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Retail Sales
14. Mr. Amess: To ask the President of the Board of Trade if he will make a statement on recent trends in retail sales. [10602]
Mr. John M. Taylor: There has generally been good growth in retail sales in recent months compared with the similar period in 1995. The latest official statistics show sales volumes 3.5 per cent. higher than a year ago.
Mr. Amess: Is my hon. Friend aware that many retailers in Basildon, Leigh-on-Sea and Southend are reporting an upturn in trade, in spite of it having been a very difficult time for them? Does he share their anxiety that the threatened imposition of the social chapter, the minimum wage and new taxation policies advocated by the Opposition might damage the recovery?
Mr. Taylor: I have a message for the voters of Basildon, Leigh-on-Sea and Southend: they are right to be anxious. I am anxious--my hon. Friend is right to be anxious--that nothing so dreadful should happen to these good people that they should be burdened with a Labour Government.
Mr. Sutcliffe: As we are talking about retail trends, is the Minister aware of the problem affecting mail order companies? Has he made representations to the Treasury on the problems that the industry faces and the huge effect that they could have on the jobs and services that it provides? Will he make representations to his colleagues in the Treasury to ensure that the VAT argument is sorted out?
Mr. Taylor: I am aware of the problems--as they are perceived to be--to which the hon. Gentleman refers, but he is right to identify them as matters for the Treasury. I would not be offended if he made his own direct representations.
Mrs. Peacock: How much of the increase in retail sales was funded with cash, and how much was funded on credit?
Mr. Taylor: I do not have the figures with me, but I believe that all the evidence suggests that increasing use is being made of credit facilities--not least, of course, of credit cards.
Trade (Thames Valley)
15. Mr. Rendel: To ask the President of the Board of Trade what plans he has to improve trade between Thames Valley businesses and the rest of Europe. [10603]
Mr. Nelson: A dedicated export team has been set up at business link Thames Valley. An export development
counsellor has been appointed and will take up his position in February, and there will be a Thames Valley export forum later this year.
Mr. Rendel: Is the Minister aware of research carried out recently by Bath university--not least on behalf of the Thames Valley economic partnership--which suggests that 60 per cent. of Thames Valley businesses are now trading with Europe, and that half those businesses find that their greatest problem is exchange rate fluctuation? What measures is the Minister taking to ensure that the number and extent of such fluctuations that his Government's economic incompetence has caused will be reduced in the future?
Mr. Nelson: I am aware of the report. The hon. Gentleman is right to say that there are numerous exporting companies--some 3,000, in fact--in the Thames Valley area. Half those companies are exporting to Europe, and are doing extremely well. Their success is reflected in the fact that a considerable number of American technology companies have set up in Newbury and Bracknell in particular, all as a result of Government policies. The hon. Gentleman laughs, but that is a fact. It is happening in his own constituency.
As for the future, the macro-economic stability of our economy is the surest guarantee that our export performance will continue, that the competitiveness of British goods and services abroad will continue to increase and that the substantial confidence in this country's capabilities--not least in the Thames Valley--that is demonstrated by investment from abroad will be maintained. All that is a good-news story.
Mr. Lidington:
Does my hon. Friend agree that the trading competitiveness of small and medium enterprises throughout the Thames Valley would be gravely damaged if the minimum wage and social chapter were introduced, as advocated by the hon. Member for Newbury (Mr. Rendel) and his party? Is it not true that Liberal Democrat policies would mean longer dole queues in Newbury and throughout the Thames Valley region?
Mr. Nelson:
My hon. Friend is right: the Liberal Democrats never knowingly undertax either. Whether through tax or through regulation, they would certainly propound policies that would damage the export prospects of numerous businesses, particularly small businesses. Many small businesses cannot afford to export at long distance, and tend to go to our doorstep markets in Europe. They would be the most severely affected by such policies. The hon. Member for Newbury nods in support; I hope that his constituents will understand the employment and investment implications that would be involved if those policies were ever pursued.
16. Mr. Tipping:
To ask the President of the Board of Trade what assessment he has made of the risk of interruptions to electricity and gas supplies in winter 1997. [10605]
Mr. Nelson:
There is sufficient electricity generating capacity and gas supply to meet foreseeable demand,
Mr. Tipping:
Will the Minister agree to look again at the issue of interruptible gas contracts? Can it be right that combined cycle gas turbine stations depend on such contracts, and will receive extra payments when they use alternative fuel?
Will the Minister also comment on the fact that hospitals have left themselves in an exposed position by depending on such contracts? That clearly gives cause for concern. What steps will the Minister take to try to resolve the difficulties?
Mr. Nelson:
Although it is principally a matter for the parties, the Government properly take an interest in it. We were particularly interested in the report produced by Ofgas in December, which concluded that supply interruptions were most unlikely for customers on firm contracts. As the hon. Gentleman will know, the network code ensures continuity of supply in extreme weather. Every indication has shown that the code is working well,
Mr. Nigel Griffiths:
Does the Minister think that contracts for 250 hospitals should be interruptible? Hospital staff--such as those in Melrose this morning, at the Borders General hospital--have told me that they have only a 10-day supply of oil left to power their back-up generators, whereas British Gas has advised them that interruptible contracts allow hospitals to be cut off for 45 days. There are 250 other hospitals in the same position.
Mr. Nelson:
The hon. Gentleman is most irresponsible if he is an alarmist on such matters.
Mr. Griffiths:
How dare the Minister.
Mr. Nelson:
I dare because the hon. Gentleman is irresponsible. He does not mention the fact that there have not been such interruptions, or that there are perfectly satisfactory and substantial back-up fuel supplies. He also does not state that such contracts offer distinct cost advantages to those who must be careful with how much they spend from the public purse. He peddles fears--which are not founded on reality--on matters of real concern to patients of the health care services.
3.30 pm
The Secretary of State for Defence (Mr. Michael Portillo): With permission, Madam Speaker, I should like to make a statement on the royal yacht.
Britannia has just left Portsmouth for her last voyage around the globe. Since the royal yacht was commissioned 43 years ago, she has travelled more than 1 million miles and undertaken almost 700 royal visits overseas--serving both as a royal residence and as a setting for official entertainment by Her Majesty. The royal yacht has also played an important part in national events, such as the silver jubilee and the anniversary of D-day and of VJ-day. She will be at the ceremonies marking the end of British sovereignty over Hong Kong.
Britannia has also lent her prestige to the promotion of British exports worldwide and the attraction of inward investment to Britain, and she has hosted numerous commercial events. The benefits that Britannia has brought to the British economy are invaluable.
It was therefore with great sadness that we announced, in 1994, that Britannia would be decommissioned this year. Although a beautifully maintained ship, she is old. She is increasingly difficult to maintain, and a major refit would be required to convert her to modern sea-going standards.
The decision stands to decommission Britannia. However, the Government have decided to commission a new purpose-built royal yacht, and have so informed Her Majesty the Queen. We have taken the decision because we believe that a royal yacht is an important national asset, which projects a prestigious image of Britain, adding powerfully to official occasions and assisting greatly in promoting British economic interests. Her Majesty the Queen has made it clear that she expects such a role to be the primary purpose of the new yacht. Moreover, the new yacht will at times provide Her Majesty with a suitable residence overseas, thus contributing to the impact of her visits and enabling her to represent our nation in an appropriate setting.
The vessel will be a symbol of the Crown, of the kingdom and of its maritime traditions. It will be designed to exhibit an enduring level of style, elegance and dignity appropriate to that role, and should act as a showcase for Britain's design and engineering skills. Her Majesty the Queen and the Duke of Edinburgh will be consulted on the design.
The Ministry of Defence will procure the new royal yacht. After a study to enable us to draw up a formal specification and a competition, a contract will be placed with a British shipyard. She will be crewed by the Royal Navy and fly the white ensign. The Queen will contribute to the furnishings and fittings of the state rooms and the royal apartments, drawing some items from Britannia.
We have considered carefully what would be appropriate for Britannia after decommissioning. The Government do not believe that it is appropriate to sell her to a new owner for private use. She will not put to sea again, but we are interested in proposals for a suitably prestigious use for Britannia in the public interest in the United Kingdom. Such a scheme would need to take account of the plan to transfer royal fittings to the new yacht. Any proposals for Britannia would need to
guarantee that the yacht would be kept in excellent condition. If that cannot be assured, it would be better to see her scrapped than to see her deteriorate.
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