Philippines: Trade Promotion (Hansard, 11 October 1994)

The Minister of State, Department of Trade and Industry (Earl Ferrers)
My Lords, export promotion activity towards the Philippines has increased. There have been ministerial visits this year by the Chancellor of the Exchequer and the Minister responsible for construction, Mr. Baldry. Both were accompanied by United Kingdom companies. The Department of Trade and Industry and the London Chamber of Commerce and Industry held a successful conference this summer to highlight the business opportunities in the Philippines for United Kingdom companies. My right honourable friend the Minister for Trade intends to visit the Philippines later this month, accompanied by a group of businessmen. A programme of future activities is planned to ensure that this momentum is continued.

§ Lord Dormand of Easington
My Lords, that is a very pleasing reply. Is the Minister aware that the Inter-Parliamentary Union sent a delegation to the Philippines during the Summer Recess and that great goodwill was shown towards this country by everyone we met there, including the president of the country and senior members of his government? Is the Minister further aware that although British goods and services are held in very high esteem there, members of the delegation were told that people in the Philippines are very surprised that even more effort is not made to 812 secure exports from British firms? Notwithstanding that very favourable Answer, can the Government do a little more?

Earl Ferrers
My Lords, I am delighted that I gave the noble Lord a pleasing reply. I always try to do that. I am glad to know that he feels that there is a lot of opportunity in the Philippines. That is our view too. Exports from the United Kingdom have increased over the past two years by 100 per cent. from £146 million to £306 million. There is a great deal of work in the active sectors, such as power, water, Pharmaceuticals and machinery. It is our desire to increase that trade to an even greater extent than in the past. That is why the Minister for Trade is going there.

§ Lord Peston
My Lords, I was not aware that the Philippines is such a fascinating place that it is attracting so many government Ministers who could, I suppose, be doing other things. The Minister tells us that our exports have increased considerably. Is it correct that we have a balance of payments surplus with the Philippines, which marks out that market as remarkable when compared with our trade with almost anywhere else in the world?

Earl Ferrers
My Lords, the noble Lord cannot have it both ways. One moment his noble friend asks why we cannot do more. When I tell him that we are doing a great deal and sending a number of Ministers over there to encourage trade, the noble Lord, Lord Peston, asks why they do not all stay at home. He shakes his head, but that is what he said. He is, oddly enough, correct in one respect; that is, that the past two years have seen the position change from a negative to a positive trade balance in the United Kingdom's favour. I remind the noble Lord that that is not unique.

§ Lord Peston
My Lords, it is unique in the sense that if the Minister looks at the overall balance of payments he will see that we are still considerably in deficit. Will he accept that I was not seeking to mislead him? I could not be more delighted by the fact that more Ministers are going to the Philippines; perhaps they will even stay there. I hope that he does not misunderstand me at all.

Earl Ferrers
My Lords, the noble Lord is in a spiky mood this afternoon. I should be delighted to go to the Philippines and to come back and tell the noble Lord how good it is. If he bothered to take a delegation over there, I am sure he would do a great deal of business. I am sure he would find that his time was better spent out in the Philippines than it is in your Lordships' House.

§ Lord Geddes
My Lords, is my noble friend aware that one of the Philippines' most fundamental needs, which could lead to even greater exports from this country, is machinery involved with power generation. Is my noble friend aware that the Philippines is extremely short of power generation, which is inhibiting its industry? Perhaps he can draw the attention of the British companies concerned to that point.

Earl Ferrers
My Lords, my noble friend is right. There is a great deal of opportunity for business in the power sector. That is why I said that the power sector, water, pharmaceuticals and machinery are some of the 813 areas that we are particularly targeting. Conditions in the Philippines have changed a great deal over the past two years. That is why we believe that there are many opportunities there.

§ Lord Stoddart of Swindon
My Lords, is the Minister aware that the point just made by his noble friend is an important one? Is he further aware that in Australia during the Recess I visited a power station at Bayswater which had four Toshiba turbo-alternators? That is disgraceful. It is not the Government's fault; I am not suggesting that it is. However, will the Minister do everything that he possibly can to ensure that British machinery manufacturers such as Parsons and GEC are not undercut by unfair competition from Japan and perhaps elsewhere?

Earl Ferrers
My Lords, I was not aware that the noble Lord had visited Australia or a power plant. Nor is it totally surprising that in some power plants the machinery is manufactured by other than United Kingdom manufacturers. Obviously, we want to see United Kingdom manufacturers take precedence wherever they can. If the noble Lord has any evidence to show that we are being undercut by unfair competition and lets me know, then of course I will look into it, but I am not aware that that is the case.

§ Lord Harmar-Nicholls
My Lords, is my noble friend aware that since there is such enthusiasm for Ministers to join trade delegations it is a pity that when they do so and bring about satisfactory results, ulterior motives are attributed to some of the successes they bring us?

Earl Ferrers
My Lords, I am not quite sure to what my noble friend is referring. I have a shrewd suspicion that he is making an observation which is cast towards the Benches opposite, but I do not think that I shall participate in that. It is much better for my noble friend to make criticisms in his own way without government intervention.

§ Lord Dormand of Easington
My Lords, is the Minister aware that one of the important reasons why Ministers should be visiting the Philippines at the moment—I do not suggest that dozens of Ministers should be going there all the time—is that economic development there is at a stage which I believe the economists call "ready for take-off? It is important that British firms get a good foothold at this time.

Earl Ferrers
My Lords, the noble Lord is right. It is ready for take-off. That is one of the reasons why my right honourable friend the Minister for Trade is going out there this month. He will be trying to encourage British participation in the work out there.