Export Services (Hansard, 17 January 1989)

§ Mr. Alan Clark

Following the export services review foreshadowed in the White Paper "DTI—the department for Enterprise" (Cm. 278), DTI export services have been strengthened to meet exporters' needs more effectively, and simplified in their presentation so that businesses, particularly small and medium-sized enterprises new to exporting, will find them easier to use. As the export initiative, the services form part of the DTI enterprise 109W initiative, a comprehensive package designed to help business improve its competitiveness both at home and overseas.

The main improvements to the export services are as follows:

(a) Introduction of new export advisory service to be administered in co-operation with the Association of British Chambers of Commerce (ABCC), leading regional chambers, and in some cases export enterprise centres. The Government will provide up to £2. of funding on a tapering basis over a maximum of three years. The scheme involves the appointment of 31 export development advisors nationwide who have considerable private sector exporting expertise. They will take a positive role in identifying potential exporters and offering practical assistance tailored to the specific requirements of individual firms.
(b) Greater involvement of the private sector in delivering export services and advice to potential exporters. This includes:

(i) contracting out the administration of the export marketing research scheme to the ABCC for three years from 1 December 1988;
(ii) enabling private sector contractors to compete with the Department for the provision of stand design and installation at overseas trade fairs which the Government support; with effect from the 1989–90 financial year;
(iii) faster delivery of export intelligence information by contracting out to a private sector firm the marketing, sale, and delivery in the United Kingdom of overseas market information provided by diplomatic service posts (and other sources);
(iv) setting up a three-year pilot study in conjunction with The Netherlands-British chamber of commerce to provide new export counselling services to British companies which will complement the work of our diplomatic service posts; if successful, similar schemes could follow elsewhere in Europe.

(c) Improvements to the quality of management of the export services and to staff training. We have introduced a system under which an industrial market research company will monitor standards of export service delivery worldwide, enabling us to ensure that export services remain relevant to customers' needs. A major new training programme for DTI export staff has been implemented. This will be augmented with the support of the CBI, ABCC, and Institute of Export by a new programme of short-term attachments for DTI export staff to gain first-hand experience in exporting companies.
(d) Better marketing of the Government's export services. We are issuing in 17 January 1989 a new introductory guide to exporting designed to help firms new to exporting understand the exporting process, and how the Government can help. It is accompanied by a new promotional video. This will be supported by a sustained campaign in newspapers and technical journals advertising our services.
(e) Rationalisation from 1 April 1989 of the charges made for Government export services. We will extend charges to cover advice and information on overseas markets provided by diplomatic service posts abroad in response to specific requests from British companies. This will enable us to offer a more professional and cost-effective service, and to concentrate resources on the services of most value to exporters. We will introduce at the same time a simplified payments system, based on the use of a servicecard specifically for export services. This will be accepted by all diplomatic service posts oversea.: and relevant Government offices in the United Kingdom. It will be operated for us by a private sector company.
(f) The introduction from 1 April 1989 of a scheme in which my Department and companies will jointly provide funding for training people from overseas who have, or may in future hold, important procurement responsibilities. The aim will be to give the individuals concerned the opportunity to acquire experience in British companies and of British business and manufacturing methods. This will strengthen ties between our exporting companies and their overseas customers.

Other improvements to the services include closer integration of the export initiative with other elements of the enterprise initiative, particularly the consultancy in export strategy available under the marketing initiative; the development of an export market information centre in the DTI; and restyled Government export publications and trade literature.

The new and improved services will help to ensure that smaller companies and those new to exporting receive better Government support. The strengthened export initiative should also benefit larger and more experienced companies, who make a major contribution to British exports. They play a vital role in retaining a British presence in overseas markets by winning large export contracts which provide considerable numbers of sub-contracts of benefit to smaller and medium-sized firms. To succeed in these highly competitive areas, and to secure the deals which provide such striking advertisements for British technology, consultancy and management skills, our companies must be able to compete on equal terms with their foreign counterparts. The Government offer a wide range of project services to enable them to do so, and have a continuing commitment to winning major projects overseas. These services include the aid and trade provision, which is Government-to-Government aid, within which is the global soft loan facility introduced in November 1985. The Overseas Projects Board will continue to give its valued guidance to us in these activities.

The British Overseas Trade Board will continue to be closely involved in the planning and operation of the export services, in promoting greater awareness of overseas markets and best practices in exporting, and in promoting British business overseas. In addition, it will in future be responsible for helping to develop a corporate plan, ensuring that our export promotion strategy and priorities reflect market developments and businesses' needs.