HC Deb 25 March 1999 vol 328 cc516-7
9. Mr. Bob Russell (Colchester)

What plans he has to increase the funds provided by his Department to assist manufacturing industry with its exporting. [77041]

The Minister for Trade (Mr. Brian Wilson)

I hope that all exporters, including manufacturers, will benefit from the creation of British Trade International. This is a unified DTI-Foreign and Commonwealth Office organisation, first announced on 12 March, which will in future have lead responsibility within Government for trade promotion and development. Current expenditure on export promotion is around £230 million.

Mr. Russell

So far, so good. However, I am sure that the Minister is aware of the terrible problems faced by exporters, and particularly manufacturing exporters. There is a need for more investment in overseas exhibitions and marketing for existing and potential manufacturing exporters, both large and small. May I draw his attention to Woods Air Movement in my constituency, which last year was voted UK exporter of the year, but which has had to lay off 60 staff because of the terrible conditions that it and all other exporters are experiencing? We need more help from the Government on exporting our best assets, and one way of doing that is by more exhibitions overseas.

Mr. Wilson

The hon. Gentleman makes several perfectly fair points. We run an enormous number of exhibitions, trade fairs and missions overseas, which are currently at a record level. In my view, the problem is about targeting and focusing the use of resources better, rather than simply adding to the amount of money that is spent—although I have no prejudice against that idea for the future.

We are spending a lot of money on export promotion, but we want to do it better. The export review, set up after the general election, has introduced many changes. We inherited a lot of good work, and we have added to it. The creation of British Trade International—with a sharp focus, and with Sir David Wright as chief executive—will be a major step forward for the work that the hon. Gentleman and I both want to be delivered effectively.

Kali Mountford (Colne Valley)

In focusing on marketing and sales, will my hon. Friend the Minister make particular reference to the textile industry, which declined for 15 years under the previous Government, yet still produces £8 billion a year for Britain and is a useful industry and exporter? Will he ensure that the particular needs of textile marketing are considered?

Mr. Wilson

I agree strongly with my hon. Friend. The textile task force will recommend what we can do to support more effectively an industry that is under enormous pressure. In response to the banana war, we have taken urgent action specifically to support the cashmere knitwear industry which, although it is obviously important in the Scottish borders, is important also in other parts of the UK. By doing so, we have protected the existence of the industry for the future.