HC Deb 11 May 1994 vol 243 cc312-5
13. Dr. Goodson-Wickes

To ask the President of the Board of Trade what recent representations he has received about the promotion of British exports overseas.

Mr. Needham

I have received many representations praising the successful partnership between the Department of Trade and Industry and British exporters in overseas markets.

Dr. Goodson-Wickes

Does my hon. Friend agree that, rightly or wrongly, there is among British business men a widespread perception that too many of our embassies are better equipped to promote genteel diplomacy and cultural relations than aggressively to pursue British commercial interests? Can my hon. Friend, knowing the commitment of my right hon. Friend the President of the Board of Trade to putting British interests first, expand on what further steps might be taken to make a profound cultural change?

Mr. Needham

I do not agree with my hon. Friend, in that I think that the commercial posts overseas are professional, dedicated and extremely well run. I spend most of my life visiting them. As I thought that my hon. Friend might raise such a question, I have here 16 examples of letters written within the last month by companies praising the work of the commercial sections of our embassies. Of course, not every one of them is perfect, but 16 letters in a month is not a bad record. The partnership between the export promoters, the Department of Trade and Industry market branches and the commercial posts overseas that now exists is providing our exporters with an unrivalled service. In 1992, the Brooking Institute said: Perhaps the most clearly presented and coherently marketed package of export assistance programmes is that of the United Kingdom.

Mr. Tony Banks

As this question is about exports can the Minister tell us what is the current visible trade deficit? When was our trade last in surplus?

Mr. Needham

I cannot give the hon. Gentleman the exact figures. However, I can say that the current trade deficit is about 1.5 per cent. of gross domestic product. When trade was in surplus, the maximum under the last Labour administration was about 1.25 per cent. It is a very small percentage of our total trade. The fact is that we export 20 per cent. per head more than the Japanese and 80 per cent. per head more than the Americans. In export performance, we have the fifth highest figures on earth, with 1 per cent. of the world's population. Perhaps the hon. Gentleman will start giving our exporters some praise.

Mr. Nigel Evans

An area in which we hope to do well in future will be that of aerospace exports. Will my hon. Friend take this opportunity to congratulate the skilled work force in Lancashire that is employed by British Aerospace and by many small contractors and which is involved in the production of the Eurofighter 2000, which had its international debut at Warton in Lancashire last week?

Mr. Needham

I would be delighted to do what my hon. Friend asks.

Mr. Bell

The House will welcome the Minister's statement about trade with Vietnam and the fact that he has encouraged our exporters to penetrate that market. What about that other tiger economy of Malaysia? Have we reminded the Malaysians that they have a £1.3 billion surplus with our country? Have these matters been taken up with the European Union? Have they been taken up with GATT negotiators? Where are we with the Malaysian Government?

Mr. Needham

I can say to the hon. Gentleman—not to him personally—that one of the major causes of getting into disputes with Malaysia are the comments and activities of some of his hon. Friends.

Mr. Forman

Is not one of the best ways to promote British exports to draw attention to some startling and positive facts that have emerged recently, including the fact that the UK machine tool industry was in surplus in 1993 on its balance of trade and that machine tool exports to the United States increased by nearly two fifths over the previous year?

Mr. Needham

My hon. Friend is correct in asserting that there are many sectors of British industry that are not merely world competitors but world beating. The only thing that stands between them and their continuing success is the possibility of Opposition Members being put in charge of our economy.

16. Mr. Fabricant

To ask the President of the Board of Trade what arrangements he has made to recruit the expertise of exporters in the private sector to assist his Department to promote generally British exports.

Mr. Needham

The President and I have invited leading United Kingdom companies and business organisations to second to our Department high-calibre senior managers with export expertise. These companies have responded very positively. We have recruited nearly 80 of these people and more are on the way. We are confident that some companies that have not yet seconded an export promoter will do so shortly.

Mr. Fabricant

I am grateful to my hon. Friend for his reply. It demonstrates, possibly, why there has been such an improvement in recent years in the promotion of exports by our embassies overseas. Is my hon. Friend aware, however, that one of the major industries in my constituency of Mid-Staffordshire is the pottery industry? He will be aware that Wedgwood has its headquarters in Barlaston, and that the well-known sanitary ware manufacturer of the name of Shanks in the town of Armitage—

Madam Speaker

Order. The hon. Member might save his descriptions for a debate on trade and industry and put his question now.

Mr. Fabricant

So what is my hon. Friend doing to promote sanitary ware and china ware overseas?

Mr. Needham

If my hon. Friend went to the countries round the world that I have visited he would not have to worry about the promotion of sanitary ware. As for fine china, we have established within the Department of Trade and Industry a group of tabletop manufacturers under the chairmanship of Royal Doulton to examine exactly how we can bring linen, cutlery, glass and china companies together to promote our exports across the world, and not least to ensure that all our embassies have the very best of British when anyone visits them.

Mr. John Evans

Given the enormous amount of fence building that the Tory Government and Tory Ministers will have to undertake with the African National Congress, what steps has the Minister taken to improve and increase Britain's trading links with the new Government of South Africa?

Mr. Needham

My right hon. Friend the President of the Board of Trade will be leading in the near future a major delegation of British companies to South Africa. The South African market has enormous opportunities for us. We are in the process of completing a strategic market plan for South Africa. We are analysising those sectors in which British companies can offer the best product, the best services and the best consultancies. The South African market will be a major target market for the Department of Trade and Industry, in partnership with British industry.

Mr. Steen

I am grateful to you, Madam Speaker, for giving me the opportunity to ask the Minister whether he is aware that exports will not be helped if we adopt the European Community circular of directive 92/58 which insists that, by 24 June, all exit signs for fire safety are replaced by those depicting a little man running downstairs, because they will create additional costs for all our manufacturing industries, our town halls, the House of Commons and every library and information centre in the country.

Mr. Needham

I think that I can safely leave that question to my hon. Friend the Parliamentary Under-Secretary of State for Corporate Affairs who is very good at finding signs of little men running downstairs.