HC Deb 27 February 1985 vol 74 cc324-5
9. Mr. Freeman

asked the Secretary of State for Trade and Industry whether he will make a statement on the budget for export fairs by the British Overseas Trade Board for 1985–86 and 1986–87.

The Parliamentary Under-Secretary of State for Trade and Industry (Mr. John Butcher)

The net expenditure provision for the export promotion services administered by the British Overseas Trade Board is £27.7 million for 1985–86 and £27.4 million for 1986–87. The BOTB set out its provisional allocations of this money to individual programmes, including overseas trade fairs, in a consultation document circulated to industry last December, a copy of which is in the Library of the House. It will be reviewing the allocations in the light of comments received.

Mr. Freeman

Is my hon. Friend aware that shoe exports to the United States are booming at present, but the strong dollar will not last and the industry faces high and unfair tariff barriers against it, particularly in the Commonwealth and in that arch-protectionist country, Japan? Will he therefore ensure, when he sets the budget allocation for overseas fairs, that he targets that money against those countries that unfairly discriminate against us?

Mr. Butcher

I am delighted to hear of any industry that takes advantage of the favourable trading conditions now pertaining arising from the dollar exchange rate, and that the shoe industry in particular is now making its presence felt in that market. I am aware of a number of issues that my hon. Friend has raised on behalf of his constituents. We shall certainly take into account in the current review the comment that he has made.

Mr. Park

Is the Minister aware of the concern of the chemical industry about the proposed changes in the future activities of the BOTB, because it believes that these changes could lead to lesser representation abroad and gaps which individual companies could not fill?

Mr. Butcher

One of the areas of concern has been the change that may result in less support for those who go regularly to the same markets and to the same sort of promotion. I hope that the hon. Gentleman will draw some encouragement from the proposals made by the BOTB, which emphasise the support that should be given to the smaller firms, which are not represented in large measure in the chemical industry but are in most other industries, particularly the first-time visitor to a new market, for whom the contribution is being reduced.

Mr. Michael Morris

In carrying out this consultation, will my hon. Friend make sure that he has up-to-date information on what the French, Germans and Italians offer in this field, because from the evidence that I found in south-east Asia we are not yet competing on equal terms in this area?

Mr. Butcher

It is always difficult to compare like with like. With regard to this type of support measure, we believe that the United Kingdom has a level of support which is more or less par for the course. But, of course, there are other ways in which companies can support their trading efforts, and we keep these under constant surveillance. We are anxious to see that our own exporters have an equal chance when faced with these competitive discrepancies.

Mr. Ashdown

Is the Minister aware that there have been a number of instances recently where high technology firms, seeking to display their goods at export fairs, have been prevented from doing so because of the American Government seeking to apply their law in Britain? What steps will the Minister take to ensure that that does not happen in future?

Mr. Butcher

We have to keep the problem in its proper context. The hon. Gentleman and I had an exchange on it last Friday. Although we have to look after British interests, particularly in regard to new technology exports, we should be aware of the immense efforts that Eastern European countries and the Soviet Union are making to strip out strategic exports, particularly in certain delicate areas of software and information technology hardware.

Mr. Conway

Is my hon. Friend satisfied with the level of co-ordination and co-operation between the British Overseas Trade Board and the regional development associations which sponsor trade missions and the various cultural missions to promote Britain abroad?

Mr. Butcher

I think it is all part of the general package to sell "UK Ltd." effort in the international markets. We are anxious to liaise with and support any measure that enhances the reputation of British goods abroad.