HL Deb 03 May 1971 vol 318 cc7-9
LORD BROWN

My Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government how many country export groups have now been formed by the Group Export Representative Unit of the Department of Trade and Industry.

LORD DRUMALBYN

Since the formation of the Group Export Representation service it has negotiated some 60 groups. There have been carried out 29 market surveys (12 by firms in one group) and 4 groups have now established overseas offices and warehouses.

LORD BROWN

My Lords, I am grateful for that information—and encouraged. In view of the known difficulty that British firms in pursuit of their export markets have in finding suitable agents and distributors overseas, will the noble Lord discuss with the Minister of Trade and Industry the idea of increasing the number of people who are available to negotiate these group export agreements; for this would add a considerable boost to the number of groups being formed.

LORD DRUMALBYN

My Lords, I think that I should pay tribute to the noble Lord for the intiative that he has shown in having this group set up; and valuable experience has been gained from it. But I think that he will recognise from the figures that this is not something that works in every case. We have to look at the cost effectiveness of this kind of expenditure, and my right honourable friend has come to the conclusion that it is a proper function of industry itself to establish warehouses abroad and that it is proper for Her Majesty's Government to help with the financing of market research.

LORD HOY

My Lords, will the noble Lord pay attention to the remarkable record of the British Agriculture Exports Council in this connection, and will he do all he can to ensure that the work of this Council is strengthened and not weakened?

LORD DRUMALBYN

Yes, my Lords, so far as getting the group concerned together—and I am aware, too, of the part the noble Lord played in this—and also assisting with the market research in the countries concerned.

LORD BROWN

My Lords, would the noble Lord state the number of senior personnel engaged in the Ministry of Trade and Industry on helping form these groups?

LORD DRUMALBYN

My Lords, I think I am right in saying there is a section doing this in particular, with one senior officer assisted by the usual staff in his section.

LORD BROWN

Does the noble Lord really believe that a scheme as valuable as this does not warrant, say, three or four additional personnel to speed up the formation of these highly valuable groups?

LORD DRUMALBYN

Yes, I think the noble Lord will realise when he studies the answer I have already given that this is not universally acceptable. Perhaps I could just tell him that out of the 60 groups formed, 17 groups have carried out a total of 29 market surveys, and four groups in addition are offering financial assistance with overseas offices and warehouses, while four are in negotiation for the provision of overseas offices arid warehouses. This is a comparatively small proportion of a very small proportion of total industry.

LORD HANKEY

My Lords, in welcoming the Government's reply, may I ask whether they will consider the extreme value of encouraging British businessmen to go out and actually work the market? Will they also consider that while the British balance of payments is extremely favourable at the moment a good deal of it is due to capital inflow, and capital has a way of going away if exports are not maintained in a healthy state? It would therefore seem very important for the Government to encourage British businessmen to go and work the market, using the machinery that has been referred to.

LORD DRUMALBYN

In general terms, I would agree with the noble Lord, but we are on the fairly narrow issue here of persuading groups of manufacturers with what might be regarded as complementary products to work together with a view to stimulating sales in particular markets.