Assistance to Exporters

HC Deb 14 March 1990 vol 169 cc477-8

15. Mr. Galloway

To ask the Secretary of State for Trade and Industry if he has any new plans to help British exporters.

Mr. Redwood

The DTI and the Foreign and Commonwealth Office offer a comprehensive set of services to British exporters in overseas markets. We already have a good range of services in major markets, such as the United States of America, the EEC and the far east. In response to a previous question about Hungary, I announced the way in which we are strengthening our services in certain eastern European markets, especially Hungary.

I am delighted to tell the House that exports increased by 15 per cent. in 1989 on 1988, although some Opposition Members seem to find that difficult to understand. Many exporters consider that sponsored trade fairs, the work of the British Overseas Trade Board and of our posts in those countries greatly assist their export efforts.

Mr. Galloway

That all sounds patriotic, but why are the Government proceeding with the dogmatic privatisation nonsense in relation to the Export Credits Guarantee Department, some parts of which are being privatised while others are left with a big question mark over their future? That is spreading uncertainty throughout the OECD and those who depend on it. Why are the Government advancing with the Union Jack in one hand and the privatisation axe in the other?

Mr. Redwood

It is because privatisation works where other systems do not. That is why it is being adopted world wide to strengthen accountability and to improve services on a broad scale. I have already explained to the House that profitable insurance services are being privatised to bring them into line with EEC requirements, so that they continue to offer a good service to British exporters. The other services that we provide, costing £138 million a year, are welcomed widely by British industry, and exporters are proving to be successful.

Mr. John Marshall

Does my hon. Friend accept that exporters need decent postal services, and that there is widespread dissatisfaction with the quality of those services? Will he encourage his ministerial colleagues to get rid of the Post Office monopoly, which has led to poor quality service?

Mr. Redwood

I am sure that, like everyone else, exporters want high quality postal services. My hon. Friend the Under-Secretary of State with responsibility for postal affairs is present and no doubt has heard my hon. Friend's comments.

Ms. Quin

Does the Minister agree that the prospects for exports have not been helped by recent Government decisions—for example, the strange decision to turn down the invitation to Britain to be special guest country at the Hamburg trade fair in 1992? Will he confirm that the French accepted that invitation since we declined it? Surely the German market is important for our visible and invisible trade now that the latter is also in the red. What does the Minister intend to do to ensure that we do not lose out in that market in the future? When will he take our trade problems seriously?

Mr. Redwood

I have explained the numerous measures that the Government are taking and how the private sector is responding. That is why exports are rising and why we are doing well in many markets around the world. The hon. Lady is not listening to my answers. Many services are on offer; people are taking them up and the results are there for all to see in an improving balance of trade.

Dame Peggy Fenner

Will my hon. Friend keep one of the old plans well in mind? I refer to the assistance to exporters for appearing at trade fairs. I follow the hon. Member for Gateshead, East (Ms. Quin) in this. We are a proud island race with a wonderful boat-building capability. British marine industries are doing very well and they need that extra help so that they can appear all over the world and contest what we fear will be the rise of Japan into that new market.

Mr. Redwood

Yes, of course the Government will support British exporters, as I have already described. As my hon. Friend knows, the British Overseas Trade Board runs a system of sponsored trade fairs, which many British exporters find most welcome.