HC Deb 05 June 1997 vol 295 cc532-3
3. Dr. Alan W. Williams

To ask the President of the Board of Trade what measures Her Majesty's Government intend to take to improve (a) the competitiveness and (b) the trading position of British companies within the European Union. [657]

Mrs. Beckett

The Government will work in partnership with business to improve the country's competitiveness and trading position. For instance, during our presidency of the European Union next year we intend to complete the single market. That will be particularly important in areas such as telecommunications, air travel and financial services, where there are great opportunities for British business which will stimulate competition and give the customer a better deal. We will also take steps to improve the effectiveness of Government support for exporters.

Dr. Williams

I congratulate my right hon. Friend on her appointment. Does she accept that the increase in the value of the pound—16.5 per cent. since last August, taking us back almost to pre-black-Wednesday levels—poses a threat to our competitiveness?

Mrs. Beckett

As my hon. Friend knows, concern has been expressed about some of those issues, but he also knows that the root of competitiveness and long-term prosperity for Britain is the cultivation of economic stability. Lack of economic stability was a sharp feature of the previous Government's record. We believe that actions taken recently by my right hon. Friend the Chancellor of the Exchequer will contribute to stability, which in turn will contribute to an overall competitive position—and that includes exchange rate issues.

Mr. Wilkinson

In greeting the right hon. Lady in her new position at the Dispatch Box, may I ask her how the adoption of the social chapter, the imposition on British companies of the provisions of an employment chapter from Brussels, and the idea that Brussels should have the power to impose sanctions on British companies which do not obey the diktats of Brussels, can possibly improve the competitiveness of British companies in the European Union and world markets and improve employment possibilities in British firms?

Mrs. Beckett

As I am sure that the hon. Gentleman is well aware, we very much take the view that future competitiveness and future success for Britain lie in encouraging quality. The Government's view is that the attitude that we adopt to issues such as the social chapter and to any proposals for an employment chapter will be governed by what we believe to be in the interests of Britain's competitiveness. We believe that quality and skills are very much at the heart of that.