Internal Market (Hansard, 18 January 1989)

§ 18. Mr. Kirkhope
To ask the Chancellor of the Duchy of Lancaster what progress has been made by his Department in making British business men aware of the opportunities presented by the completion of the internal market in 1992.

§ Mr. Alan Clark
Over 90 per cent. of the firms are aware of the single market challenge. My Department's "Europe Open for Business" campaign is concentrating on encouraging action by firms throughout the country.

§ Mr. Kirkhope
Does my hon. Friend share my concern at the remarks of the deputy director general of the CBI, who has said that he believes that British business men are sleepwalking towards the 1992 opportunities? A recent CBI survey has shown that very few of the largest companies in the country have been doing what is necessary to improve their training facilities and sales organisations, and that only one in five has been reviewing its strategy towards Europe. Does not that suggest that more must be done by businesses themselves?

§ Mr. Clark
Certainly there is always scope for businesses to raise their levels of activity in that regard. My Department, however, carries out a weekly survey of 100 companies with 10 or more employees, and we are now 334 finding that reaction is at least 60 per cent. Favourable—that is, at least 60 per cent. of those interviewed are considering what action they should be taking. The CBI itself is staging a number of conferences and seminars, one of which my hon. Friend will be attending tomorrow.

§ Mr. Henderson
In the course of the Minister's campaign for enlightenment, has he warned the sub-contractors to Ford at Dagenham of the danger to their businesses of the move of the Sierra production line from Dagenham to Belgium? Is that a sign of things to come for much of British business in 1992?

§ Mr. Clark
The commercial decision of the Ford Motor Company is based on such matters as productivity, cost and efficiency. If it judges that an appropriate step, it should be seen in the context of Ford's other investment decisions, notably the investment of £700 million in Bridgend, and it must reflect—to some extent, at any rate—the work practices at the factory from which the line is being moved.

§ Mr. Grylls
Does my hon. Friend agree that most business men would consider one of the most important parts of the 1992 market the opening up of opportunities to sell to continental Ministries of Defence, Post Offices and telecommunications businesses? What progress is being made in opening up Europeanwide procurement so that everyone can have a go at selling to everyone else?

§ Mr. Clark
The public procurement directive is one of the most important of all the single market measures. It will certainly be in place in full by 1992. I emphasise that the inherent dangers are of the same dimension as the opportunities. British companies that have comfortable relationships with, for example, their local authorities may find that they are faced with competition from European firms. They should put themselves in a position in which they are able to compete for public procurement contracts in the Community.