§ Mr. Patrick ThompsonTo ask the Secretary of State for Trade and Industry if he will make a statement about the support available from his Department to assist United Kingdom companies participating in overseas trade fairs.
§ Mr. SainsburyThe report of a Rayner efficiency scrutiny review of the status of the Department's fairs and promotions branch was presented to me in June 1991. A copy was placed in the Library of the House. I have accepted the key recommendations of the report, which are
the separation of the operations of Fairs and Promotions Branch into two units, one concerned with the administration of grant support and the other with the delivery of exhibition project management services. The services unit will operate on a full economic cost basis from 1 April 1992. The feasibility of its becoming a "Next Steps" agency will he reviewed in the Autumn of 1993;greater freedom of choice for sponsoring organisations, such as trade associations and chambers of commerce, to negotiate directly with exhibition organisers and contractors for space and/or stand construction so as to obtain maximum benefits on behalf of their exhibitors;simplification of the administration of the grant support scheme. This will involve the introduction of fixed grants towards the costs of space and stand construction to replace the present system of assistance of half the estimated direct costs of providing these facilities.We will be introducing administration grants to offset the cost of sponsoring organisations of making their own arrangements for the provision of exhibition services and increasing the level of travel grants available to eligible exhibitors taking part in exhibitions outside western Europe.
Offers of support under these new terms, which are designed to maintain the level of subsidy to eligible exhibitors at broadly 50 per cent. of the costs of space and stand provision, will be introduced after 1 April 1992. There will be no cut in the budget available to the fairs and promotions branch. Rather, the introduction of a streamlined system of fixed grants will enable the branch's budget to support a greater number of British groups attending overseas trade fairs.
These new arrangements will achieve substantial savings in administrative costs, and better value for money for British exporters. They will lead to even more effective United Kingdom representation at overseas trade fairs.