HL Deb 09 March 1988 vol 494 cc696-7

2.43 p.m.

Lord Auckland asked Her Majesty's Government:

What measures they have in mind for encouraging more trade in manufacturing and commercial concerns between the United Kingdom and Finland.

Lord Beaverbrook

My Lords, it is less than a year since the Department of Trade and Industry completed a year's campaign to encourage UK manufacturers and commercial concerns to look more seriously at the Nordic market, including Finland. UK exports to Finland in 1987 were 20 per cent. higher than a year earlier. No further campaign is at present planned, but a full range of help is given by the government export services and Finland is one of only five West European countries that are eligible for financial support for group business visits under the department's outward mission scheme.

Lord Auckland

My Lords, I thank the Minister for that very informative reply. I declare a non-financial interest in that I am a long-standing member of the Anglo-Finnish Parliamentary Group and of the Finnish UK Trade Guild. I have paid three visits to Finland, two of which were in connection with Parliament and one a commercial visit. Is the Minister aware that in the Shotton paper mill in Clwyd there is a marvellous example of Anglo-Finnish co-operation both in employment and in capital? There is a further example in the Osake-Pankki Bank where 25 per cent. of the clients come from the UK. Despite his Answer, can he say when the last occasion was that a British Trade Minister visited Finland and whether he will encourage his right honourable friend to hold a trade fair there to increase exports even further?

Lord Beaverbrook

My Lords, I am aware of my noble friend's keen interest in Anglo-Finnish trade. There are plans for Ministerial visits involving Finland. For example, the Finnish Minister for Foreign Trade will be visiting this country on 3rd to 4th May this year, and my right honourable friend the Secretary of State for Scotland will be visiting Finland on 28th May to 1st June. I cannot tell my noble friend when the most recent visit by a British Minister to Finland took place, but I would further point out to him the success of the Nordic campaign which was conducted in 1986–87.

Lord Williams of Elvel

My Lords, does the Minister agree with the noble Lord, Lord Auckland, that the Finnish banks have made a substantial contribution to the financial market here in London? Would he further give us some figures, if he has them in his brief, on the balance of manufacturing trade between Finland and the United Kingdom?

Lord Beaverbrook

My Lords, I can tell your Lordships that in 1987 there was a balance favourable to Finland in trade between this country and Finland of £742 million. But I should say that approximately 40 per cent. of Finnish exports to this country consist of paper and pulp products. If one excludes paper and pulp products the trade between the two countries is almost even.

The Earl of Bessborough

My Lords, does the Minister agree that our trade with Finland also favourably affects our trade with the Soviet Union?

Lord Beaverbrook

My Lords, I am not sure that I would necessarily make that connection. In fact Finland's trade with the Soviet Union has fallen very considerably in the past few years, which of course has made it much more important for Finland to develop other markets.

Lord Taylor of Gryfe

My Lords, on the occasion of the proposed Ministerial visits, the Finnish visit to this country and that of the Secretary of State for Scotland to Finland, will Ministers take the opportunity to thank Finnish industry for its £250 million investment in urban new towns which is generating jobs and is providing an outlet for the timber industry, particularly in Scotland?

Lord Beaverbrook

My Lords, I shall certainly pass on the noble Lord's comment to my right honourable friend the Secretary of State for Scotland. I should point out to your Lordships that the project that the noble Lord has in mind—the Caledonian paper mill—will indeed create 400 new jobs and another 480 indirect jobs in the construction and forestry industries.