Oral Answers to Questions

Debate between Nusrat Ghani and Nicola Richards

Thursday 25th January 2024 Commons Chamber

[Nicola Richards (West Bromwich East) (Con)]

18. What steps her Department is taking to help protect supply chains in the context of the disruption to trade in the Red sea.

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

More than 15% of global shipping traffic passes through the Red sea, making it one of the most important strategic waterways in the world. Overall, a whopping 12% of global trade volumes use this trade route and my Department is monitoring the impact of events in the Red sea closely. I was previously the shipping Minister and now I am the Minister for advanced manufacturing, so I know that this is important to industry.

We are working to equip UK businesses with the tools they need to deal with global supply chain issues. Just last week, I published the world’s first ever critical imports and supply chains strategy in collaboration with industry. The strategy includes making the UK Government the centre of excellence for supply chain analysis and risk assessment, supporting our status as the world’s eighth largest manufacturer. This will help UK business to build secure and reliable supply chains, which are vital to the UK’s economy, national security and the delivery of our essential services.

--- Later in debate ---

[Mr Speaker]

Order. Come on! I call Nicola Richards.

[Nicola Richards]

At a time when we are beginning to see inflation fall, recent developments in the Red sea are extremely concerning, not just in terms of security, but because of the huge cost to shipping. My constituents do not want an increase in prices as a result of the terror attacks. Can the Minister build on the excellent answer she gave to my hon. Friend the Member for Lichfield (Michael Fabricant) by reassuring businesses in my constituency that we will do all we can to maintain the flow of goods to and from the UK?

[Ms Ghani]

Absolutely. The UK will always stand up for the freedom of navigation and the free flow of trade. We take threats to shipping vessels in the Red sea extremely seriously. My hon. Friend is right to note that, fundamentally, there has been an increase in cost potential, including a 124% increase in freight rates, which is why we have produced a strategy and why we have a council that will continue to work with industry to ensure that supply chains are resilient and the situation has the smallest possible impact on our economy.