HC Deb 15 June 2000 vol 351 cc1100-1
10. Mr. Eric Illsley (Barnsley, Central)

What plans he has to amend the procedures for application for export licences. [124592]

The Minister for Competition and Consumer Affairs (Dr. Kim Howells)

Since March 1999, exporters have been able to apply for standard individual export licences on disc. About 90 per cent. of such applications are now made in this way. The aim is to build on that and to introduce a system that will enable exporters to submit their applications over the internet, subject, of course, to satisfactory assessment of security and other relevant issues. Every effort is made to give applicants a decision as quickly as possible, consistent with careful consideration.

Mr. Illsley

My hon. Friend will be aware of a company in my constituency that, even as we speak, is in danger of losing a $600,000 contract to supply a standard piece of equipment—a mine hoist—to a mine in Iran. It might lose the contract because of delays in obtaining an export licence, which it applied for as long ago as March. Will he consider the procedures involved in applying for such licences, and in particular, the inflexibility caused by the fact that the committee that considers the applications meets only once a month? After the approval of an application, delays are then caused by the requirement for approval by other Government Departments. Does my hon. Friend not agree that it might be better to have a single agency to deal with such licences, so as to speed up the process?

Dr. Howells

I take on board my hon. Friend's suggestion, but he must remember that United Nations sanctions are in place to govern the export of military or dual-use goods to Iran. I understand that the sanctions enforcement team was concerned that the hoist in question might have applications other than those specified in the application. That is why a careful examination of the application by the Ministry of Defence and the Foreign and Commonwealth Office is under way. However, I assure my hon. Friend that as soon as the matter returns to the Department of Trade and Industry, it will receive swift and careful attention.

Miss Anne McIntosh (Vale of York)

Although I welcome the Minister's announcement, will he join me in regretting today's announcement by British Aerospace of the closure of its avionics plant at Sutton-on-the-Forest in the Vale of York? One reason for the closure is the merger with Marconi, but another is that the company is finding it increasingly difficult to compete in a major internationally competitive market. Undoubtedly the strength of the pound has harmed the company, so what do the Government propose to do to aid exports in that market?

Dr. Howells

I, too, regret the announced job losses, but I am absolutely sure that British Aerospace, like many other companies in this country, has made the necessary adjustments to compete worldwide. It is a successful company in world wide competition, and I as a Minister will not stand here and talk it down. I know that we have measures in place to help the workers who are being displaced to retrain and find other work. I hope very much that that will happen quickly, but I have every confidence in British Aerospace as a world competitor.

Ms Julia Drown (South Swindon)

A number of export licence issues were raised in the Scott report, and they cannot be addressed without further legislation. Is my hon. Friend's Department ready to get that legislation on to the statute book, and is it pushing to find parliamentary time to do that as soon as possible?

Dr. Howells

I assure my hon. Friend that we are busy at work on drafting appropriate legislation, and that we shall fight our corner to make sure that it appears on the statute book.