HC Deb 12 July 2001 vol 371 cc912-3
3. Mr. David Borrow (South Ribble)

What steps are being taken by her Department to support exporting by small manufacturing businesses. [2033]

The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths)

Among the steps we are taking are £17.5 million of support to more than 9,000 UK businesses attending overseas trade fairs and meetings in 56 countries, £2.2 million on overseas trade missions, and a new £1.9 million pilot programme to support new exporters in each region of the UK. That is part of the Government's £66 million annual trade development and promotion programme.

Mr. Borrow

I thank my hon. Friend for his reply. When I visit small manufacturing companies in my constituency, once we have got past the lengthy discussion about the weakness of the euro we get down to practical talks about what the Government can do to help small manufacturing companies to export. A common theme in most of those discussions is the need for more support for attending trade fairs. In particular, some existing rules restrict the number of times that a company can be supported in attending trade fairs. That should be re-examined. At a time when exporting manufacturing industries are finding things especially difficult, perhaps my hon. Friend's Department could look again at the existing rules to see whether further resources and assistance can be made available.

Nigel Griffiths

I know that my hon. Friend is a doughty champion of manufacturers in his constituency and region. The existing support available is £2,300 for each trip to exhibit abroad. Exporters are entitled to up to three such grants over a set period. Indeed, the result of that spending is trade for UK firms estimated at £500 million. That represents a return of well over 25 to 1, and is money well spent. However, I shall certainly take on board the thoughtful points made by my hon. Friend.

Mr. David Heathcoat-Amory (Wells)

Will the Minister confirm that Britain is now running the biggest deficit in traded goods since 1697, when records began? Small businesses feel completely frustrated by the extra red tape and regulation pumped out by the Government, all of which damage their competitiveness in international markets, thereby adding to that trade deficit. Is the Minister aware that the DTI's own regulation taskforce, headed by the Labour peer Lord Haskins, has now called the system unworkable and has criticised the Department's efforts—or claims—to be simplifying things as ineffective, and in some cases non-existent? What is the Minister going to do about that criticism? Will his Department simply carry on ignoring the criticism from his own side or will it finally do something about it?

Nigel Griffiths

We certainly intend to take Lord Haskins' suggestions seriously. I note that Francis Maude, when he was a Minister—[HON. MEMBERS: "Oh!"] Is he still in the House? [Interruption.] The right hon. Gentleman is still with us—I apologise to him. He will be able to refresh our memory about the fact that in 1995 he used almost the same words as the right hon. Member for Wells (Mr. Heathcoat-Amory). I am sorry that the right hon. Member for Wells does not pay tribute to the 170,000 new businesses of the past four years. I am also sorry that instead of going back two or three centuries, he does not go back to 1989. At present, the deficit is under 2.25 per cent. as a proportion of gross domestic product, which is much lower than the 1989 figure of 4 per cent. How does the right hon. Gentleman explain that?

Mr. Harry Barnes (North-East Derbyshire)

Under 1973 fair trading legislation, if a multinational company makes a bid for a UK manufacturing firm, it can be referred to the Competition Commission on the grounds of loss of exports. Will the Government retain that condition? If so, will they make use of it on occasion?

Nigel Griffiths

We will shortly be consulting on reform of the competition regime. I shall ensure that my hon. Friend's points are noted and considered.