Oral Answers to Questions

Ranil Jayawardena Excerpts

Thursday 21st April 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

First, I thank my hon. Friend for her efforts in boosting our nation’s trade with Norway and Iceland as the Prime Minister’s trade envoy.

Last year, on behalf of the Prime Minister, we delivered the global investment summit, which saw almost £10 billion of foreign investment into our offshore wind, hydrogen and electric vehicle sectors. Meanwhile, the Office for Investment landed almost £18 billion of further green deals, and just last month the Prime Minister met Australian investors, who committed more than £20 billion to clean energy projects across the kingdom.

[Felicity Buchan]

I am proud that the UK is a leader in the G7 in the transition to net zero. I am the trade envoy to Norway and Iceland, where there are huge opportunities to do more to further that transition to net zero. Will my hon. Friend update the House on the discussions we have had specifically with companies in Norway and Iceland?

[Mr Speaker]

Can I just say to the Minister that he has his fan club up there in the Public Gallery? It is a pleasure to see his family watching him.

[Mr Jayawardena]

Thank you, Mr Speaker. They were delighted when you waved at them last time.

The United Kingdom is committed to deepening her partnership with Norway and Iceland, which was reinforced by the trade deal that I signed in July last year. It is one of our greenest deals ever and preserves our right to regulate to reach our net zero targets. Twin-tracking alongside that free trade agreement, we continue to collaborate on the development of green technologies such as the North sea link interconnector, which links the electricity systems of the United Kingdom and Norway and will increase the capacity of our renewable markets.

[Mr Speaker]

We now come to the SNP spokesperson, Drew Hendry.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The recent ScotWind announcement from the Scottish Government cements Scotland’s place as the world leader for floating offshore wind energy. It represents an incredible opportunity for unparalleled levels of inward investment while also taking meaningful action on climate change. Will the Minister join me in congratulating the SNP Scottish Government on making Scotland a global leader in offshore wind energy? Will he pledge to do all in his power to support this fantastic international trade and transition opportunity?

[Mr Jayawardena]

I am not sure about wind power, but there is already a lot of hot air in the House. I am delighted that the SNP now supports the British energy security strategy, which champions the power of offshore wind energy. I am also delighted that foreign investors are already responding to the United Kingdom Government’s proposals, including in the form of a sovereign investment partnership with the United Arab Emirates, which is investing £10 billion, including funds for energy transition.

[Drew Hendry]

I will forgive the Minister for showing off to his family, but this is an important issue. A net exporter of energy, Scotland has 25% of Europe’s offshore wind potential and is perfectly placed to step in to help Europe to pivot away from dependency on Russian oil and gas and towards renewable energy. Indeed, it is estimated that up to 30 GW could be available to export through ScotWind and INTOG—the innovation and targeted oil and gas process—and on top of that a manufacturing superhub at Nigg and Cromarty firth could export components throughout Europe, thereby reversing the historical position across the UK of importing technology, and so boosting trade. Specifically, will the Minister commit his Government to working with the Scottish Government to maximise this massive transition and international trade opportunity?

[Mr Jayawardena]

I am delighted to say that next week the Secretary of State will be in Aberdeen, demonstrating this Government’s commitment to the whole of the United Kingdom. We work with devolved Administrations across the kingdom to make sure that every corner of the country benefits from international trade. The truth is that while we are batting for every corner of the country, backing British businesses and supporting Scottish jobs, the SNP wants to cut Scotland off from its largest market, which is the British internal market.

[Martin Vickers (Cleethorpes) (Con)]

Foreign investment in our green industries is extremely beneficial and welcome, as my Cleethorpes constituency can bear out. Equally, British-based companies have great opportunities to export our expertise in the green sector. What initiatives is the Department taking to develop those opportunities?

[Mr Jayawardena]

I always welcome my hon. Friend’s support for our agenda. The Department has already launched interventions to support international investment into all corners of the country. Those interventions include the high potential opportunities programme and the trade and investment hubs. The hub in Darlington assists more than 1,000 foreign direct investment projects throughout the country which will drive the technology forward.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

5. What recent assessment the Government has made of the effect of the UK's departure from the EU on UK global exports.

--- Later in debate ---

[Ben Everitt (Milton Keynes North) (Con)]

6. What steps her Department has taken to reduce barriers to global trade for British businesses.

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

Bulldozing trade barriers enables countless British businesses to export goods and services around the world with greater ease and at lower cost. We resolved more than 200 barriers in the year ending April 2021—a 20% increase on the previous year. From securing British access to Japan’s poultry market, estimated by industry to be worth up to £13 million per year, and lifting the decades-long ban on British lamb exports to the US, estimated to be worth £37 million over five years, to cutting costs in services trade, an export of £304 billion in 2021, by up to 7% annually, we are getting on with the job.

[Ben Everitt]

Getting on with the job indeed. Breaking down barriers to trade and providing businesses with the right tools and support to reach global markets is exactly what we should be doing. I welcome the Department’s regional trade advisers and the role they play in supporting companies such as Carlton Packaging in Milton Keynes. To build on that support, will my hon. Friend work with me to bring together business in Milton Keynes, the Department and those regional trade advisers to support those business opportunities now that we have left the European Union?

[Mr Jayawardena]

I am very pleased to know that businesses in my hon. Friend’s constituency, including Carlton Packaging, are receiving support from this Department. Milton Keynes has not only exports worth over £3.4 billion, but a great champion of our trade deals in him. I shall be delighted to work with him to help businesses to use those deals to create jobs and boost wages while lowering prices for consumers.

[Bell Ribeiro-Addy (Streatham) (Lab)]

7. What recent discussions she has had with Cabinet colleagues on resolving outstanding EU trade issues.

--- Later in debate ---

[Robert Largan (High Peak) (Con)]

9. What recent steps her Department has taken to increase trade with Israel. [R]

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

I am thrilled that our two Prime Ministers have agreed to negotiate an ambitious free trade agreement, with exciting new provisions in digital, data, technology, services and innovation. We have completed our consultation and are analysing the responses now, with a view to launching formal negotiations, along with others, later this year.

[Robert Largan]

I refer Members to my entry in the Register of Members’ Financial Interests.

I welcome the Government’s commitment to negotiating a trade deal with our great friend and ally Israel, which will be of huge benefit to lots of businesses in High Peak and across the country. May I urge the Minister to go further and ensure that any deal does not just include products but looks at services, which make up around 70% of both the UK and Israel’s economies? It is an area in which we are both world leaders, and there would be much mutual benefit.

[Mr Jayawardena]

Absolutely. My hon. Friend correctly points out that our two economies have strong service sectors but our current deal predominantly caters for trade in goods. That is why we intend to negotiate a more ambitious, comprehensive and innovation-friendly trade deal, which will open up opportunities for British businesses in areas such as tech, data and digital. My hon. Friend will be aware that next month we are hosting the first ever joint innovation and investment summit between our two countries. That will be a key moment as we deepen our relationship, creating opportunities to increase trade and investment between our nations, create new jobs and boost wages.

[Peter Aldous (Waveney) (Con)]

10. What steps her Department is taking to increase exports of renewable energy services.

--- Later in debate ---

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

T7. Figures indicate that Chile is the UK’s 60th largest export market. Will the Secretary of State update the House on the work being undertaken to create an updated and bespoke trade deal with Chile? As chair of the all-party parliamentary group for Chile, I hope that the group can meet the Department to support that work.

[The Parliamentary Under-Secretary of State for International Trade (Mr Ranil Jayawardena)]

It is always a pleasure to meet the hon. Lady. I am happy to confirm that we are committed to bulldozing trade barriers. I am pleased that Chile has been able to approve British pork producers exporting into a market that is worth over £200 million as part of our total trade in goods and services of £26.5 billion. There is more to do; I am happy to meet her.

[Andy Carter (Warrington South) (Con)]

T4. The Gulf states are an important trading zone for businesses based in Warrington South, particularly given the excellent links through Manchester Airport to the Gulf. What progress is my hon. Friend making in developing trade and investment links between the UK and the Gulf Co-operation Council?

[Mr Jayawardena]

The six GCC nations form together one of our largest trading partners, with total trade standing at over £31 billion in the four quarters to September last year. In January, we completed a public consultation in support of a trade deal with the GCC that gets the best deal for British businesses and consumers. We aim to start those negotiations with others later this year. In the meantime, we are driving forward investment, including £1 billion from the Kingdom of Saudi Arabia supporting sustainable aviation in Teesside, and, as I referred to earlier, £10 billion from the United Arab Emirates in a sovereign investment partnership.

[Grahame Morris (Easington) (Lab)]

T8. Vivarail showcased its world-beating, self-charging battery trains to delegates at COP26 in Glasgow. What steps is the Minister taking to promote UK manufacturing, especially green manufacturing, and win export orders for excellent businesses such as Vivarail, which is located in my constituency?

--- Later in debate ---

[Ruth Edwards (Rushcliffe) (Con)]

T9. The global surge in energy prices has highlighted the importance of securing both inward investment in green energy generation in the UK and related trading partnerships. Will my hon. Friend set out what the Government are doing to accelerate both those things?

[Mr Jayawardena]

We are driving unprecedented investment in green industries, with the British energy security strategy announcing further cuts to the red tape that hampers growth in some of these sectors. My noble Friend Lord Grimstone is leading our new Office for Investment, and I am delighted that our friends across the Gulf are as keen as we are to back innovation in this area. For instance, £100 million has flowed in from Qatar to support small modular reactors and net zero technology.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

The Secretary of State for Environment, Food and Rural Affairs in 2019—now the Secretary of State for Levelling Up, Housing and Communities—insisted to the public that food and welfare standards would be maintained under UK trade deals struck after Brexit. Indeed, the Prime Minister has said so frequently, but the Minister for Brexit Opportunities and Government Efficiency is reported as saying yesterday that he wants to see food regulations slashed. Who is right?

[Mr Jayawardena]

We have always been crystal clear that our food safety, animal welfare and environmental standards are not for sale.

[Sir Robert Syms (Poole) (Con)]

Can we have an update on our joining the trans-Pacific partnership? That is important not only because of the growing markets, but because of the international challenges, stability and defence in the region.