Trade, Exports, Innovation and Productivity

Debate between Tasmina Ahmed-Sheikh and Jeremy Quin

Wednesday 13th January 2016 Commons Chamber

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

I rise to speak in favour of the motion in my name and that of my SNP colleagues, and I declare an interest as vice-chair of the all-party group for trade and investment.

I thank all Members for their contributions to this interesting and varied debate, and I will try to mention everybody if time allows. The Minister spoke of a long-term economic plan and of caring and compassionate Conservatives, but those worn-out phrases mean nothing to poor and vulnerable people up and down this country who this Government have targeted in a relentless onslaught through austerity of choice, not necessity.

I agree with the hon. Member for Sefton Central (Bill Esterson) that the NHS should be exempt from TTIP, and we must always protect our public services. I agree with the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) on the importance of UKTI, but unfortunately the Chancellor slashed the budget for that in his autumn statement. My hon. Friend the Member for Aberdeen South (Callum McCaig) made an excellent speech about the bright future for our oil industry, but it requires help from the Government during what we hope will be a temporary downturn. He spoke of Aberdeen being a city of innovation that filed more applications for patents in 2014 than anywhere else, and he mentioned the importance of the Aberdeen city deal, and called on the Government to consider that quickly and favourably. He said, however, that the UK Government had taken a hatchet to one of the biggest global growing markets of the century: renewable energy. We should build on an industry that we can be proud of, and develop the skills we need—ambition, Mr Speaker.

I wholeheartedly agreed with the hon. Member for Cannock Chase (Amanda Milling) when she spoke about the need for investment. She quoted from the Treasury document, “Fixing the foundations”, but failed to mention that UK investment as a percentage of GDP has been well below the OECD average since 1960, only surfacing briefly in 1990, as per the graph on page 15. I was pleased to hear her support for the cut to air passenger duty, which the Scottish Government will introduce, and she suggested to the Minister that that measure be considered elsewhere.

The hon. Member for Hartlepool (Mr Wright), Chair of the Business, Innovation and Skills Committee, agreed with every word of our motion, and we are delighted to have that support. He went even further and spoke of the value of our relationship with the EU, and its importance for trade. He also referred to the “dire and woeful” performance of the Government, who are sleepwalking back to the old British model, which cannot be a model for sustainable and economic growth.

The hon. Member for Bedford (Richard Fuller) suggested that this country had consistently rejected socialism. Not in Scotland—just look at the SNP Benches. He also seemed to suggest—surely this must have been in jest—we have not gone bust so things must be okay. Such poverty of ambition. My hon. Friend the Member for East Lothian (George Kerevan) spoke of the success of Ireland’s export record, and said that although we should have been turning around our export performance, we have failed in that. As he said, given the current account deficit as it stands, all warning lights should be flashing brightly.

The hon. Member for Spelthorne (Kwasi Kwarteng) spoke of the challenges ahead and the diminished role of manufacturing. He sees that as part of the evolving nature of the British economy, but we should be looking to revive manufacturing, not making excuses for where it is just now.

We heard from my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), who spoke fluently and with much passion about the digital economy. Innovation is indeed about imagination. He spoke of driverless car technology as an opportunity to connect people in a different way and how very important it is for women and girls to have the chance to seek opportunities in new areas of technology.

The hon. Member for Macclesfield (David Rutley) said that only one in five businesses in this country export, compared with one in four in Germany, and that there were deep-seated issues that needed to be addressed. He did say that good things come from Scotland—many thanks to him.

My hon. Friend the Member for Livingston (Hannah Bardell) spoke with passion, ambition and great intellect about productivity, innovation and investment with a focus on inequality, diversity and inclusiveness. It is worthy of note that not one Government Member spoke about tackling inequality. Investment in human capital is important, too. It is not just about paid employment but the contribution of others in different ways: as volunteers, carers and activists. Some may not fit, she said, into the Government’s view of what is productive, but that does not mean that everyone does not have something to offer.

The hon. Member for Horsham (Jeremy Quin) paid tribute to some of Scotland’s inventions, in particular the overdraft, which he had been unaware had been invented by a Scot. Well, thank goodness for that. What would the Government do without it?

The view of the hon. Member for East Antrim (Sammy Wilson) was that while we should not knock the economy, we should not be complacent about it either. He acknowledged that we have a problem with our balance of payments.

We then heard from the hon. Member for Gloucester (Richard Graham). He spoke, in his opening lines, about the doom and gloom of speeches. I was certain he was talking about his own colleagues, but he then directed his comments at SNP Members. Surely, there must be some mistake! He did, however, mention the Commonwealth games and highlighted their success, for which we are very grateful. He started to mention the financial contribution of the UK to the games. For those not in the Chamber at the time, the answer is: nil.

The hon. Member for West Bromwich West (Mr Bailey) spoke of the overstatement of the Government’s success, in particular in relation to zero-hours contracts, owing to the lack of productivity and the weak export performance. The hon. and learned Member for South East Cambridgeshire (Lucy Frazer) talked about expertise in universities, but failed to recognise that a smaller proportion of UK businesses intend to collaborate than is the case with our international competitors.

My hon. Friend the Member for Kirkcaldy and Cowdenbeath (Roger Mullin) delivered an excellent speech, in his own inimitable fashion, on science and innovation, and the need for investment in that respect. The hon. Member for Bexhill and Battle (Huw Merriman) spoke about the importance of high-speed rail, but did not go far enough to suggest that Scotland should have access to it. Why ever not?

My hon. Friend the Member for Edinburgh West (Michelle Thomson) spoke of the lack of a UK strategy and the comparison with the Scottish Government’s strategy, the benefits of which we can see in action. It is about attitude and ambition, she said. I could not agree more.

Scotland is the best place in Britain to do business. The SNP Government have delivered success for Scotland’s economy. The value of Scotland’s international exports has increased by about 40% from £20 billion to £27.9 billion. In each year since 2006, the Ernst & Young attractiveness survey has ranked Scotland in the top two regions outside of London for foreign direct investment in terms of number of projects secured. In the past six years, business research and development spending in Scotland has increased by 29% in real terms to £797.7 million, compared with just 3% in the UK in the same period. I appear to have lost the attention of some Government Members. I do hope I can regain it quickly.

The cornerstone of Scotland’s successful economy, of course, has been our membership of the European Union. Scotland’s EU membership has been a vibrant source of social, cultural and economic benefit for Scotland over the past 40 years. It is a vital export market, so why would the Tory Government take our country to the brink of leaving this successful partnership?

[Jeremy Quin]

As I understand it, about 17% of Scots exports go to the rest of the EU and about two-thirds go to the rest of the UK. I am sure the hon. Lady will be equally fond of retaining the better Union—better together.

[Ms Ahmed-Sheikh]

It actually works both ways. It is not just Scotland exporting to the rest of the UK; exports come up the other way too, but I thank the hon. Gentleman for his intervention none the less.

Scotland is ready to do business with the world, but this Government are giving the impression that we, along with the rest of UK, are closed for business. What message does it give to the world when our UK Government talk a good game about our commitment to the historic climate change agreement reached in Paris, but simultaneously pull the plug on millions of pounds of investment in our renewables industry through their actions on the renewables obligation? How badly is the reputation of Scotland’s world-class universities damaged in the international market to attract the brightest and best by a regressive position on post-study visas? We seem to be moving from one extreme to another, closing the doors to some and opening them to others in the name of trade at all costs, whether that is in relation to arms that may be being sold illegally or not ensuring that human rights are at the top of the agenda when we negotiate trade deals.