Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 9th February 2023 Commons Chamber

[Mark Eastwood (Dewsbury) (Con)]

3 What steps her Department is taking to help increase export opportunities for small and medium-sized businesses.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

UK exports have grown by 24% year on year, and our landmark 12-point export strategy will challenge Government and the private sector to reach £1 trillion-worth of exports a year. As part of that strategy, we created the export support service, which has brought together helplines and services across Government to build a one-stop shop for UK exporters facing challenges in exporting to the EU. We are also delivering for businesses through our dedicated team of international trade advisers, reinforced by Department for International Trade events and programmes such as the UK Export Academy.

[Mark Eastwood]

Last month, I was delighted to co-host my first successful export academy at Kirklees College in association with the Department for International Trade and UK Export Finance. Will the Minister outline how local DIT officers and UKEF can assist SMEs to export their goods and services across the world?

[Ms Ghani]

Mr Speaker, may I first thank you for your leadership in hosting President Zelensky yesterday? It really was a humbling moment for us all. My hon. Friend the Member for Dewsbury (Mark Eastwood), with his can-do attitude, is constantly championing everybody in Dewsbury. As he may know, UK Export Finance offers a range of trade, finance and insurance products to help small and medium-sized businesses fulfil export contracts. It works with more than 100 private sector partners, including all major UK banks. UKEF support is underpinned by the innovative general export facility, a product designed to give SME exporters more flexibility when accessing trade finance. It unlocked almost £250 million of working capital loans in the last financial year. Local trade has obviously helped strengthen the “Made in the UK” branding, which provides export support to SMEs across the country. Face-to-face support for exporters in England is delivered via a network of around 200 international trade advisers. There is so much to say, but I think I should stop there.

[Mr Speaker]

Hear, hear. I call Matt Western.

[Matt Western (Warwick and Leamington) (Lab)]

SMEs in my area have been doing a huge amount of business internationally. One such company has been exporting 80% of its business for decades. In recent years, it has been challenged by China, and has had intellectual property issues; its IP has been stolen. I am afraid to say that it felt unsupported by the Department for International Trade. It faces an issue in Germany. Will the Minister meet me to help this business with the challenge that it faces in those countries?

[Ms Ghani]

The beauty of having former business Ministers in the new Department is that we are across most of these issues, including the issue of IP. I am more than happy to sit down with the hon. Gentleman, or to make sure that the right Minister does, because we need to protect our IP.

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

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

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[Robbie Moore (Keighley) (Con)]

17. What steps her Department is taking to help increase the level of inward investment into the UK.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

The UK’s total inward investment stock is the second highest in the world, having recently passed £2 trillion. As the Secretary of State outlined, we want to make the UK the undisputed top investment destination in Europe, attracting high-impact, high-value investment into our strategically important sectors which will make a real difference to the UK economy. We are facilitating both Government-to-Government and industry investment. The UK-UAE sovereign investment partnership will bring £10 billion to key UK sectors. Likewise, the Moderna partnership will support our research and clinical trials infrastructure, building a state-of-the-art vaccine manufacturing centre and creating over 150 highly skilled jobs in the UK. Compared to 2020-21, last year —2021-22—the estimated economic impact of foreign direct investment projects supported by the Department for International Trade increased by 82% and the number of new jobs by 53%.

[Mr Speaker]

Minister, why are the answers so long? We have not heard the rest of the questions yet. I have a big list.

[Antony Higginbotham]

Burnley and Padiham are already home to some brilliant international businesses, such as Safran Nacelles, Paradigm Precision and Futaba Manufacturing among many, many more. Together, they support thousands of local jobs. To make our area even better, we want to attract more investment, helping businesses already here to grow and attracting new ones in. Will the Minister agree to meet me to talk through how we can make Burnley the best place to invest in Britain?

[Ms Ghani]

I think my hon. Friend, in promoting Burnley so much, has already made it the best place to be doing business. Burnley has a global reputation for manufacturing excellence. The companies that he references demonstrate the attractiveness of his constituency to investors across the globe, and the free trade agreements make it easier for investors to bring capital and create jobs in Burnley. And, of course, we would be delighted to meet him.

[Daniel Zeichner]

The Minister references the life sciences sector, which is so important for future prosperity, particularly in and around Cambridge. We are in danger of falling behind in the race for international investment, as evidenced by the fact that since 2018 we have fallen from fourth to 10th in hosting late-phase clinical trials. What are the Government doing to address that issue?

[Ms Ghani]

On clinical trials specifically, when I was life science Minister we commissioned a review of clinical trials—we knew that was a blockage—but I do not think the data he presents reflects the £1 billion Moderna deal we have just secured, including the deal with biotech. The fact that we have life science missions will enable us to attract more attention and work to the ecosystems we have here in the UK, including in the hon. Gentleman’s constituency. I am more than happy to work with him, because life science is one of our key exports of expertise.

[Robbie Moore]

I recently had the honour of welcoming the Prime Minister to Keighley, where he had the opportunity to visit Teconnex, a global leader in clamp technology that also provides battery storage to help commercial and industrial facilities to become more energy-independent. What steps is my hon. Friend taking to ensure that with businesses such as Teconnex in my constituency and other world-leading businesses right here in the UK, we can be seen as a more attractive place for foreign investment?

[Ms Ghani]

My hon. Friend proudly represents Teconnex as a firm in his constituency. The Department is keen to support all businesses that seek to invest or expand in the UK, particularly those that can help to spread jobs and opportunities across the UK and help us to deliver net zero. The Department is working across Government; we have previous Business Ministers here, and we are very close to the automotive sector and the supply chain. The new Department will ensure that there is a single, coherent voice for business inside Government to help my hon. Friend to represent business in his constituency.

[Andrew Gwynne (Denton and Reddish) (Lab)]

The investment in Moderna will not be worth anything if we do not have the precision temperature-calibrated machinery to help with that development. SK Wiring in Denton is the UK’s only manufacturer of that high-tech wiring. It stayed open during the pandemic, even though it lost 70% of its industrial trade, to keep the covid vaccine going and keep the NHS going. It is now at risk of closure. Can we have an urgent meeting so that we can keep this critical national infrastructure developed in Britain?

[Ms Ghani]

Within the life sciences missions, manufacturing is a key point. I was at the life sciences conference in San Francisco when we finalised the deal with Moderna. Of course this is not about playing politics; I am more than happy to meet the firm in the hon. Gentleman’s constituency, because vaccine manufacturing will be a key growth area for us.

[Wera Hobhouse (Bath) (LD)]

7. What steps she is taking to help increase trade with European countries.

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[Mr Philip Hollobone (Kettering) (Con)]

8. If she will make an estimate of the level of foreign direct investment into the UK since 23 June 2016.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

More global multinationals have set up subsidiaries in the UK than in any country other than the United States. This is the best place in Europe in which to raise capital. Between April 2016 and the end of March 2022, the Department assisted more than 8,700 foreign direct investment projects in the UK, which have created about 348,000 new jobs across the United Kingdom.

[Mr Hollobone]

The UK has had a great track record of attracting foreign direct investment since we voted to leave the European Union. The figures given by the Minister will include the £200 million investment by Ball Corporation in the United States in the UK’s largest and Europe’s most advanced can manufacturing plant, in Burton Latimer. How does the UK’s record of attracting foreign direct investment compare with those of our major EU competitors?

[Ms Ghani]

My hon. Friend has given a fantastic example of the opportunities that have been created. The UK is a highly attractive destination for FDI, and has been among the top recipients in Europe over the last decade. According to the Financial Times and the United Nations Conference on Trade and Development, the UK has the highest market share of greenfield FDI capital expenditure in Europe, at 20%—almost double that of Spain, which is in second place with 12%. It also has the highest levels of Food and Drug Administration stock in Europe, second only to the United States globally. It is remarkable how far we have progressed in such a short time.

[Kerry McCarthy (Bristol East) (Lab)]

The Biden Administration’s Inflation Reduction Act 2022 makes investing in the US very attractive, particularly for innovative green technology. How are we going to compete?

[Ms Ghani]

In my previous role I was dealing with the impacts of the Inflation Reduction Act, and I hope I will continue to do so, because so many business representatives whom I have met have raised it as a concern. The hon. Lady has referred to green technology. A great deal of work has already been done to promote all our expertise, especially in relation to hydrogen, but there is a huge amount of investment in the UK’s green technology sector and technology in general, and we are also a leading light when it comes to lithium. I was recently in Cape Town with our Green Lithium firm, which wanted to negotiate on how it could do more work in the United States. That is exactly what we are here to do—to facilitate collaboration of that kind.

[Giles Watling (Clacton) (Con)]

9. What assessment she has made of the potential merits of establishing a trade envoy for the Commonwealth.

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[Rachel Hopkins (Luton South) (Lab)]

10. What steps she is taking to help increase automotive exports.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.

[Rachel Hopkins]

If we are to continue to drive British automotive exports, it is critical that automotive businesses such as Vauxhall in Luton can make the transition to manufacturing electric vehicles effectively. The rules of origin from 2024 onwards highlight the need to attract the wider electrified supply chain to the UK as soon as possible. How is the Minister working with the automotive sector to expand our domestic electric vehicle supply chain—especially in respect of batteries—to avoid any future tariffs when rules of origin come into effect?

[Ms Ghani]

The hon. Lady will hopefully find some comfort in the fact that I have many meetings with the Society of Motor Manufacturers and Traders and have met the automotive sector multiple times to deal with this issue. We are very much aware of the rules-of-origin issue, which is why we are investing so much in batteries. In particular, the Faraday battery challenge is a £541 million project to help us to develop new battery technologies. I have mentioned already that I was in Cape Town to deal with the diversification of access to critical minerals in supply chains to ensure that we can process them and manufacture here.

[Mr Richard Bacon (South Norfolk) (Con)]

Would the Minister like to congratulate Group Lotus in my constituency, which exports more than 70% of its car production? Would she like to take the opportunity to come to Hethel to see the new Lotus Evija supercar, which can do nought to 180 mph in nine seconds?

[Ms Ghani]

I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.

[Gareth Bacon (Orpington) (Con)]

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

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[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

My hon. Friend once again promotes a fantastic business in his constituency. The UK tech and digital sectors are key for us and are our greatest success stories, with a total valuation in excess of £1 trillion in 2022. The UK tech sector retains the No. 1 spot in Europe and is No. 3 in the world, as the sector’s resilience brings continued growth. On tech within life sciences, we are one of the top countries in the world to be seen collaborating and investing with.

[Mr Speaker]

I call the shadow Secretary of State.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I thank you, Mr Speaker, and all House staff for the work on President Zelensky’s visit. I also welcome the Ministers to their rearranged places, but I do not think it is a surprise that the Prime Minister has decided to shuffle the deckchairs on this particular ship. We had a Department for Business, Energy and Industrial Strategy with no industrial strategy and we had a Department for International Trade delivering either no deals or bad deals. In an assessment of the Conservatives’ 13 years in office, can the Minister inform the House when they expect to hit the target of £1 trillion- worth of exports, which David Cameron promised by 2020?

[Ms Ghani]

What a blow to one’s ego to know that one’s Department is such a disappointment, but we are working so closely with our colleagues to drive investment, represent businesses and focus on trade that it makes absolute sense for us to be here. I know that I am new to this business, but I thought that the £1-trillion target was for 2030. If that is the case, we have seven years to go, so I suggest that the right hon. Gentleman be a little patient. In seven years’ time, he will be there, on the Opposition Benches, and we will be here, on the Government Benches, ready to update him.

[Nick Thomas-Symonds]

David Cameron promised it by 2020; the last Prime Minister but one promised it by 2030; and, as the Department for International Trade set out in a written response, the Office for Budget Responsibility said that the target will not be met until 2035—15 years late. Is that any surprise? The Government have delivered no trade deal with the US, no trade deal with India, and an ongoing impasse on the Northern Ireland protocol, and the current Prime Minister said that the deals that they have delivered, such as the Australia deal, were “one sided”. The truth is that they can swap around Ministers and departmental names, but at the heart of it is a failing Government who are out of ideas.

[Ms Ghani]

I completely understand why the right hon. Member may be confused. We on the Conservative Benches represent business, and I know that the Labour party was stopping people from doing their business by backing the strikes. We on this side of the House represent trade, but I cannot think of a single trade deal that he was proud to support. I can understand the level of complete confusion, but I do not understand some of the figures that he cites.

There is such fantastic news out there. We have talked about the fact that we have attracted £20 billion in tech. Why would the right hon. Member not be proud of that? If he wants to talk about reports, just last night I read the PricewaterhouseCoopers report, which said that the UK would be the fastest growing G7 economy by 2050, and will outgrow Germany, France and Italy. That is good news. I thought Thursday mornings were about promoting Great Britain—

[Mr Speaker]

And topical questions are meant to be short and brief. I call Philip Hollobone to set the example.

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[Mark Eastwood (Dewsbury) (Con)]

What action does my hon. Friend intend to take to reduce tariff barriers with developing countries, such as Pakistan?

[Ms Ghani]

I believe that my hon. Friend is the trade envoy to Pakistan, and I look forward to collaborating with him. Pakistan already has a preferential trading relationship with the UK through our generalised scheme of preferences. This will be replaced by the developing countries trading scheme, and Pakistan will continue to benefit from duty-free exports to the UK and the removal of tariffs on 156 products. I look forward to working with my hon. Friend.

[Alison Thewliss (Glasgow Central) (SNP)]

Edusport Academy, based in my constituency, was set up in 2011 and had a thriving business prior to Brexit. It brings young sports people over to Scotland, combining sport and English language training. Since Brexit, Edusport has struggled to make the business work due to restrictions put in place by the Home Office. Will the Minister meet me and Edusport to discuss how we can make this business work and continue to thrive?

[Jim Shannon (Strangford) (DUP)]

The fairness of imports and exports in Northern Ireland is hindered by the impacts of the Northern Ireland protocol. What steps are being taken to ensure that the Northern Ireland Protocol Bill, which is sitting in the House of Lords like the Mary Celeste, as others have said, passes smoothly and efficiently to reinforce trading fairness for businesses in Northern Ireland?

[Ms Ghani]

Northern Ireland plays a full part in all our trading agreements, and I believe that a Northern Irish machinery exporter is involved in the Australia deal. My hon. Friend and I have spoken quite a bit about the Northern Ireland protocol in respect of the Bill I took through recently, and he will be aware of the sensitive discussions that have taken place with the Administration to ensure everything can be as smooth as possible. If needed, I will always be available to meet my hon. Friend.

[Mr Speaker]

I will have to suspend the House until 10.30. I am sorry nobody else wanted to come in.