§ 5. Mr. Kenneth Carlisleasked the Secretary of State for Trade and Industry whether he will review the help given to industry by his Department to secure large overseas contracts; and whether he will make a statement.
§ Mr. TebbitI am examining the advantages and disadvantages in terms of the national interest of assistance of this kind.
§ Mr. CarlisleIs my right hon. Friend certain that the help that his Department provides for our exporters at least matches that provided by our overseas competitors? In particular, does the projects and export policy division within his Department, which was set up in 1980, with great success, to co-ordinate our efforts to win orders, still have the resources and scope that it needs? Does he agree that many jobs depend on our success in that area?
§ Mr. TebbitYes, indeed. The projects and export policy division in my Department, which was set up at the instigation of my right hon. Friend the Member for Hertsmere (Mr. Parkinson), is in charge of co-ordinating Government help in the pursuit of major projects — diplomatic help, ministerial visits, ECGD cover, the use of overseas aid, and the bringing together of commercial finance. It does a good job and has had many spectacular successes.
§ Mr. WeetchDoes the Secretary of State realise that while many small and medium-sized British firms make substantial efforts to improve their export performance, they face problems? Will the right hon. Gentleman accept from me that in Ipswich, where I have talked to the management of such firms, one of the principal problems they face is the expense of keeping salesmen in the field for extended periods? They have to meet travelling expenses and the cost of staying abroad. Is there anything that his Department can do to assist such firms, especially as in many parts of the world, such as Germany, Japan and France, they come up against determined sales competition?
§ Mr. TebbitTo start to go into that area of subsidy would, indeed, be to open a new round in international warfare in subsidising trade, but through the BOTB, through the fairs division, for example, great assistance is given to British business men who want to take part in overseas fairs and exhibitions.
§ Sir Anthony GrantWill my right hon. Friend bear in mind in this context the importance of a competitive export credit policy, because his hon. Friend's answer to our hon. Friend the Member for Southampton, Itchen (Mr. Chope) was not wholly convincing? Many industries which have to work on this task find that the French, in particular, and many other countries, are able to muddle up trade and aid much more skilfully, apparently, than we are. Will he please look at this matter again, as it is very important?
§ Mr. TebbitI am not sure whether this will comfort my hon. Friend, but when Mrs. Cresson, the French Trade Minister, came to see me recently she had some criticisms to make of the extent to which we do the things of which we so often accuse the French. I think that her criticisms were entirely without justice, of course, but I have to say that we offer very competitive terms, and that is one of the reasons why we do better than the French at exporting.
§ Mr. BellWhen the Secretary of State is reviewing the help given to industry for overseas contracts, will he take into account the document which has been published in the north-east entitled, "A response for a strong north", which has the support of the CBI and the northern region TUC, and is gathering support from other bodies in the region? When this document reaches his desk, will the Secretary 242 of State give favourable consideration to it, given that it will help us to secure overseas contracts and to increase and enhance the prospects of investment in the north-east generally?
§ Mr. TebbitI should be unwise to say that I shall give favourable consideration to a document which I have not yet read, but I shall certainly give very careful and serious consideration to it.
§ Mr. John TownendDoes my right hon. Friend accept that, regrettably, there is a tendency for trade with Third-world countries generally to be conducted on a basis of barter? Recent figures show something like 25 per cent., which could increase. Where British firms are faced with this problem, in what way can my right hon. Friend's Department help?
§ Mr. TebbitSo far as we can, we discourage other countries from going into barter trade, and therefore, where we are giving assistance, particularly through trade and aid, or through straight overseas aid, we do our best to persuade the countries concerned not to make barter trade a condition of contracts. I think that that is probably the most helpful thing that we can do.
§ Mr. Campbell-SavoursWhat help was given to Cementation International in securing a contract to build a university in Oman, and, in the brief which the Secretary of State provided to the Prime Minister on this contract, was reference made to Cernentation's interest in that contract?
§ Mr. TebbitThe answer to the hon. Gentleman's second question is no, Sir.
§ Mr. SpeakerQuestion No. 7, Mr. Neil Hamilton. Question No. 8, Mr. Robert Adley.
§ Sir William van StraubenzeeOn a point of order, Mr. Speaker. Were you calling question No. 7?
§ Mr. SpeakerI did not see the hon. Member for Tatton (Mr. Hamilton) rise when I called question No. 7, and I therefore moved to question No. 8. I now call the hon. Member to ask question No. 7.