators. In any case, is his argument very profound, given that the Secretary of State gave figures for exports by volume as well? She gave both—so I do not see how she can be accused of being misleading in any way.

Does my noble friend agree that it is profoundly depressing that, near to an election, hoping to form the next Government and believing that they will, all they can do is talk the economy down? They are determined that everything should be bad news. This is not the proper basis on which a party serious about being in government should be talking about our economy.

I have one question for my noble friend about the motor vehicle industry. I very much applauded the decision to delay the date for battery vehicles being compulsory, but could the Government go further and accord with the request by Stellantis that they should not fine companies that produce good petrol cars before people are ready to buy electric cars? As he will know, there is a lot of sensitivity in the motor industry about this position and quite a lot of motor companies have changed their view, so I would be very grateful if he could comment on that.

[Lord Offord of Garvel (Con)]

I thank my noble friend for that contribution on a subject that he knows well. I will come to his specific question on auto in a moment. I will say that we are in a strong position here, but of course there is more that we can do. One of the focuses of DBT and my portfolio is to try to increase the number of companies that export. At the moment, we have 300,000 companies exporting. My personal ambition is to try to get that up to 500,000, which would be 20% of the 2.5 million registered companies.

The reason why we want these companies to be exporting is that we discover that they share some very interesting characteristics. First, they are well managed; they have ambitious management teams and are quite often owner managed. Secondly, if they are selling goods and services around the world, it is because they are world class and will get high margins for those products and services, so they will be more profitable. And here is the silver bullet—they pay higher wages. If 70% of them are based outside London and the south-east, that is real levelling up. So of course there is more that we can do, but there is a strong recovery going on in our economy right now.

On the specific issue of automotive, obviously we have had a discussion with Stellantis and have talked about Nissan et cetera. Sometimes these discussions are described as U-turns, but I see them as part of a practical journey to net zero. We have to move in a practical way and take the public with us. Right now, we have a direction of travel but we have to be flexible, as we have been with heat pumps and indeed cars, to make sure that we take the public with us. The market itself has not yet landed and has to decide exactly how this will be fulfilled.

I do not see this as in any way reneging on our net-zero commitments. Right now, 75% of our economy is powered by petrochemicals and 25% by renewables. The 2050 target is to flip that on its head and make it 25% hydrocarbons, which would be green and clean hydrocarbons, and 75% renewables. How we get there is to be done over a generation. We have a direction of travel, but we will be flexible about it as we go, as we already demonstrated with heat pumps and cars. I am very clear that we will get there and in a way that continues to make sure that our industries are profitable and that our workers are well paid.