Sammy Wilson
Main Page: Sammy Wilson (Democratic Unionist Party - East Antrim)Trade, Exports, Innovation and Productivity
Sammy Wilson Excerpts(8 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Stewart Hosie
It certainly should in the sense that the sector is important not simply for Aberdeen or for Scotland, but for a supply chain throughout the UK. Indeed, the right hon. Member for Rutland and Melton (Sir Alan Duncan) set out, in his question at Prime Minister’s questions, the potential damage should the sector continue to suffer. This Government—indeed, all Governments, but particularly these Ministers, because many of them are believers—should do several things: continue to protect people who want to enter the sector by making sure they are properly trained; continue to support the supply chain in the North sea basin; and, to internationalise, look again at supporting the industry as it cuts its own costs and of course at the overall fiscal framework, which is a substantial cost. Essentially, as my right hon. Friend the Member for Gordon (Alex Salmond) said, the Government should look again at all the credits available, whether for exploration or production and whether for geographic areas or specific oil types, to maximise absolutely the longevity, employment and contribution to the economy of a sector that, as he rightly reminds the Government, has raked in more than £300 billion since oil started coming ashore.
Sammy Wilson (East Antrim) (DUP)
Does the hon. Gentleman see any inconsistency, in the answer he has just given to his colleague, between looking for ways to increase the output of North sea oil and the Scottish National party’s aim of totally decarbonising energy production in Scotland?
Stewart Hosie
No. The decarbonisation of electricity production is sensible for many reasons, which may well include carbon capture and storage. On a number of occasions during the past five years, and very recently under this Government, we have seen the cancellation of a competition to develop an industrial-sized testbed to show the efficacy of a technology which would make us a world leader.
Anna Soubry
I cannot add to my hon. Friend’s extremely good and well-made point.
Let me now move on to deal with the important issue of productivity. Delivering a return to productivity growth is one of the key economic challenges for this Parliament and the route to raising living standards for everyone in the UK. We have lagged behind other major economies—let us be honest about it—for decades, and productivity in Scotland is still 2.5% below the UK average. That is why we are determined to fix it, although I shall not pretend that there are any short-term measures. This is going to take some time and a lot of hard work.
In last year’s summer Budget, the Chancellor set out the Government’s ambitious plan, “Fixing the foundations: creating a more prosperous nation”. That ensures that we do everything possible to deliver higher productivity in the UK. Skills and education are, of course, key to improving productivity, and we have invested in skills, delivering 2 million apprenticeships in the last Parliament, with 3 million to be delivered in this Parliament.
Our education reforms are already raising standards. Unfortunately, under the SNP, standards of numeracy and literacy in Scotland have been falling, and fewer of Scotland’s most deprived children attend a university compared with any other part of the UK—just 10.3% of the poorest 20% of Scots attend university, compared with 18.1% in England, 16.3% in Wales and 16.3% in Northern Ireland. We have also protected science spending, with £4.7 billion per year in resource and £6.9 billion in infrastructure to 2021. We continue to invest in our catapult centres.
We are delivering one of the largest and most ambitious infrastructure programmes in recent memory, with projects such as HS2, which I have no doubt everybody should back because it will bring huge benefit to our country, especially to my constituency, as we hope to have the east midlands hub in Toton. In addition there is Crossrail, a huge project across the capital, and the largest investment in our roads since the 1970s. We are beginning to see signs of improvement. Output per hour grew by 0.5% in the third quarter of 2015 compared with the previous quarter, and was 1.3% higher than for the same period in 2014. UK productivity has exceeded its previous peak by 0.7%.
Alongside trade, innovation is another pillar on which our economy is built. Innovation is an important lever for increasing productivity. The excellent work of my colleague, the Minister for Universities and Science, has ensured that science spending is protected in real terms, with record investment across the UK—£4.7 billion per year in resource funding, rising with inflation, and record investment in our country’s scientific infrastructure, at £6.9 billion to 2021. The Government will protect all that in cash terms, with total spending on business-led innovation coming through Innovate UK.
We recognise that access to finance remains an important challenge for innovative enterprises, which is why we are committed to introducing new types of finance products to support companies to innovate. New products such as loans will replace some existing Innovate UK grants, and will reach £165 million by 2019-20. In 2014 alone, more than £2 billion was raised in venture capital in the UK—up 50% on the previous year. I see no reason why the UK cannot be Europe’s number one destination for innovation finance.
Sammy Wilson
I understand why the Government might want to change the way in which some research and development is financed, but does the Minister accept that, given the long lead-in time for many R and D projects, loans are not appropriate and will lead to innovation and research either going outside the UK or stopping altogether?
Anna Soubry
We are taking time to bring them in. It is, of course, a mix. In some instances, providing loans is absolutely the right thing to do, whereas in others we might well provide a grant. Flexibility is the right approach, and this allows us to put in the necessary money, even in these difficult times. I think we are doing the right thing about that.
Callum McCaig (Aberdeen South) (SNP)
It is a pleasure to take part in the debate, and to follow the hon. Member for The Cotswolds (Geoffrey Clifton-Brown), who has made some sensible suggestions. His proposal for buddying businesses is one that all the agencies involved should take on board. I was not expecting to speak quite so early in the debate. This topic is clearly of interest to some Members, but the memo about it does not seem to have been passed to the official Opposition. Some Labour Members are here, providing an honourable exception, but it is surprising to see so few here, given the importance of these fundamental tenets of the economy not only to the economy itself but to the services that they provide the money to pay for. If we do not get the economy right, we do not have the services.
I am really pleased to take part in this debate, and I am going to focus on one area where the UK, and in particular Scotland, has strong natural and competitive advantages: energy. I thank the Minister for a positive response to my question about oil and gas. It would be more helpful if we focused on what could be done to help the situation, rather than getting into some of the politics around it. I accept fully that we are in a political environment here, but we need to reflect on what message this place is sending to the folk in Aberdeen who are being laid off when we are having knockabout about the oil price—it is not helpful. Having said that, I respect, accept and am thankful for the positive comments made.
It would seem that the Government have turned over a new leaf in 2016 in their approach to oil and gas. Today, I have had positive conversations with the Energy Minister, who also gave a positive response to the questions from my hon. Friend the Member for Livingston (Hannah Bardell) about incentives for oil and gas at Energy and Climate Change questions last week. We are in an incredibly difficult position with the oil price, and jobs are being lost, but there is still a bright future. The industry is doing what it can to reduce costs—unfortunately, in many cases that will require job losses—but it is also innovating, and I will come on to discuss that. Help from the Government is, however, required in order to bridge over what we hope will be a temporary downturn. Most people expect the oil price to rise at some stage, but it is not clear when or by how much.
Aberdeen is a city of innovators—there is no doubt about that. Some of my SNP colleagues may be surprised to learn that the city in Scotland that filed most patents in 2014 was Aberdeen. It filed more than Edinburgh, whose population is twice the size of Aberdeen’s, and more than Glasgow, whose population is almost three times as large. These patents were primarily in oil and gas, but they were also in life sciences, biosciences and food and drink, and so the city is thriving. It is, however, unquestionably an oil and gas and energy hub, and the job losses announced by BP yesterday, coming on the back of 150 announced by Petrofac the day before, are genuinely heartbreaking for those involved. As I have said, the industry is taking the steps it can to innovate. Innovation is one of the hallmarks of the oil and gas industry, and it was heartening to see the level of innovation and of renewed collaboration that is taking place in the industry, as it works to deal with the lower oil price.
Some of the issues the oil and gas industry faces pre-existed the oil price fall but they have been exacerbated by it. There are three sides to the coin in terms of the costs and changes in income that oil and gas companies face. The first is the oil price, and none of us can do anything about that. The second is the costs that the industry is exposed to, and it is doing what it can there. The third is taxation, and I am pleased that it would seem Ministers have an open mind on that. I plead with them to look at oil and gas taxation in the round to see what can be done to help.
The important issue of the apprenticeship levy has been raised. We wholeheartedly support the levy, provided it has the investment coming to Scotland. There have been questions asked, again by my hon. Friend the Member for Livingston, about the potential double imposition of an apprenticeship levy-type scheme on oil and gas companies, which already pay significantly into training schemes through a number of industry levies.
As part of maintaining and progressing Aberdeen’s position as an innovative hub, our local authorities—Aberdeen City Council and the Aberdeenshire councils—are exploring a city deal. They are looking at significant investment in infrastructure, which is obviously an important part of this debate and a key way of securing economic growth, and very much at how they can continue to make the best of the expertise in innovation that the city of Aberdeen is proud to host. There are proposals within the city deal to create an innovation hub around the two universities, bringing together industry and universities in a way that has already been discussed today. Measures are required to protect the north-east of Scotland and provide the bridging for the oil industry that I mentioned, and the Aberdeen city region deal is a very important part of that toolkit. I commend it again to the Government, hoping that they will look upon it favourably and act quickly.
Even in these times of difficulty, there are many ways in which innovation in the oil industry can provide a massive support to the UK economy. Enhanced oil recovery is one such way, as is looking at being one of the first movers on decommissioning. We would not want to see that happening prematurely, but if it is inevitably going to happen, we have the ability, as we have one of the more mature oil and gas basins in the world, to take our expertise and export it globally. We cannot afford to miss that opportunity.
Let me move on to exports, the north-east of Scotland and the oil and gas supply chain, which is about much more than Aberdeen, as it goes the length and breadth of the UK. That situation is good and it is getting better; Aberdeen relies much less on the North sea, in terms of supply companies based there, for its income. I wish, however, to draw the House’s attention to something announced at the tail-end of last year. In principle, I support this, and I am not criticising it, but it needs to be taken in the round, with a more supportive approach being taken to oil and gas. I refer to the announcement that there would be an export credit agreement of $500 million for a couple of UK-based companies for exports to Petrobras, the Brazilian state-owned oil major. That is good in and of itself. It helps support exports from the UK—from Aberdeen—but when we are looking at these things, we need to be careful. If we are providing exports to something like the oil and gas industry elsewhere without providing the same at home, we may inadvertently end up requiring greater imports of oil and gas in the future. We do need to get the incentives for exploration right. Again, I do not mean to criticise, but we have to have both sides there; we have to have support not only for exports, but for the domestic industry.
Aberdeen, and Scotland more widely, have huge natural advantages on green energy, and the Paris deal cements the opportunity we have in that regard. There is a sad irony here, in that the deal comes at the same time as the UK Government have taken the hatchet to a number of green energy policies, undermining the opportunity to truly embrace what will be one of the biggest global growing markets of this century. In her much-heralded “reset” speech, the Secretary of State for Energy and Climate Change said:
“At the same time, we are building new interconnectors to make it easier to import cheaper electricity from Europe.”
I support the building of interconnectors, as does my party, because an integrated European market for electricity will be a good thing, but the ambition shown there and the logic for making this move is the wrong way round. We should not be doing this to import electricity; we should be doing it to export the green electricity that can be produced from the wind and the waves—the sea and the tides—in Scotland. That is what we should be doing. That is the opportunity interconnectors provide; the opportunity is not about importing cheap electricity, but about building an industry that we can be proud of, in order to develop the skills that we need.
The renewables sector is an important part of rebalancing the economy, in geographical terms as much as anything else. The criticism often made of renewables, particularly of onshore wind, is that they do not provide that many jobs. The reality is that onshore wind does provide a lot of jobs, doing so in places where without the wind industry it is likely that there would be no jobs at all. We cannot overstate the importance of a small number of highly paid jobs in an area where they did not exist.
Sammy Wilson
Does the hon. Gentleman also accept that many of the studies in Scotland have shown that the onshore wind industry and the way that it despoils the landscape have taken away many tourist jobs?
Callum McCaig
I have heard that asserted year in, year out, but, as far as I understand it, the tourist sector in Scotland is doing very well. It continues to do well and it is a major sector of growth in the Scottish economy, so I do not quite understand those assertions. I have read that there is anecdotal evidence—it is no more than that—of somebody saying, “I came to Scotland. I drove up the A9 and didn’t like the wind turbines, so I am never coming back.” Well, somebody else is there to take their place, and there always will be, as Scotland offers world-class tourism that is not in any way “despoiled”—in the words of the hon. Gentleman—by wind turbines.
It is not overly negative to say that genuine critiques can be made. On green energy policy, for example, various things have been done, but the most damaging to the United Kingdom’s reputation and to the financial and investor confidence that is required to secure investment in the UK was the decision at the 11th hour—actually it was even later than that—to pull the plug on carbon capture and storage. Two projects—Peterhead and White Rose in Yorkshire—took part in a CCS competition. Big companies invested significant time and resources on the basis of the supposed good word of the United Kingdom Government. Before they had even had the opportunity to submit their bids, the plug was pulled and the damage was done. We cannot underestimate the impact that that and all the other incremental attacks on green energy policy have had. We are missing a major trick here. As I have said, this is a huge opportunity to grow our economy and our skill base and to do it in differing parts of the United Kingdom. To send out such damaging messages really brings into question the commitment of the UK Government not just to green energy, all the talk at Paris and the global climate change deal, but to the economy and investment more widely.
Finally, let me touch on the Green Investment Bank, which was mentioned by my hon. Friend the Member for Dundee East (Stewart Hosie). It was supported by this party and also by the entire Chamber when it was debated—clearly, that was before I was elected to this place. The bank is a shining example of how we should address market failure. It is how we can ensure that investment is directed to the right areas, and that support is given to nascent industries to help them get off the ground. We have repeatedly criticised what is proposed. Again I say that we will oppose the privatisation of the Green Investment Bank if we do not get cast-iron assurances that its green remit will be protected.
After Paris, the rules of the game have changed, and the UK and Scotland have a chance to seize the benefits. Scotland is ready, but I fear that, as part of Tory Britain, we are being left behind.
Mr Wright
The hon. Gentleman has a fantastic track record of talking about trade and investment, and how we ensure that we boost our sales of exports throughout the world. I will deal with his important point about what we can do in a moment.
In November 2015, the UK’s trade gap was £3.2 billion, while the trade deficit in goods was £10.6 billion. In 2014, UK goods exports fell by 4.1%, which represented the lowest growth rate since the recession in 2009. We were the only G7 economy to experience a negative growth in exports, although it is not all doom and gloom because the north-east still has the only consistent trade surplus in goods. However, as the hon. Member for Dundee East said, there is precious little evidence of a “march of the makers” with modern manufacturing at the heart of a rebalanced economy and providing export-led growth. That is reinforced by yesterday’s Office for National Statistics publication showing that the UK manufacturing sector is now back in recession. I fear that we are sleepwalking back to the long-standing British model, which has been prevalent over the past 40 years or so, of debt-fuelled customer consumption based on an assumption of ever-rising house prices. That did not work in the past—it never has—and it cannot be a model for sustainable and competitive economic growth.
As we have heard several times during the debate, the Government have set a target of £1 trillion of exports by 2020. I genuinely want them to achieve that because it would be good for firms and the country, and would bring about economic growth and broadening prosperity for everyone. However, it is now more or less a given that the Government will fall spectacularly short of their target. Few expect it to be achieved, including the Secretary of State when he gave evidence to the Select Committee. The Office for Budget Responsibility’s “Economic and fiscal outlook” that was published at the same time as the autumn statement forecast the cash value of exports in 2020 to be £647 billion, which is 23% lower than its March 2012 forecast and 35% lower than the Government’s ambition. It is not acceptable for the House, the Government or the country simply to shrug our shoulders and say, “Do you know what? It was a tough target and it’s unachievable, but at least we had a go.” We must be more ambitious than that, but the evidence suggests that the Government have not even had a go. A strong export performance matters, which was why the BIS Committee launched an inquiry into exports and the role of UK Trade & Investment.
I think that I speak for all members of the Committee, several of whom are in the Chamber, when I say that we all want the £1 trillion target to be achieved, but given the enormous shortfall that is forecast, we need a vigorous focus on changing course and embarking on policies that will bring about an improved performance, yet I have not seen the Government demonstrating that there will be such a step change. Will the Minister outline what is being done differently to ensure that we get as close to the £1 trillion target as possible? What active steps are the Government taking to ensure that 100,000 more companies are exporting by 2020?
To respond to the intervention made by the hon. Member for Macclesfield (David Rutley), while the Government do not control this, they can put in place a framework and facilitate the environment. We need to think about what firms are doing. They might have a good domestic market in which they feel comfortable, but how do we ensure that they can put their toe in the water of exports? Businesses will be concerned about whether they know the regulations and laws of a particular country and if they will get paid, so they might think that exporting is too much hassle and that they will stick to the domestic market. However, we need to encourage them to export, and that brings me on to the role of UKTI.
Sammy Wilson
The hon. Gentleman accepts that the target is challenging, but if the Government know, given the OBR forecast, that it might well be missed by 35%, we have early-warning signs four years in advance showing that something needs to be done, so action should be taken.
Mr Wright
The hon. Gentleman is right. Given that we will fall spectacularly short of the target, how will the Government revise their policy on trade and exports to ensure that we do not miss it by 35%, but get as close to £1 trillion as possible? Is UKTI sufficiently proactive about working with British firms to identify and navigate foreign markets? It has been affected by turbulence, with cuts in funding and disruption at the top of its management. Do the Government think that it is fit for purpose?
Kwasi Kwarteng
I take that intervention in the spirit in which it was made. My hon. Friend makes a very good point.
It is not right or fair to argue that our friends in the eurozone have succeeded where we have failed. Their success, in terms of the current account figures, is actually a measure of failure. It is a measure of the fact that their domestic demand was completely crushed by very tight fiscal consolidation measures. Notwithstanding the political rhetoric, we have avoided much of the very severe fiscal consolidation that those countries have experienced.
Sammy Wilson
Does the hon. Gentleman accept that we have suffered partly because of that? Exports to Europe have fallen, while our growing economy has sucked in imports from the countries where domestic demand has been suppressed.
Kwasi Kwarteng
That is an excellent point. It is clear that if domestic demand in those countries has been sharply contracting, their capacity and ability to buy our exports has diminished commensurably, and that has unquestionably made life much more difficult for our exporters. I believe, however, that when it comes to British exports and our trade missions, the most fundamental thing that any exporter or manufacturing concern will seek is a degree of economic stability in the home market, along with a degree of visibility and a degree of responsibility on the part of the Government to ensure that there is some economic stability, and that our problems are being dealt with in respect of such matters as fiscal consolidation and deficits.
Those who speak to businesses, as I do in my constituency and as I am sure many other Members do in theirs, will hear from them that, broadly, the Government’s policy, although not perfect, has been conducive to a degree of economic stability. Policies such as those on apprenticeships and the significant reduction in corporation tax have made life easier, or more attractive, for exporters and business-people in general. When we tackle a debate of this nature, it is very difficult to divorce the issues of trade, the current account and innovation from the general economic strategy the Government are pursuing. It is clear that although many challenges lie ahead a large section of people feel comfortable that the Government are taking the right approach to the economic management of this country. That is an important point to make at the beginning.
As I have noticed in this debate, we talk about abstract concepts such as exports and trade deficits as though we were living in the 1960s or earlier. This language evolved in a period when Britain was the industrial motor of the world—the factory of the world—and it was very much a Victorian model of the economy, which arguably persisted until 1939. But in the economy of 2016 it is very difficult to disaggregate exports in goods from exports in services and from hybrid exported products that are manufactured but have a degree of service element to them. The hon. Member for Hartlepool (Mr Wright) referred to the trade deficits of the 1960s which he had learned from his reading brought Governments down. Every day in the 1960s people looked at the trade figures; that was the big number. The model of the economy today, however, is completely different from that of 1967 or 1970, yet many of our debates are couched in the language, and reflect the concerns, of a bygone era. It has been almost 50 years since the 1967 devaluation and it is crazy for us to conduct this debate as if nothing has happened in the last 50 years.
We should consider the British economy—how wealth is created and distributed, the role of exports, the role of manufacturing. It is true that manufacturing has diminished, for instance, but I would argue that that is in large part a function of the evolving nature of the British economy. The economic history of Britain shows we have gone through lots of different phases. The phase of industry in which we manufactured huge amounts has gone, sadly.
The hon. Member for Sefton Central (Bill Esterson) mentioned the steel industry and said how terrible it was that the Government had not subsidised and protected it. Wolfgang Eder is head of Worldsteel. Current capacity in Europe is about 200 million tonnes, and he says that for it to be sustainable it should be halved. There is overcapacity among European steelmakers. The idea that we can somehow subsidise things endlessly on an unproductive basis is simply wrong.
Sammy Wilson (East Antrim) (DUP)
In any debate of this nature, there is always a tendency of Opposition Members to emphasise the negatives. In her headbutt-the-Opposition-and-kick-them-when-they’re-down speech—I do not mean that as an insult; I am congratulating her, and I quite enjoyed it—the Minister emphasised that we should not talk the economy down. That is true. She highlighted, as many other hon. Members have, the very positive things that have happened: high growth, the creation of a lot of jobs and inflation under control. We should not knock the economy, but equally, I have to say, we should not be complacent about its performance. Some of the headline figures have been good, showing that the Government have achieved some success in their plan for the economy. Nevertheless, there are very worrying underlying trends, and the Opposition and the hon. Member for Dundee East (Stewart Hosie) are right to identify them.
First, we have a problem with our balance of payments. The hon. Member for Bedford (Richard Fuller) asked whether we should worry. Well, of course we should worry. If more money is being taken out of the economy as the result of a balance of payments deficit, that will be deflationary. As was pointed out, the difference has to be paid. The sale of assets or borrowing money from abroad has long-term consequences. If we are not exporting as much as we should, one measure that has been shown to improve the productivity performance of firms is exposure to foreign markets. Productivity and exports are therefore linked and we need to be concerned about them.
The fact that we have a huge deficit with the rest of the European Union answers those who say that, if we decided to leave, the EU would close the door on us. It could not afford to close the door on such a lucrative market as the United Kingdom. That is an important point to bear in mind in the wider debate about EU renegotiation.
Our export performance has been poor. Our productivity performance has been poor. Indeed, it has been described as abysmal. We have been meeting only a tenth of the long-term 2% trend in recent years. That in turn affects our competitiveness and the Government’s ability to bring in tax revenues, so productivity has an important role to play. The fact that we are one from the bottom of the seven major industrial nations in the world should cause us concern.
Another underlying trend we should worry about is the decline in our manufacturing. It is not enough to say the economy evolves and we are moving towards service industries, or that there is less of a distinction between service and manufacturing industries. Manufacturing is important. The Government, in their plan, accept that manufacturing is important. Yet we find that manufacturing output has actually fallen. Measured against the Government’s own criteria, this is another factor we cannot be complacent about.
Finally, as has been well documented in today’s debate, there is a dependence on consumer demand for growth. Even the Chancellor seems to have either ignored this or tried to play it down. Why we should be concerned about Government debt, which is 80% of GDP, yet have no concern about consumer debt, which is 145% of gross disposable income, is beyond me. If public sector debt is not a good basis for growth then private sector debt is not a good basis for growth either, unless of course we can say it is going into the kinds of areas that are productive and yield a high return. We cannot afford to be complacent, and it is wrong of Conservative Members to attack those who raise the issue today by saying they are somehow or other being disloyal or hurting the economy. We have to try to get these things in perspective, and although there have been successes, which I hope I have at least acknowledged, there is no cause for complacency.
Let me look at the issues that need to be addressed, the first of which is productivity. The Government’s seven-point plan in “Fixing the foundations” highlights a whole raft of issues. There will be an important role for the private sector in some of them—investment by the private sector and training workers—and the apprenticeship scheme is putting more and more emphasis on the private sector, but many of the measures listed will require public investment. We need to make a distinction when we talk about borrowing and Government spending. If public investment can yield a return, why is borrowing for that purpose a bad thing? Borrowing is not a bad thing for firms or households to do if it provides a return, so why should that kind of borrowing somehow be lumped with all general Government borrowing, so that the Government can say, “Look, we can’t afford to do it”? If it brings a return, it is important. Whether the Minister has admitted it or not, “Fixing the foundations” indicates that substantial public investment will be required to build up the infrastructure needed to increase productivity.
Increasing exports is the second issue. Ministers in the House of Lords have
“pledged to mobilise the whole of government behind exporting, working alongside a more effective UKTI and better export finance.”—[Official Report, House of Lords, 21 July 2015; Vol. 763, WA15.]
I wonder whether the Government have really lived up to that rhetoric. Yes, there are difficulties with Europe, but Europe is not the only market. Indeed, let us look at the growth in world trade. Why do we have such a small proportion of that additional trade? Firms would tell us one of the reasons for that. Eighty per cent. of them do not export anyway, sometimes because of regulation. Some of it cannot be avoided if it is overseas, but some of it could be dealt with by changes here. The Government could make regulations on exporting goods less onerous.
How much do we use our network of embassies across the world when it comes to introductions to markets? There is a role for regional government to play in that. In Northern Ireland, our exports have gone up by 4% in the last year, but that has been the result of hard work by Invest NI, and there are lots of different ways of doing it. We now have the friends of Northern Ireland—expatriates and people who have studied in Northern Ireland and then gone back home—to look at contacts in markets that we want to target. Can we use that network on a more UK-wide basis? Do we make full use of the contacts that our embassies have? I know that trade missions from Northern Ireland have sometimes found embassies to be less than helpful. How can we take those initial steps? Many firms will say that they need to go out to a market two or three times before they start making contacts, which is expensive, especially for small and medium enterprises. What help can be given with that?
The last issue is boosting manufacturing industry. A number of contributions today have highlighted the issue of energy costs. The steel industry is only one example, and in Northern Ireland recently we have lost a lot of jobs from huge employers who cited energy costs as one of the main reasons. There appears to be a schizophrenic attitude, even from the Government. Although they are removing subsidies from the most expensive form of electricity generation, even today at Question Time the Prime Minister, while on the one hand saying it was more expensive to produce green energy, boasted about the amount of green energy in the pipeline that would be introduced in future. If that is the aim, let us be honest: we will find that we make it difficult for some kinds of manufacturers. It is significant that onshoring in the US has occurred as energy prices have come down. That is a lesson for us.
I shall try to abide by your ruling, Madam Deputy Speaker. I have had my 10 minutes. I trust that the Government will take this debate seriously. I accept that there is a role for regional government to play in Northern Ireland. We are reducing corporation tax, for example, and we believe that the devolution of air passenger duty for long-haul routes has been important in extending our ability to attract inward investment and bring inward investors into Northern Ireland by reducing the cost of travel. We have undertaken some other measures, but only the central Government can deal with the national measures that are beyond our control.