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Mr. Skinner: We have not caught up with France.
Mr. Bell: I shall come to the figures in a moment, and I will refer to the intervention of the Chief Secretary in the debate on Monday and to his own statements.
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We welcome the work being done by the agencies and want to build on it. It is important to mention local authorities, whose role we often denigrate. In attracting inward investment, they have played a significant part.
Two weeks ago I had the opportunity of visiting Nissan, where I saw the vast strides that have been made in technology and in the ethic of the work force. In the 1960s I visited Longbridge as a young lawyer, hopefully coming up. When I asked to walk round the assembly plant, management suggested that I should walk quickly and purposefully. When I asked why, I was told that the work force might think that I was a time and motion man and the company might have a strike on its hands. I should point out that under a Labour Government--under Michael Edwards--we came to terms with the problems at Longbridge. Today it is one of the finest companies in the land and turns out a fine product.
At Nissan I saw skills, co-ordination--men and machines coming together, and robots too. The robots play a significant part and, I am happy to say, all have their union card. A new car is being produced. The plant employs 5,500 people and creates more jobs through dealerships and plant suppliers. It designs, manufactures, markets and sells its cars in the United Kingdom. It is a worldwide company with a strong European base.
Nissan Sunderland works closely with other Nissan installations in Europe--a test track and a plant in Barcelona, a new Nissan Design Europe styling centre in Munich and testing facilities in Belgium. Those are all within the European Union and the single market, showing that a global company operating within a global economy can use Europe as a home-from-home base.
Mr. MacShane:
Does my hon. Friend agree that one of the great worries for inward investors is the growing tide of voices in the Conservative party calling for a withdrawal from Europe or a semi-detached status? It is deeply alarming that the Cabinet is giving no lead in making it clear that Britain's future lies in playing a full part in Europe.
Mr. Bell:
I am grateful for my hon. Friend's intervention. One of the worrying aspects of the debate on a single currency is the way in which it is being converted into a debate about whether we should be in the European Union. In the White Paper the Government make it clear that being part of a single market is entirely different from being part of a free trade area. The single market, with its powers of enforcement, is a much more significant concept for our trade than being part of a free market. I fear that the question whether we stay in Europe will become a major issue as the debate progresses.
Mr. Butterfill:
I remind the hon. Gentleman that a Conservative Government initiative created the single market. We recognise absolutely the vital role that it plays in our national interest.
Mr. Bell:
On television this morning I saw at least one Conservative Member recommending our departure from the European Union. As she is not in the Chamber, I shall not mention her name--but perhaps I have assisted the House by referring to her gender. A Conservative Government signed the Single European Act 1986, but we are now witnessing a change in attitude.
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There were some interesting omissions from the speech by the President of the Board of Trade. He did not refer once to the social chapter--that was quite remarkable--and the White Paper mentioned it only fleetingly.
Mr. Gill:
Before the hon. Gentleman turns to the social chapter, does he recognise that the most important consideration for industry in this country is whether we can continue to import the necessary raw materials and convert them into products that we can sell at home or in export markets at a profit? So long as we continue to do that--we have managed it in the past few years with floating exchange rates, as my right hon. Friend the Secretary of State pointed out--why on earth should we adopt fixed exchange rates? It might not be possible to import the necessary raw materials at competitive rates and convert them into products within the straitjacket of fixed exchange rates.
Mr. Bell:
The hon. Gentleman raises two issues. First, he mentions a pertinent fact in relation to trade: most trade is in component parts--they are flying all around the world--which are converted into finished products. Secondly, he points out correctly that we do not require a single currency in order to be part of a trading area, as the north American free trade agreement proves. A single currency is not a prerequisite of a free market, but great benefits may be derived from price stability and currency credibility. It is an advantage for businesses to be able to plan ahead in an essentially inflation-free economy. Those issues are connected with the single currency. I shall examine that subject more carefully in a moment--Friday morning provides a good opportunity to debate such matters, as we can take our time.
The President of the Board of Trade did not mention the social chapter in his speech. Why? Nobody mentioned the social chapter when I visited Nissan. No one said, "We are very worried about a future Labour Government implementing the social chapter". They were glad to hear that our macro-economic policy would be strong, that we planned to meet our target for low inflation rather than relying on forecasts as the Government do, that we would have sustainable growth and that we are committed to the so-called "golden rule" of public finance--that the level of borrowing should cover only investment over the economic cycle. They were more concerned about the macro-economic framework and stability so that they could get on with business. No one mentioned the social chapter.
Samsung's operations are based in Teesside in my part of the world. I am reminded of the comments of the former President of the Board of Trade who, speaking in Seoul, tried to give the impression that Samsung had located here because we do not have a social chapter. Samsung did not say anything of the kind: it had been here for 10 years--before the social chapter was dreamed of--and it had a strong record of sales success, it was pleased with labour productivity and infrastructure, familiar with the English language and happy with the success of its operations. Samsung is so looking forward to a Labour Government that it has invited my right hon. Friend the Leader of the Opposition to visit its plant to open a training centre.
Mr. Skinner:
Before the election at Christmas?
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Mr. Bell:
My hon. Friend anticipates a Christmas election, but I do not know whether Santa Claus will come down the Prime Minister's chimney on Christmas day. The fact is that Samsung is happy about the prospect of a Labour Government.
I think that all hon. Members agree--it is in the White Paper--that we must improve our education and training skills.
The President of the Board of Trade asked me about trade. Britain is a trading nation--Aneurin Bevan described Britain as an island surrounded by fish and filled with coal. The coal may remain in its anthracite veins, but there are not many coal mines left. When the Government boast of their proud record, they never talk about how they cut a swathe through not only our mining industry but our mining villages. Although my hon. Friend the Member for Bolsover and I now represent Her Majesty's Opposition, he began his career in the pit and I began mine in the colliery office. We have a long history in that industry and we understand the way in which the Government's policies have ravaged our mining communities. The President of the Board of Trade did not mention that today.
We accept that we are a trading nation and we embrace our role in that regard. During the debate on Monday, the Chief Secretary to the Treasury intervened on my right hon. Friend the Member for Derby, South to say that the 1980s was the first of many decades when the United Kingdom maintained its share of world trade. However, my hon. Friend the Member for Bolsover pointed out earlier by way of intervention that in the 1980s we also had a trade imbalance in manufactured goods--our manufactured imports exceeded our manufactured exports.
If we look beyond the golden horizon and the Hollywood sunsets that the President of the Board of Trade described, we can see that our share of world trade has steadied. However, the United Kingdom's share of world exports fell from 5.2 per cent. in 1979 to 4.9 per cent. in 1995 and it is projected to fall again to 4.8 per cent. in 1996-97. They are not the Opposition's figures: they are the projections of the Organisation for Economic Co-operation and Development.
I wish to be fair to both the President of the Board of Trade and the Chief Secretary: they are visible exports and we have a strong account for invisibles. The right hon. Gentleman said that about £25,000 million returns to this country from abroad. As I said earlier, we are fifth among the world's trading nations--we rank behind the United States, Japan, Germany and France. We often look to the French economy and base our arguments upon the inflexibility of its labour market. However, we must not forget France's trading surplus or the fact that, together with Germany, it has the lowest interest rates in Europe and the third lowest long-term interest rates in the world. In his Budget Statement, the Chancellor of the Exchequer forecast a rise in export values of more than 7 per cent. this year and 6 per cent. next year. That anticipates an increase in world exports of about 7 per cent. As John Fitzgerald Kennedy said:
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The White Paper makes it clear that free trade and foreign policy combine to make a global vision. It was Sir Ronnie Hampel, the chairman of ICI, who said recently that men and women who think global are men and women of vision. A book was written recently by Eniche Oaftiah--I have the right spelling, so Hansard need not worry about that--called "The End of the Nation State", meaning that we live in a global village and a global economy. The concept of global trading within a global economy has meant, for example, that the United States, and we as part of the same business cycle, have enjoyed a prolonged period of sustained growth.
The President of the Board of Trade talked of how we have been catching up on the French since 1981. It is not necessarily the case that that is happening but it is a case of business cycles. We are linked into the American cycle and the French are locked into the European cycle. There are cycles and movements in these areas. We are behind the French in world trade, and the French are pushing hard, as they often do. I agree entirely with the President that we should continue to push as well.
If we link global vision with our foreign policy, it is clear that there has always been a political dimension to our trade with Europe. The European Union is now the largest marketplace in the world. Its share of world trade is greater than that of the United States and even of Japan. The more that we trade with one another--the more that we take in one another's washing--the more successful we are likely to be, and the more we are likely to work together throughout Europe rather than to find ourselves in the conflicts of the past on the so-called vieux continent.
We are saying that trade is a successful instrument of policy, serving the national interest and adding to the well-being of people throughout Europe so that we can reach the end of the century and face the next millennium looking outwards towards Europe and a trading bloc in which we play a major role. The single market consists of 370 million people with 16 million enterprises.
The President of the Board of Trade uses his own soundbite in referring to the enterprise centre of Europe. I think that it was the former President, who is now the Deputy Prime Minister, the right hon. Member for Henley (Mr. Heseltine), who invented that phrase. It did not come from Saatchi and Saatchi. But we must be not merely an enterprise centre, we must be at the heart of Europe. That is something that the Prime Minister says sometimes when he feels in a pro-European mood, but ignores on other occasions.
We are saying that we must be genuinely at the heart of Europe. It is a major trading post for us that should be enhanced to increase economic growth and employment prospects, and higher levels of prosperity for our citizens. It is significant that the United Kingdom will have the presidency of the Union in the first half of 1998. I am glad that the hon. Member for Ludlow is with us, because I shall take up the point that he made on the single currency. The hon. Member for Beaconsfield made the same point.
Britain's presidency of the Union from 1 January 1998 to 30 June will be an historic one. There is no doubt that the EU will decide at that time how it proposes to go forward to its single currency, who has met the convergence criteria and who will be on the first Euro train. The significant fact for us all to remember is that
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It is rather significant that we have not heard a great deal from the President of the Board of Trade about the completion of the single market, which is one of the major issues for us. The single market should be properly completed, and we should make that an aim for us in the presidency from 1 January 1998. We want to say, "Yes, the single market exists, and yes, it should be completed." I welcome the White Paper and the "action single market" and "trade barriers" initiatives, whereby we shall try in our own way to complete the single market by overcoming trade barriers and other difficulties.
There are many areas where the single market is not complete--for example, gas, telecommunications, information technology, biotechnology, public procurement, insurance and financial services. Many directives have been adopted within the single market programme which are not being properly enforced. Some have not been transposed into national law within member states. That is not to say that progress has not been made, if I may use a double negative.
By the end of 1995, 93.2 per cent. of the required national measures had been adopted by member states. We do not underestimate the task of completing the single market and we perceive the identification of problems as one way forward. We have described the problems and we can define them as follows: the persistence of technical barriers to trade; serious gaps in the transposition of directives; over-bureaucratic application within member states of approved directives; failure of the European Council to agree on enabling directives; the need to strengthen competition policy. These are all major matters and no doubt the Government will seek to do something about them through the intergovernmental conference, and I hope will support the Commission's call that the Dublin summit of the heads of state should renew their commitment to the single market and their commitment to complete it as early as possible.
The White Paper is entitled "Free Trade and Foreign Policy: a Global Vision". I read the call for a world of free and open markets by 2002, with international stability based on economic prosperity. I should have said 2020. I accept that 2020 vision is probably a better way of describing the next millennium and the Government's aims, which include international stability based on economic prosperity, improved living standards for all through increased trade and investment and a leading role for the United Kingdom as the champion of free trade.
I was reminded of a Labour party pamphlet that we turned out in the early 1980s in which we called for jobs, peace and freedom. At the time, The Guardian commented that that was a great deal better than unemployment, war and slavery. There is something in that. The Government's list of objectives sounds very good and reads well, but there is not much substance behind it. When we read 2020 together, one Tory cynic said, "That may be the first year of a future Conservative
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The President has referred to the closer co-ordination of the Foreign and Commonwealth Office and the Department of Trade and Industry, which is to be welcomed. I have mentioned our support for the Invest in Britain bureau. An entire programme of work is required, however, and the President touched upon it slightly today, but kept returning to his 2020 vision.
We must ensure that there is a free flow of trade and investment through the World Trade Organisation, the single market and the enlargement of the single market, about which we have not heard much this morning, to the east of Europe, with all the problems that that will bring in terms of agriculture policy, for example. It will also bring problems for our pharmaceutical industry--I mentioned Merck Sharpe and Dohme earlier, which will face serious problems with parallel imports from countries that do not have patent protection.
There is also the impact of the single currency. The Government have not set out in the White Paper--nor has the President today--what studies have been made on the impact of the single currency on inward investment. What is its impact likely to be on our trade? The White Paper tells us that 58 per cent. of our manufactured goods trade is within the single market and that 37 per cent. of our financial services are traded with that market. What will be the impact on that trade as a consequence of the single market turning to a single currency? What will be the impact if we do not join the single currency? That point was made by the hon. Member for Ludlow.
Those studies have not been made. If they have, we have not heard about them. It would be nice to know that the Department of Trade and Industry was examining these issues, forming a view and assessing where our trade would be whether we were in the European single currency or out of it. I look forward in the months ahead to debating and clarifying how it would or would not impact on our trade, and the course that we should take in relation to the economy. No doubt the political decisions will be based on other criteria.
"All boats lift on a rising tide."
We may be holding our own but we are not doing anything more than that.
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