Special Representative for International Trade and Investment

Stephen Phillips Excerpts

Wednesday 4th May 2011 Commons Chamber

[Paul Flynn (Newport West) (Lab)]

I speak under negative privilege. Privilege is given to us as MPs to expand our opportunities to make comments and talk about personalities while enjoying protection from libel laws. The situation that I am speaking under is one that does not expand our opportunities, however, because on this subject I am denied the opportunity of saying what I am entirely free to say in broadcasts or on blogs outside this House. In this House my mouth is bandaged by archaic rules that deny me the chance to be critical of certain individuals. I can be sycophantically, emetically in praise of those individuals—that is not limited in any way—but I am not allowed to criticise them. I therefore make the point that I am speaking under constraints that I hope we will remove at a later date. This debate is, I believe, a step on the way towards tabling a motion that will liberate us as MPs to talk freely about subjects that are discussed throughout the country.

The role of the special trade representative has been a matter of great controversy, discussion and debate. It is a hot topic everywhere, in the newspapers, in the pubs and on blogs, but the only place that we cannot discuss it fully is in this House—the place where we should be allowed to do so, because we can do something to reform the role if necessary. The role is a very strange one. There is no wage paid, but it is claimed that our present trade envoy has cost the taxpayer about £4 million in the last 10 years, not including the costs to protection officers. What is the job? It is impossible to find a job description, but one might say that skills in diplomacy, expertise in trade and industry, and sensitivity about our ethical standing would be needed in such a job.

The present envoy was appointed to his role by Her Majesty the Queen after consultation with the Cabinet Office, UK Trade & Investment, and the Foreign and Commonwealth Office, and he was given the title of UK’s special representative for international trade and investment. Is there a problem with the position at the moment? There certainly appears to be a problem with the lack of competition for the job. There is no open competition; there is no pre-appointment hearing or anything of that kind; and there seems to be only one qualification—namely, membership of a certain family, as the job was inherited from another member of that family.

Are there any matters that deserve our concern? Many groups have suggested that there are. A coalition of human rights groups is calling for a review into how the Government do business with non-democratic regimes around the world. Those groups say that the Government’s stated position on human rights, corporate responsibility and the rule of law is at odds with their apparent position of trading with autocratic or corrupt politicians. Human Rights Watch, Index on Censorship, the Corner House, Global Witness and Campaign Against Arms Trade say that recent publicity has underlined fundamental failings in this country’s supposedly ethical foreign policy. Tom Porteous, the UK director of Human Rights Watch and a Foreign Office adviser, said that recent publicity was making the UK “look stupid”.

Those calls for action follow concern about delays in implementing the Bribery Act 2010—delays that have left the Government open to claims that they are not really committed to fighting corruption. Campaigners allege that they have yet to receive a response from the coalition’s international anti-corruption champion, the Justice Secretary, after requesting details of the Government’s strategy on tackling dishonest business practices.

Tom Porteous, a member of the Government’s advisory group, which was created by the Foreign Secretary, and someone whose job is to examine the ethical dimension of British foreign policy, said that Ministers needed to rethink their way of doing business. Nicholas Hildyard of the Corner House has said:

“There is an absolute necessity to have an ethical foreign policy with very strict screening into what goes where, proper screening of all government-supported exports in the context of human rights.”

Robert Palmer of Global Witness makes a similar point. Richard Alderman, the director of the Serious Fraud Office and a key figure in cracking down on business bribes to win contracts, told the Home Secretary of growing concerns over the delays in implementing the Bribery Act. He reported warning that the Organisation for Economic Co-operation and Development and the US Justice Department had been unhappy with the coalition’s decision to push back the legislation’s introduction.

Those are bodies of great seriousness, and they are expressing concern about the present situation. Rather more telling, however, is the evidence from Stephen Day, a former ambassador. He writes:

“The suggestion that an envoy is needed to ‘open doors’ is insulting to our ambassadors. Has that not been their primary job, as representatives of the Queen to foreign Heads of State? And are they not fully competent to support serious business proposals, as welcome to the host country as they will be to Britain? Trade promotion is a serious, long-term commitment, in which the embassy can give the best informed guidance and work effectively in partnership with the British enterprise and in step with Whitehall and other agencies to consolidate reputations and build long-term success. The message being spread around the world at the moment is that Britain is so desperate for business, and so incapable of competing openly, that it needs a back-door approach and is content to work closely with dodgy fixers and politicians—i.e. that British business is incapable of winning contracts through professional, legal means .”

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

I hear what the hon. Gentleman is saying about the message that is being given out at the moment, but he has given us no details of how it is being given out. In the absence of any evidence as to how it is being given out, I have to say that the House is very surprised not only at the message that he suggests is being given out but at the fact that it is being given out at all. Will he give us further details?

--- Later in debate ---

[Paul Flynn]

That is a wonderful example of how the hon. and learned Gentleman is free to praise the person involved, while I am denied the opportunity to attach any blame to him. It is entirely irrational and anti-intellectual, and contrary to the debating freedoms of this House that I am not allowed to answer his question or repeat the criticism that has appeared in almost all our national newspapers and media of the way in which that role is performed. I cannot do that, and that is the weakness that I wish to attack in this debate. I can, however, talk about the role and the opinion of certain serious people.

[Stephen Phillips]

May I suggest that the hon. Gentleman pushes the point? The Chair will no doubt rule on that. If he seeks to make the criticism that he suggests he is prevented from making and the Chair prevents him from making it, his point will be made good. If the Chair does not do so, his point will have been wholly undermined.

[Paul Flynn]

I am making the points as far as I can within the limits imposed on us in this Chamber. I first debated this subject on 17 March and hope to contribute to a debate tonight that will be within the rules of the House and will lead to a notice of a motion, which I hope I can get carried.

[Stephen Phillips]

For the final time, the hon. Gentleman has an opportunity either to press his points and make the criticism he seeks to make or to evade that criticism by not making the point at all. He has that opportunity and if he steps beyond the bounds of what is permitted and what is in order in this Chamber, the Chair will rule on it. As yet, he has not sought to make that criticism. As and when he does so, the Chair will make a ruling. Is he prepared to stand by the mettle of the argument he is making or—

--- Later in debate ---

[Mr Davey]

As I recall it, the hon. Gentleman said that he was objecting to the cost of this post, so I am rebutting his argument, which he was free to make within our Standing Orders, by arguing that the duke’s work provides value for money. I am rebutting that point of substance.

Let me now deal with the duke’s appointment to this position. We are sometimes asked: what are the terms of the duke’s employment as special representative for international trade and investment? Does he have a contract? The hon. Gentleman wanted to have a job description and competition for the role. We are also asked who invited the duke to take on this job. In response, I wish to make a number of key points. First, the role is not an appointment within the remit of the civil service commissioners or the Commissioner for Public Appointments. It is a special role and it represents a continued interest by the royal family in supporting British business and international trade. Prior to the Duke of York’s appointment, the Duke of Kent was vice-chair of the British Overseas Trade Board from 1976 and latterly vice-chair of British Trade International until April 2001—the Duke of York was appointed in October 2001. So the royal family, in different roles and in different personages, have been fulfilling this type of role for many years. This is not a new thing and successive Governments of different persuasions have found this work to be valuable. Diplomats and business people in our country have valued the contribution made by the royal family in this regard.

[Stephen Phillips]

My hon. Friend makes the legitimate point that many organisations and British business have found this role to be valuable for how they conduct business overseas. This year, many British businesses have recorded in the printed media that they have found in the recent past that the role of the Duke of York—they made no reference to his specific conduct—to be useful to the way in which they have conducted their business and their exports overseas. I am sure that the Minister would agree with that.

[Mr Davey]

My hon. and learned Friend is absolutely right and I can certainly agree with that. It is also worth pointing out that the Duke of York not only helps UKTI and its related activities but assists in the objectives of other Departments, such as the Foreign and Commonwealth Office and the Department of Energy and Climate Change, when he is asked to do so.

The duke’s programme of visits is agreed by the Royal Visits Committee. A great deal of discussion and planning go into deciding where His Royal Highness should visit and UKTI works with the duke’s private office to develop a programme of visits that complement the work and support the objectives of UKTI and make best use of the duke’s time to support the strategic aims and goals of Her Majesty’s Government. It is not a question of the special representative freelancing: he plans his programmes to operate within a strict framework. The programme is reviewed regularly and is confirmed alongside other overseas visits undertaken by other members of the royal family and by senior politicians such as the Prime Minister, Foreign Secretary and Business Secretary.

The duke’s visits focus primarily on those priority markets for the UK where the duke is well placed to make a positive impact. His visit programmes generally include visits to priority markets in the middle east, south-east Asia, China, India, Russia, central Asia and South America, as well as to the US and other developed markets. The visits relate to sectors that are or will be key to the UK’s future export growth. They include financial services, energy, advanced engineering, information and communication technology, life sciences and creative industries.

The duke has been visiting many of those priority global markets since 2001 and has developed strong relationships with key opinion formers and decision makers. For example, in 2008-09, His Royal Highness undertook nine overseas visits, visiting 16 countries. These involved 117 business engagements and openings, 27 political engagements and 28 with Heads of State. In 2009-10, His Royal Highness undertook 12 overseas visits, visiting 18 countries. This involved 163 business engagements and openings, 39 of which were political and 18 with Heads of State. This is a record of engagement that this House should recognise.