HC Deb 28 March 1985 vol 76 cc307-8W
Mr. Hanley

asked the Secretary of State for Trade and Industry whether he is satisfied with the change in the number of small companies as opposed to large companies that have received support under the overseas projects fund and the market entry guarantee scheme since 1979.

Mr. Channon

Information is not readily available to show how many small firms have been supported by the overseas projects fund since 1979. But many small firms have certainly benefitted from the OPF as suppliers to successful larger contractors.

An analysis of the market entry guarantee scheme based on turnover figures and adjusted for inflation, suggests that in 1979 some 36 per cent. of companies receiving support under MEGS could be classified as small companies; in 1984 the figure was some 54 per cent. In February 1984, the Department reduced the minimum funding level under MEGS to improve the scheme's attractiveness for small companies.

Mr. Hanley

asked the Secretary of State for Trade and Industry whether the reallocation of British Overseas Trade Board resources since 1979, reducing support for overseas trade fairs and increasing support for the overseas projects fund and the market entry guarantee scheme, has resulted in an increase in the number of small manufacturing companies exporting their products.

Mr. Channon

I expect the changes to BOTB services since 1979 to have helped many small manufacturing companies to export their products. The market entry guarantee scheme is aimed very specifically at helping smaller firms; the support for trade fairs, gross expenditure on which from 1979 to date has been broadly maintained in real terms, also helps many small firms seeking major contracts, benefits a large number of smaller firms associated with the work as subcontractors and in other ways. This scheme's share of the overall budget this year is less than that in 1979–80.

Mr. Coombs

asked the Secretary of State for Trade and Industry what representations his Department has received from the Building Materials Export Group in response to the British Overseas Trade Board consultation document issued in December 1984 about proposed changes to the British Overseas Trade Board budget.

Mr. Channon

A number of representations have been received from the building materials export group. The British Overseas Trade Board has taken full account of the views expressed by the group in deciding how best to use the funds available. The results will be announced shortly.

Mr. Richard Page

asked the Secretary of State for Trade and Industry what representations his Department has received in response to the British Overseas Trade Board consultation document issued in December 1984 about proposed changes to the British Overseas Trade Board budget.

Mr Channon

There has been a wide ranging response to the British Overseas Trade Board's consultation document both from representative bodies and from individual firms. The BOTB has taken full account of views expressed in deciding how best to use the funds available. The results will be announced shortly.

Mr. Hanley

asked the Secretary of State for Trade and Industry whether he is satisfied that the reallocation of the British Overseas Trade Board resources since 1979, reducing support for overseas trade fairs and increasing support for the overseas project fund and the market entry guarantee scheme, has led to an increase in United Kingdom manufactured exports as a proportion of total United Kingdom exports.

Mr. Channon

[pursuant to the reply,27 March 1985]: I would expect that the changes to BOTB services since 1979 have benefited both manufactured and invisible exports equally, particularly those from smaller firms. But it is not possible to quantify precisely the effects of the changes. All three schemes mentioned are open to all firms, whether manufacturing or services sector.

Mr. Grylls

asked the Secretary of State for Trade and Industry if he is satisfied that the interests of small companies are adequately represented on the British Overseas Trade Board.

Mr Channon

[pursuant to the reply, 27 March 1985]: Yes. Of the 17 businessmen on the British Overseas Trade Board, three are chairmen or managing directors of small firms. A fourth pays special attention to the views of the chamber of commerce movement which represents many small firms. These four members make up the business representation on the finance and general purposes committee which advises the board on the allocation of resources and the export services.