§ Mr. DonaldsonTo ask the Secretary of State for Trade and Industry what steps are being taken to encourage UK based companies not(a) to relocate off-shore and (b) to transfer jobs to other countries. [133521]
§ Mr. Mike O'BrienThis Government believe that, as UK based companies are operating in an increasingly competitive, global marketplace, they have the freedom to choose where to locate in order to maximise their competitive advantage. The Government are continuing to create a competitive environment in the UK where an educated and skilled work force, better infrastructure and access to European and world markets has made 673W this country the leading country for Foreign Direct Investment in Europe and second in the world only to the United States.
The UK is a trading nation. Our economic long-term interest must be based on our ability to innovate to produce high value-added goods and services which need a highly skilled work force, high calibre managers, forward looking unions and knowledgeable consumers. A protectionist approach would damage the interests of the UK. Figures on the potential for outsourcing do not take account of the fact that the UK could gain jobs in some sectors as a result of increased competition for services. We are the world's second largest exporters of service products especially in financial services. Our service exports at £82 billion are larger than our service imports at £69 billion. Growing international competition in services could see us gain more jobs then we lose.