HC Deb 16 March 1999 vol 327 cc875-6
7. Mr. Michael J. Foster (Worcester)

If he will make a statement on his Department's future role in export promotion. [74913]

The Minister of State, Foreign and Commonwealth Office (Mr. Derek Fatchett)

Following the Cabinet Secretary's review of export promotion, my right hon Friend the Foreign Secretary was delighted to announce on 12 March—also on behalf of the Secretary of State for Trade and Industry—the setting up of a new unified Foreign Office and DTI export promotion operation, British Trade International, under a single chief executive. I refer my hon Friend to that announcement.

Mr. Foster

I welcome the creation of British Trade International, which is a clear demonstration of the Government's commitment to business. What help will it provide to smaller manufacturing companies, such as Excel Automation in my constituency, which is seeking to expand its export market?

Mr. Fatchett

I appreciate my hon. Friend's comments about last week's announcement. One of the objectives of the new structure is to provide a unified system that will enable domestic companies to sell overseas. Assistance will be provided for United Kingdom companies, such as the one in Worcester mentioned by my hon. Friend, to export to any location around the world. We hope that that assistance will be much more efficient and targeted. My right hon. Friend the Secretary of State for Trade and Industry has announced additional measures to help to promote small businesses and assist with their export activities.

Mr. James Gray (North Wiltshire)

Perhaps further evidence of the Government's commitment to exports is the fact that weapons sales to Indonesia have doubled since Labour came to office. Is that what the Government describe as an "ethical foreign policy"?

Mr. Fatchett

I am delighted that the hon. Gentleman has asked that question because it gives me an opportunity to lay to rest some of the myths that are circulating about arms sales under this Government. An annual report will be published shortly that will set out all the details. However, I assure the hon. Gentleman that no Hawks, armoured cars, water cannon, flame throwers or other equipment of that sort have been licensed by the Government for sale to Indonesia.

I have absolute confidence that, when the hon. Gentleman reads the annual report, he will see that each licence granted conforms totally to the criteria that we established in July 1997. The Government have followed those criteria—unlike the previous Conservative Government, who were prepared to arm Iraq without even bothering to tell the House.