HC Deb 27 January 2000 vol 343 cc576-7
16. Mr. Geraint Davies (Croydon, Central)

What recent discussions he has had with other EU member states about improving the competitiveness of business. [105765]

The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell)

My ministerial colleagues and I have held regular discussions with our opposite numbers on a wide range of issues related to competitiveness, in bilateral meetings with member states and European Council meetings. We will intensify those contacts as we approach the Lisbon special European summit in March. That will be a significant summit for the United Kingdom because the issues are close to the heart of this Government as regards promoting a knowledge-driven economy, economic reform and ensuring that the advantages of the single market are enjoyed by all citizens of the European Union.

Mr. Davies

Manufacturing output in Britain is rising at its fastest rate since 1995, with particular success in computers, telephones, pharmaceuticals, chemicals and engineering—despite the level of sterling. In her discussions with our EU partners, will my right hon. Friend make it clear that the reason for our outstanding success is not just efficiency, added value and productivity, but a system of financial stability—as opposed to the boom-bust of the past—that gives certainty to the investment and export growth that is materialising?

Mrs. Liddell

My hon. Friend makes an excellent point. In my discussions with industrialists, they frequently mention the advantages of a sound and stable economy based on a prudent fiscal framework and on engaging with the European Union to secure the advantages of the markets that are so important to British manufacturing industry. Opposition Members who scaremonger about our membership of the European Union do no service to our manufacturing industry—which makes the point that our exports to non-European Union countries are as nothing compared with exports to our fellow member states.

Mr. Crispin Blunt (Reigate)

Does the Minister agree that it is difficult for businesses to be competitive if they have their assets seized by the countries in which they have invested—particularly when those investments are protected by the GATT? Will the right hon. Lady instruct her officials to liaise with those from other European Union countries and EU institutions to ensure that the Department takes the fullest possible action to protect British investments—such as Wena Hotels Ltd, which had its assets seized in Egypt nearly 10 years ago?

Mrs. Liddell

One of the great benefits of membership of the European Union is that where domestic companies encounter significant difficulties, member states can act together. My officials, as part of the step change in relationships with other member states, are able to raise difficult issues and seek a resolution. I will take on board the hon. Gentleman's point. If he wishes to communicate with me further, I will be happy to respond.