House of Commons Hansard Debates for 14 Mar 1990

Stock Exchange

32. Mr. Wilson : To ask the Secretary of State for Trade and Industry when he next plans to meet the chairman of the stock exchange ; and what will be discussed.

52. Mr. Watson : To ask the Secretary of State for Trade and Industry when he next plans to meet the chairman of the stock exchange ; and what will be discussed.

Mr. Redwood : Ministers meet the chairman of the stock exchange whenever appropriate to discuss topics of mutual interest.

Competition Policy

34. Mr. Martyn Jones : To ask the Secretary of State for Trade and Industry if he has any plans to review his policy on competition.

93. Mr. Sean Hughes : To ask the Secretary of State for Trade and Industry if he has any plans to review his policy on competition.

103. Mr. Ingram : To ask the Secretary of State for Trade and Industry if he has any plans to review his policy on competition.

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Mr. Redwood : No.

Product Safety

35. Mr. Morley : To ask the Secretary of State for Trade and Industry what further measures his Department is taking to improve the safety of retail goods.

38. Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry what further measures his Department is taking to improve the safety of retail goods.

74. Mr. Bill Michie : To ask the Secretary of State for Trade and Industry what further measures his Department is taking to improve the safety of retail goods.

Mr. Forth : Safety of retail goods will continue to be a high priority for my Department. Arrangements exist for the collection and analysis of accident statistics and for the promotion of effective safety campaigns. The Consumer Protection Act 1987 makes it a criminal offence to supply any consumer product that is not reasonably safe. This is supported by safety regulations, where necessary, and by the promotion of safety standards. This framework facilitates the promotion of reasonable standards of safety in the marketing of consumer goods.

GATT

36. Mr. Janner : To ask the Secretary of State for Trade and Industry if he will make a statement on current progress in the general agreement on tariffs and trade negotiations concerning clothing imports.

69. Mr. Riddick : To ask the Secretary of State for Trade and Industry if he will make a statement on current negotiations concerning the multi-fibre arrangement.

Mr. Redwood : The GATT negotiating group on textiles and clothing is discussing how best to return trade in textiles and clothing to GATT rules after the MFA expires next year. There is general agreement that a transitional period will be necessary, but its length has not yet been determined nor has the exact nature of the transitional arrangements. The Community continues to argue that integration of the sector into GATT rules must be paralleled by the strengthening of GATT rules and disciplines, particularly in relation to safeguards, intellectual property, unfair trade and access to raw materials coupled with a greater commitment to market opening, especially from the newly industrialised economies. The group is now meeting more frequently with the aim of making more rapid progress.

Investment

37. Mr. Sumberg : To ask the Secretary of State for Trade and Industry what estimate he has as to the amount of inward investment that has taken place in the north-west of England over the past five years ; and what steps he is taking to encourage further such investment.

Mr. Douglas Hogg : According to the latest figures readily available to the Invest in Britain Bureau, in the five years from 1985 to 1989, a total of 150 inward investment decisions were made to locate in the north- west of the United Kingdom. These included the establishment of a new business, expansion or acquisition of an existing business and involvement in joint venture. The projects

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were expected to create about 8,400 new jobs and to have safeguarded a further 11,900. The figures are based on information provided by the companies themselves at the time of the investment and do not take into account subsequent developments.

In addition to the activities of my Department's Invest in Britain bureau, which promotes the attractions of all parts of the United Kingdom, the Department is the major source of funds for Inward (the regional development body for the north-west). To assist Inward in its activities, I announced on 8 March that it would be offered grant of £840,000 in 1990-91. This is a very large uplift on the 1989-90 grant of £541,000 and will allow Inward to devote extra resources towards encouraging inward investment.

Departmental Expenditure

Mr. Forth : The estimated outturn for total Department of Trade and Industry expenditure in 1989-90 (including public corporations) is £1,363 million. Department of Trade and Industry expenditure plans for 1990-91 and 1991-92 total £1,247 million and £1,000 million respectively (the 1991-92 figure is rounded to the nearest £10 million). These planned levels of expenditure are equivalent to £1, 187 million (1990-91) and £920 million (1991-92) at 1989-90 prices, based on the GDP deflator assumed for the public expenditure plans.

Japan

42. Mr. Tony Banks : To ask the Secretary of State for Trade and Industry if he will discuss with his EEC counterparts the possibility of introducing trade sanctions against Japan.

Mr. Redwood : No. Imposing trade sanctions against Japan would contravene the international obligations of both the United Kingdom and our Community partners under the general agreement on tariffs and trade. In 1989, United Kingdom exports to Japan increased by 30.1 per cent. to £2.3 billion compared with 1988, a growth rate over three times faster than Japan's exports to the United Kingdom.

63. Mr. Yeo : To ask the Secretary of State for Trade and Industry what representations he has received regarding access for British exporters to the Japanese market.

Mr. Redwood : The Government attach great importance to Britain's trade with Japan. Representations on

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market access are received from British companies from time to time and, where appropriate, we take them up vigorously with the Japanese authorities, both directly and through the European Commission. In January our exports to Japan increased in value by 27.4 per cent. compared with the same month last year.

Regional Policy

43. Mr. James Lamond : To ask the Secretary of State for Trade and Industry if he will make a statement on his future plans for regional policy.

83. Mr. Lambie : To ask the Secretary of State for Trade and Industry if he will make a statement on his future plans for regional policy.

85. Mr. Leadbitter : To ask the Secretary of State for Trade and Industry if he will make a statement on his future plans for regional policy.

Mr. Douglas Hogg : Regional policy is kept under continuing review.

Insider Dealing

44. Mr. Stott : To ask the Secretary of State for Trade and Industry when he last reviewed the regulations to deal with insider dealing.

Mr. Redwood : As I told the House on 8 December, the Government that day published a consultative document on proposals to change the law on insider dealing. A copy is in the Library. I am grateful to all those who responded ; careful consideration is being given to their comments.

Biotechnology

45. Mr. Snape : To ask the Secretary of State for Trade and Industry what is the current best estimate of the balance of trade in biotechnology products.

98. Ms. Armstrong : To ask the Secretary of State for Trade and Industry what is the current best estimate for the balance of trade in biotechnology products.

Mr. Redwood : Biotechnology is just emerging from the research phase. It will find expression in such sectors as chemicals, pharmaceuticals, diagnostics, food, agriculture and process equipment. Data on trade in biotechnology are not identified separately in statistics for these sectors.

Grants to Industry

46. Mr. Gill : To ask the Secretary of State for Trade and Industry what assessment he has made of the effect of grants in aid to industry on those enterprises which are not eligible.

Mr. Douglas Hogg : The likely effects of grant on non-eligible businesses and also on non-recipients are considered in the appraisal of all applications under schemes where grant amounts might be substantial (for example, regional selective assistance). These effects are also studied as part of the evaluation of all industrial support schemes.

Exports

48. Mr. Jack Thompson : To ask the Secretary of State for Trade and Industry if he will make a statement on his future plans for his Department's export programme.

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Mr. Redwood : The British Overseas Trade Board's forward plan, published on 23 January, sets out the priorities for the use of the resources available for official export promotion--over £120 million a year--in 1990-91 and provides a basis for their use in the next two years. This will ensure that resources are used where they will have the greatest effect on our exports.

Financial Services Act

51. Mr. Wray : To ask the Secretary of State for Trade and Industry what steps have been taken to ensure that the Financial Services Act is being operated to the benefit of the investor.

64. Mr. Alan W. Williams : To ask the Secretary of State for Trade and Industry what steps have been taken to ensure that the Financial Services Act is being operated to the benefit of the investor.

Mr. Redwood : I believe that the Financial Services Act has already brought benefits for investors, not least the SIB compensation scheme. However, investors also benefit financially when regulation of the firms with which they deal is least burdensome, and the amendments introduced in the new Companies Act should make the system of investor protection more flexible and cost-effective.

Mr. Teddy Taylor : To ask the Secretary of State for Trade and Industry how many firms were permitted to trade on the basis of interim authorisation by SIB and FIMBRA 18 months after their applications under the Financial Services Act ; and if he will make a statement.

Mr. Redwood : Only applications received by 27 February 1988 were given interim authorisation. Eighteen months later 120 applications to FIMBRA and seven to SIB were still operating under interim authorisation.

Government Support for Business

Mr. Douglas Hogg : Total DTI expenditure (including expenditure in respect of public corporations) was £2,257 million in 1979-80 and £1, 814 million in 1984-85 : it is now expected to be £1,363 million in 1989-90. The levels of expenditure in 1979-80 and 1984-85 are equivalent to £4,548 million and £2,387 million respectively in 1989-90 prices, based on the GDP deflator.

Advice Centres

54. Mr. Jim Marshall : To ask the Secretary of State for Trade and Industry what funding he proposes to give citizens advice bureaux and consumer advice centres for 1990-91.

Mr. David Marshall : To ask the Secretary of State for Trade and Industry what funding he proposes to give citizens advice bureaux and consumer advice centres for 1990-91.

Mr. Forth : My Department does not provide any funds specifically for consumer advice centres or directly to citizens advice bureaux. Details of the DTI grant in aid for

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the National Association of Citizens Advice Bureaux and Citizens Advice Scotland in 1990-91 will not be available until after the Chancellor's annual statement on 20 March.

Car Manufacturers

55. Dr. Kim Howells : To ask the Secretary of State for Trade and Industry when he last met the major car manufacturers ; and what was discussed.

65. Mr. Hoyle : To ask the Secretary of State for Trade and Industry when he last met the major car manufacturers ; and what was discussed.

105. Mr. Hood : To ask the Secretary of State for Trade and Industry when he last met the major car manufacturers ; and what was discussed.

Mr. Douglas Hogg : My Department has regular contacts with the major car manufacturers on a range of issues of interest to the industry.

Procurement Markets

56. Mr. Ian Taylor : To ask the Secretary of State for Trade and Industry what assessment he has made of the implications for British industry of the opening up of public procurement markets within the European Community.

Mr. Redwood : The opening up of EC public procurement markets will provide important new opportunities for British industry in markets in other member states which are closed at present. The British market, unlike some others, is already more open.

To put this into context, the annual value of EC public procurement is around £430 billion at 1989 prices. About half this amount is under contracts which are, or will soon be, subject to Council directives. Purchasers affected are Government Departments, regional and local authorities and public utilities. Also covered will be private sector firms in the energy, water, telecommunications and energy sectors operating on the basis of special or exclusive rights granted by public authorities. Suppliers harmed by infringements will be able to seek remedies from judicial or administrative review bodies.

Confederation of British Industry

57. Mr. Home Robertson : To ask the Secretary of State for Trade and Industry when he next expects to meet the president of the Confederation of British Industry ; and what matters he intends to discuss.

88. Mr. Norman Hogg : To ask the Secretary of State for Trade and Industry when he next expects to meet the president of the Confederation of British Industry ; and what matters he intends to discuss.

Mr. Douglas Hogg : I look forward to a continuation of constructive dialogue with the president of the CBI on matters relevant to the well- being of British business.

78. Mr. Oppenheim : To ask the Secretary of State for Trade and Industry when he last met the Confederation of British Industry ; and what matters were discussed.

Mr. Douglas Hogg : I met the director general of the CBI on 1 February to discuss industrial representation and services to business.

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Securities and Investments Board

58. Mr. Adams : To ask the Secretary of State for Trade and Industry when he next plans to meet the chairman of the Securities and Investments Board ; and what will be discussed.

Mr. Redwood : My right hon. Friend and I meet the chairman of the Securities and Investments Board to discuss issues of mutual interest as frequently as is necessary. No date has been fixed for the next such meeting.

104. Mr. McCrindle : To ask the Secretary of State for Trade and Industry when he last met the chairman of the Securities and Investments Board ; and what matters were discussed.

Mr. Redwood : My right hon. Friend last met the Chairman of the Securities and Investments Board on 7 November and I saw him on 17 January. On each occasion a range of topics was discussed.

Trading Standards Officers

59. Mr. Meale : To ask the Secretary of State for Trade and Industry when he last met representatives of local authority trading standards officers to discuss consumer matters.

Mr. Forth : I met representatives of local authority trading standards offices on three occasions in 1989 to discuss consumer matters and my officials have frequent meetings with trading standards officers.

Departmental Structure

66. Mr. Tom Clarke : To ask the Secretary of State for Trade and Industry what representations he has received on his plans for the future structure of his Department, pursuant to his answer of 21 February, Official Report , column 783-84 .

87. Mr. Ronnie Campbell : To ask the Secretary of State for Trade and Industry what representations he has received about his plans for the future structure of his Department, pursuant to his answer of 21 February, Official Report , column 783-84 .

99. Mr. Clelland : To ask the Secretary of State for Trade and Industry what representations he has received on his plans for the future structure of his Department, pursuant to his answer of 21 February, Official Report , column 783-84 .

Mr. Douglas Hogg : None, as of 13 March 1990.

Shipbuilding

68. Mr. Patchett : To ask the Secretary of State for Trade and Industry if he will make a further statement on the future of the shipbuilding industry in Britain.

72. Mr. Orme : To ask the Secretary of State for Trade and Industry if he will make a further statement on the future of the shipbuilding industry in Britain.

Mr. Douglas Hogg : The future of the shipbuilding industry in the United Kingdom will depend on the level of demand and on its ability to obtain orders in the face of

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international competition. The Government provide substantial support to the industry to assist its return to normal competitive conditions.

Mr. Clay : To ask the Secretary of State for Trade and Industry, pursuant to the reply by the hon. Member for Grantham (Mr. Hogg) to the hon. Member for Sunderland, North, 28 February, Official Report, column 207, which sentences in the statement by the right hon. Member for Braintree (Mr. Newton), 14 November 1988, Official Report, column 748, state the reasons why his Department rejected the bid by Mr. Nat Puri to acquire North-East Shipbuilders Ltd.

Mr. Douglas Hogg : References to the reasons for the rejection of the original bids received for NESL are contained in the statement made by my right hon. Friend the Member for Braintree (Mr. Newton) on 14 November 1988, Official Report, column 748.

Mr. Clay : To ask the Secretary of State for Trade and Industry what discussions his Department has held with the European Commission as to the implications for the sixth directive on shipbuilding arising from the amalgamation of the West German Shipbuilders Association and the German Democratic Republic Shipbuilders Association.

Mr. Douglas Hogg : None.

Rechar Initiative

70. Mr. Ashton : To ask the Secretary of State for Trade and Industry how much funding he expects the objective 2 areas of the east midlands in Retford, Worksop and Mansfield to receive from the Rechar initiative for coal mining areas from the European Commission.

Mr. Douglas Hogg : It is too early to say. The European Commission has first to determine and publish a list of eligible coal mining areas for the purpose of Rechar and then to consider programmes of measures for such areas. I hope that its decisions on the amounts of Rechar grants will be reached before the end of this year.

Batteries

73. Mr. McAvoy : To ask the Secretary of State for Trade and Industry what representations he has made to manufacturers and retailers about the lead content of batteries.

94. Mr. McCartney : To ask the Secretary of State for Trade and Industry what representations he has made to manufacturers and retailers about the lead content of batteries.

Mr. Forth : Most lead-containing batteries are covered by the scope of a draft EC directive which aims to reduce the amounts of that metal going in spent batteries to landfill or incineration for disposal. Negotiations on the draft directive have recently begun in Brussels. Officials in my Department have been in regular contact with representatives of the lead and battery industries over the past months.

Industry Council

75. Mr. Bernie Grant : To ask the Secretary of State for Trade and Industry what matters he expects to discuss at the next meeting of the EEC Industry Council.

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Mr. Douglas Hogg : I refer the hon. Gentleman to the reply I gave earlier to the hon. Member for Renfrew, West and Inverclyde (Mr. Graham).

FIMBRA

76. Mr. French : To ask the Secretary of State for Trade and Industry what representations he has received about the role of FIMBRA in regulating the investment company C. J. How.

Mr. Redwood : My Department has received a number of such representations.

Liquidation

77. Mr. Ron Brown : To ask the Secretary of State for Trade and Industry how many firms have gone into voluntary liquidation during 1989 ; and if he will make a statement.

Mr. Redwood : A total of 10,840 companies in Great Britain went into voluntary liquidation in 1989. Of these, 6,633 were creditors voluntary liquidations and 4,207 were members voluntary liquidations. Figures of company liquidations in Northern Ireland are not available for the whole of 1989, but in the 10 months up to October, 92 companies went into voluntary liquidation ; of these, 47 were creditors voluntary liquidations and 45 were members voluntary liquidations.

National Economic Development Council

81. Mr. John Hughes : To ask the Secretary of State for Trade and Industry when he last met the director general of the National Economic Development Council ; and what was discussed.

90. Mr. Robert Hughes : To ask the Secretary of State for Trade and Industry when he last met the director general of the National Economic Development Council ; and what was discussed.

Mr. Douglas Hogg : My Department has frequent contacts with the director general of NEDO and his staff on a wide range of business matters and I look forward to continuing these when I chair the council on 4 April.

West Germany

82. Mr. Bradley : To ask the Secretary of State for Trade and Industry when he last met his West German counterpart ; and what was discussed.

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