§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry what assessment she has made of the number of jobs which may be lost in the United Kingdom over the next five years as the result of the decisions made by British companies to relocate parts of their businesses to other countries. [146127]
§ Ms HewittWe are currently studying a number of reports containing a variety of estimates, as well as submissions in response to the DTI consultation paper published in December 2003. Offshoring is not, however, a zero sum game and it will be important to consider not just the number of potential jobs that may be lost, but also the number that may be gained.
§ Mr. Stephen O'BrienTo ask the Secretary of State for Trade and Industry what discussions she has had with representatives of FTSE-100 companies about decisions to relocate part of their businesses to other countries; and if she will publish the minutes of such discussions. [146128]
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§ Ms HewittOn Monday 2 February I hosted a round table discussion with around 50 companies, trade unions and other organisations and academics on the issue of offshoring of UK service activity to other countries. The discussions were held under Chatham House rules, so there were no minutes. There was agreement that the UK cannot compete on labour costs, but must focus on value-added elements where the UK can compete, such as quality of service, proximity to customers, local knowledge and higher skilled work. All agreed that protectionism is not the answer, that location decisions are matters for companies, but that full account needs to be taken of all factors before decisions are made. There was also widespread recognition of the need to make the UK as competitive as possible, both for indigenous firms and to continue to attract inward investment.