HC Deb 05 June 1997 vol 295 cc529-31
1. Mr. Waterson

To ask the President of the Board of Trade what proposals she has to encourage inward investment. [655]

14. Mr. Fabricant

To ask the President of the Board of Trade what plans she has to encourage inward investment into the United Kingdom. [668]

The Parliamentary Under-Secretary of State for Trade and Industry (Mrs. Barbara Roche)

Inward investment is important not only for the jobs that it brings to Britain, but for the benefit that it brings to local economies.

The Department's invest in Britain bureau will promote the United Kingdom for mobile international investment to ensure that we are the number one location in Europe for investment from countries such as Japan, the United States and Korea. My right hon. Friend the President of the Board of Trade was able to contribute personally to those efforts when she visited Japan last week.

Mr. Waterson

I warmly welcome the hon. Lady to her new responsibilities at the Dispatch Box. Did she see the report of The Economist intelligence unit a few days ago which concluded that Britain had the second most favourable business environment in the world, second only to Hong Kong? Does she consider that our chances of reaching the No. 1 slot in that league table will be enhanced by having the national minimum wage, the windfall tax and signing the social chapter?

Mrs. Roche

I thank the hon. Gentleman for his kind and courteous words. We want to promote Britain as the investment centre of the world. To do that, we need a highly skilled and highly motivated work force. All the measures that the hon. Gentleman has mentioned will give us just that.

Mr. Fabricant

I, too, welcome the hon. Lady to the Dispatch Box. As she will be aware, about 18 per cent. of manufacturing arises from inward investment in this country. What is her view of the recent Treasury projection—

Mr. Mackinlay

The Tories are bunching up for the camera to try to make it look as though there are more of them.

Madam Speaker

Order.

Mr. Fabricant

Thank you, Madam Speaker.

What is the Minister's view of the recent Treasury projection that a million people will be thrown on the dole if the minimum wage is set around £4? Does she agree with that projection? A simple yes or no will do.

Mrs. Roche

I thank the hon. Gentleman for his kind words.

The Government have always made it clear that the minimum wage would be set at a level the country can afford, that the Low Pay Commission will consult employers as well as employees and that the employers' side of the discussions will be made up of small and large businesses. To be competitive in the modern world, we need a motivated work force. We aim to ensure that we have just that.

Mr. Gunnell

I congratulate my hon. Friend on her place on the Front Bench—indeed, I congratulate the whole team. We have a high-quality team answering trade and industry questions.

Does my hon. Friend agree that having a Government who are united on Europe will help us in terms of inward investment? Have not the divisions in the Tory party over Europe made it much more difficult to attract inward investors to Britain? Is it not good news for inward investment that we now have a Labour Government who are convinced that they will put Britain back at the heart of Europe?

Mrs. Roche

I thank my hon. Friend, and I agree with him. One reason why we attract inward investment to this country is our membership of the European Union and the influence that we can bring to bear. The divisions in the last Administration, who put party before country, were extremely unhelpful to our inward investment. The new Government's first commitment will be to the country, not the party.

Dr. Godman

May I point out to my hon. Friend that there is a long history of inward investment in my constituency? It was the late Hector McNeil, Labour Member for Greenock, who persuaded IBM to come to Spango valley more than 40 years ago. Will my hon. Friend ensure that, whenever possible, those from abroad who are seeking to invest in our constituencies set up research and development centres, which are so important? We do not want just assembly units.

Mrs. Roche

I absolutely agree. Inward investment is important and needs to be taken seriously because of its benefits to local industries and economies. That is why this Government will actively encourage supply chains, working with local authorities and others to get the very best for our home-grown industries from the inward investment that we hope to attract.