§ Lord Campbell of Croy asked Her Majesty's Government:
§ What further encouragement they are giving to British firms to increase business with Eastern Europe.
§ The Parliamentary Under-Secretary of State, Scottish Office (Lord Strathclyde)My Lords, Her Majesty's Government seek to help British companies to explore opportunities in Eastern Europe by including businessmen in ministerial visits; by providing advice on changing trading conditions and legislation; and, where possible, information on specific opportunities. The most recent initiative was the publication earlier this month of a free introductory guide on trading with Central and Eastern Europe.
Lord Campbell of CroyMy Lords, I am grateful to my noble friend for that reply. Are the Government satisfied that Britain is doing as much as other western countries with the objects, first, of giving crucial support to the economies of certain Eastern European countries, and, secondly, of increasing our international trade?
§ Lord StrathclydeMy Lords, in the promotion of exports we can never afford to be totally confident that we are doing enough. The Government are doing their bit. They are continually reviewing the support which they offer to exporters and they believe that in the long term the future will be good.
§ Lord Taylor of GryfeMy Lords, will the revised arrangements for the Export Credits Guarantee Department, which were announced in the gracious Speech, place British firms at no disadvantage in relation to their competitors in this market?
§ Lord StrathclydeYes, my Lords.
§ Lord Clinton-DavisMy Lords, would the Minister be kind enough to confirm that British companies are very badly placed and are seriously lagging behind our industrial competitors in regard to trade with Eastern Europe at the present time? In order to remedy that situation, are the Government taking a positive attitude towards recent European Commission initiatives to stimulate the European Community's reinsurance pool to assist export credit insurance and other initiatives that have been taken to stimulate investment?
§ Lord StrathclydeMy Lords, on the question of money from the European Community, we play a full part in the PHARE programme which is currently worth some 500 million ecus. On the know-how fund, 676 we have a good record of increasing the amount of finance going to Eastern Europe. The noble Lord asks about exports. Over the past year exports to the USSR have increased by 30 per cent. and are up by 22 per cent. in the first seven months of this year.
§ Lord Harmar-NichollsMy Lords, does my noble friend agree that if someone suggests that British industry is lagging behind its competitors he ought to produce evidence to show that that is so? My noble friend's figures seem to give the opposite message.
§ Lord StrathclydeMy Lords, it is typical of the Opposition to talk down British industry.
§ Lord Clinton-DavisMy Lords, far from talking down British industry, which was a rather trite and cheap comment, is it not a fact that we all have an interest in seeking to stimulate British industry? Is it not a fact that, as concerns trade with Ea stern Europe, British companies are lagging in eighth place compared with other Western European countries? Will the Minister reply specifically to the question that I asked? The European Commission has recently proposed a number of valuable initiatives which deal with export credit and investment. What is the Government's attitude with regard to those initiatives?
§ Lord StrathclydeMy Lords, perhaps the noble Lord did not hear what I said in my original answer to him. The European Community has the PHARE programme in which we play a full part.
§ Lord Campbell of AllowayMy Lords, further to the question of my noble friend Lord Harmar-Nicholls, can my noble friend confirm that there is no evidence that we are lagging behind our competitors in this regard? With respect to the noble Lord opposite, that is a wanton allegation.
§ Lord StrathclydeMy Lords, I entirely agree with my noble friend. Exporters can always do more to increase their exports. This Government are involved in trying to provide the right economic conditions in this country so that they can do so. But all European countries have difficulties in exporting to Eastern Europe, mainly because Eastern European countries have little hard currency.
§ Lord Cledwyn of PenrhosMy Lords, is it not the case that the Commission has made a number of specific proposals which were published on 16th November? It would not be proper for me to go into them in detail, which I could do. I am quite prepared to pass them to the Minister. Will he answer the question put by my noble friend? Do the Government subscribe to these proposals, and are they cooperating within the Commission to make sure that they are implemented?
§ Lord StrathclydeMy Lords, a whole range of trade and economic co-operation agreements have been signed with each individual country of Eastern Europe. They provide for greater access to the Common Market. We support the proposals.
Viscount St. DavidsMy Lords, can the noble Lord give any detail of how we are encouraging the teaching of English where we are pushing at an open door? Is that not a marked way of increasing British exports?
§ Lord StrathclydeMy Lords, I agree with the noble Viscount. The United Kingdom was the first to announce bilateral assistance with the establishment of £75 million in the know-how fund. That is specifically aimed at helping Eastern European countries to help themselves in respect of marketing initiatives, learning the language and building up business skills.
§ Lord KeartonMy Lords, is the Minister aware of the excellent work being done by the Eastern European Trade Council under the chairmanship of Dr. Norman Wooding?
§ Lord StrathclydeMy Lords, I am sure that that organisation and the gentleman to whom the noble Lord has referred are well known to the Department of Trade and Industry.