House of Commons
Thursday 20 November 1997
The House met at half-past Two o'clock
PRAYERS
[Madam Speaker in the Chair]
Oral Answers to Questions
DEPARTMENT OF TRADE AND INDUSTRY
The President of the Board of Trade was asked--
Export Promotion
1. Mr. Goggins: What measures her Department is taking to support British companies in respect of export promotion. [15389]
7. Mr. Barry Jones:
What new policies she will initiate to improve the prospects of those industries which export abroad. [15396]
The Minister for Small Firms, Trade and Industry (Mrs. Barbara Roche):
Madam Speaker, I apologise for the absence of my right hon. Friend the President of the Board of Trade, who is currently fulfilling an important engagement in Australia, where she will open the "UK Now" exhibition and promote United Kingdom companies.
My right hon. Friend announced on 4 November the publication of the Export Forum's report, "Towards an Export Initiative". We welcome the thrust of the forum's recommendations, and are looking forward to responding positively in a number of areas identified by the report.
Mr. Goggins:
An increasing number of small local companies are beginning to look abroad for markets for their products and services. LE-AL Furniture in my constituency recently fitted out the parliamentary buildings in Bratislava. What are the Government doing to support and encourage such companies?
Mrs. Roche:
We very much encourage small companies. On behalf of the House, I warmly congratulate the company in my hon. Friend's constituency on its fine efforts. Such companies can truly win for Britain.
My recently launched "Vision for Business Links" should raise the quality of help and advice given to exporters, including first-time exporters. It will encourage all businesses to make contact with their local business link for expert help and advice.
Mr. Jones:
Does my hon. Friend agree that, at £4 billion per annum, British Aerospace is a magnificent exporter? Does she also agree that £120 million launch aid investment in the proposed A340-600 project will add
Mrs. Roche:
I know of the strong interest that my hon. Friend takes in this matter. He led a delegation from the Broughton site to a meeting on 30 October. The Minister for Science, Energy and Industry was impressed by the quality of the presentation given by that delegation. No final decision on the provision of launch aid has been made, and discussions between British Aerospace and the Government continue.
Mrs. May:
Is the Minister happy with the current level of the exchange rate? What representations have she and other Ministers at the Department of Trade and Industry made on this issue to the Chancellor and the Prime Minister on behalf of British industry, especially British exporters? Is she aware that all the appearances under the sun by the Secretary of State for Trade and Industry at export exhibitions will not make up for the severe damage that is being done to United Kingdom exporters by the Government's exchange rate policy, and by the inordinate delay in granting export licences owing to problems in the DTI?
Mrs. Roche:
The hon. Lady has asked me a number of questions. I shall be as courteous to her as I can, because she is that most important of parliamentary institutions, my pair.
We ascribe great value to our exporters, and our most important aim is long-term macro-economic stability. The Government are absolutely committed to helping exporters, as is illustrated by what we did in regard to trade fairs at the beginning of our administration. The best thing that we can do for our exporters is move away from the bust-and-boom policies of the last Government.
Mr. Swayne:
May I point out to the Minister that the pairing system is not particularly valuable, given the shift system that appears to be in operation on the Government Benches and in her Department?
What action does the Department propose to defend British chocolate manufacturers against protectionism in Europe, and the activities of British Labour MEPs?
Mrs. Roche:
This Government and this party are determined to bat for Britain in any way that we can. Let me also tell the hon. Gentleman that the party of which he is a member, and which formed the previous Government, did a great deal of harm to our business interests by taking the attitude that it took on Europe. We are now reversing that, and making sure that we put British interests at the top of our agenda in order to help British business.
Mr. Mackinlay:
Will my hon. Friend raise with the President of the Board of Trade the urgent need for an initiative to attract British investment in Poland, Hungary, the Czech Republic, Slovakia and Slovenia? Compared with its German counterparts, United Kingdom Ltd. is very sluggish and tardy in investing in that market of some 60 million to 70 million people. Some leadership
Mrs. Roche:
I am grateful to my hon. Friend, who has made an important point. He will be pleased to learn that we have had meetings with our opposite numbers in some of those countries. We see great opportunities for British companies of all sizes there.
2. Mr. Wilkinson:
What assessment she has made of the effect of participation by British companies in formula one motor racing on the capabilities of the motor manufacturing industry in the United Kingdom. [15390]
The Minister for Science, Energy and Industry (Mr. John Battle):
Participation in formula one is of fundamental importance to the highly successful motor sport segment of the motor manufacturing industry in Britain. The motor sport segment also makes a valuable contribution to the technical capacity of the wider motor industry.
Mr. Wilkinson:
If British participation in formula one was so important to the British motor manufacturing industry, why did the crucial meetings about the European Union directive that would have banned tobacco promotion at formula one events involve the Prime Minister, the Secretary of State for Health, Chancellor Kohl, the British ambassador in Brussels, representatives of the Cabinet Office and of the Department for Culture, Media and Sport, Mr. Ecclestone and Mr. Mosley--but not to my knowledge, and not according to press reports, any representatives from the Department of Trade and Industry? Could this be just another case of the phantom President in action--or rather, inaction?
Mr. Battle:
This Government are rather more capable of joined-up thinking between Departments than the previous Government. The Department provided factual information about the motor sport industry and its vital contribution to the economy. Let me add that 50,000 people work full time in that sector, supporting some 30,000 who work in engineering.
Mr. Jim Marshall:
Does my hon. Friend agree that the trade unions have also made a great contribution to the success of the British motor industry? Does he also agree that contributions to political parties from trade unions tend, on the whole, to be more benign than those from rich individuals?
Mr. Battle:
Let me say first that formula one, and the whole motor sport industry, make a major contribution to Britain industrially. That involves suppliers in junior formulas, rally, training cars and carting--suppliers right through the supply chain. Their contribution is vital. Many people work in the sector. I would only add, in response to my hon. Friend's question, that I should
Madam Speaker:
Order. That does not relate at all to the question.
Mr. Townend:
Did the Minister have time to read today's press reports, which show that Mr. Mills still has strong links with formula one racing? Should not that rule out any further involvement by the Minister for Public Health in those matters on the ground of conflict of interest?
Mr. Battle:
I understand that the permanent secretary has confirmed that there are absolutely no problems. It is a bit rich for the Conservatives to raise matters in this way when they will not even publish annual accounts although they have been requested to do so by their party members.
3. Mr. Barnes:
What plans she has to strengthen the viability of the post office network; and if she will make a statement. [15391]
The Minister of State, Department of Trade and Industry (Mr. Ian McCartney):
The future of the post office network is an issue which we are considering as part of our review of the Post Office.
Mr. Barnes:
The review, which will extend commercial provisions in post offices, will be welcome, especially in many rural areas of my constituency. Would it not also help if more post offices could be agents for the Driver and Vehicle Licensing Agency? Post offices in my constituency, such as those in Ashover and Danesmoor, would find it valuable to be able to provide such a service instead of having to wait until an agency becomes available, which is how the present system operates.
Mr. McCartney:
I thank my hon. Friend for his comments. I wrote to him on 18 August advising him that Post Office Counters Ltd. is the agent for the DVLA and that, for reasons of cost, that organisation limits the number of post offices providing its service to 4,000 nationally. Consequently, Post Office Counters Ltd. gives the best possible geographical coverage within the limits that are set for it by the DVLA. I can confirm to my hon. Friend that the Government are fully committed to maintaining a nationwide network of post offices. As a consequence of that, and as part of a review, we shall seek to find ways and means to secure additional business in a range of areas for post offices in rural areas in particular. That is unlike the previous Government, who just wanted to privatise the Post Office and close it down.
Mr. David Heath:
Will the Minister look in particular at the interests of the small rural sub-post office? Will he perhaps go a little further than his answer suggested by seeking ways to extend the range of services that sub-post offices can provide? In particular, will he seek an
Mr. McCartney:
Almost 60 per cent. of villages in the United Kingdom have a post office but only 5 per cent. have a bank. This week, a ground-breaking agreement was reached between the Post Office and the Co-operative bank which will give basic banking services to all post offices. I repeat that, as part of the review, we are keen to see the introduction of new services in post offices throughout the United Kingdom. My offer to the hon. Gentleman is that, when the review and the way in which we intend to take it forward are in the public domain, I shall welcome from all hon. Members ideas on how to encourage new businesses in rural areas. Post offices should be seen not simply from the narrow angle of post offices but as small businesses in their own right. We are committed to promoting that.
Mr. Prior:
Given the Government's commitment to giving the Post Office greater commercial freedom and growing liberalisation in Europe, is the Minister considering the introduction of private capital to the Post Office?
Mr. McCartney:
We have already introduced private capital. A few weeks ago, we gave permission for a joint venture involving the catering services company Quadrant. That will ensure the introduction of private capital into what will become one of the largest and, we hope, the most successful contract catering organisations in Europe, providing services not just to the Post Office but to a range of public and private sector companies which can take advantage of the change.
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