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British Trade International
7. Mrs. Helen Brinton (Peterborough): If he will make a statement on the role of British Trade International in securing inward investment into the UK. [120876]
The Minister of State, Foreign and Commonwealth Office (Mr. Keith Vaz): The Invest in Britain Bureau is the Government organisation responsible for the promotion of the whole of the United Kingdom for inward investment. In response to the Wilson review of export promotion, we are examining the relationship between British Trade International and the IBB, but have not reached a decision on whether to change that relationship.
Mrs. Brinton: I am grateful for my hon. Friend's reply. Can he assure me that any new arrangements will promote increased export opportunities for, and increased investment in, the eastern region--including, of course, my constituency of Peterborough? Will his Department closely monitor the success of those arrangements?
Mr. Vaz: I can reassure my hon. Friend that that is what any new arrangements will do. The matter is still under review, but British Trade International and the IBB work extremely hard to ensure that the opportunities for investors in Peterborough are made well known to those who wish to invest in the United Kingdom. I thank my hon. Friend for all the excellent work that she does in supporting local firms in Peterborough in winning new markets throughout the world.
Mr. John Redwood (Wokingham): The bureau has presided over an increase mainly because the previous Government kept our tax rates and regulatory costs well below those on the continent and this Government have not frittered all of it away yet. Will the Minister assure us that he and his colleagues will veto the measures in the draft treaty of Nice that would create a centralised Government in Brussels capable of increasing business taxes and regulatory costs in this country? Or will we see,
when it comes to a centralised Europe, that, as with Sierra Leone, the Foreign Secretary is the living embodiment of mission creep?
Mr. Vaz: Nobody could give us better advice on creeping than the right hon. Gentleman. As he well knows, the United Kingdom is the number one location for inward investment anywhere in Europe because of the policies of this Government. We have low taxes and a stable economy under the leadership of a superb Chancellor of the Exchequer. That is very different from the policies of the previous Government. Inward investment in the UK last year reached £244.1 billion--a record level--because of the policies of this Government which make people want to invest here.
Mr. Bill Rammell (Harlow): Does my hon. Friend agree that one of the key factors in determining inward investment is Britain's position in the European Union? If we were to follow the policies of the Opposition in indefinitely postponing a decision on the single currency and taking the approach of a step-by-step withdrawal from the EU, that inward investment and those British jobs would be lost.
Mr. Vaz: My hon. Friend, who is much more knowledgeable than the right hon. Member for Wokingham (Mr. Redwood) on these matters, is absolutely right. There is no question that the step change initiative by the Prime Minister, adopted when the Government were elected in 1997, has made a tremendous difference to Britain's position in Europe. We are fully engaged in Europe, as was seen at the recent Lisbon summit, which moved the European Union on to the irreversible path to economic reform. Some 40 per cent. of inward investment in Europe from both Japan and the United States of America, and 50 per cent. of inward investment from Korea, comes to the United Kingdom. Those countries choose to come here because of our pivotal role in the European Union.
Mr. Richard Spring (West Suffolk): Is the hon. Gentleman aware that over four years our trade deficit will double to by far the highest level in our history, due to both our manufacturing imbalance and the Government's vast £10 billion increase in red tape and taxation on our businesses? Does he therefore agree that British Trade International needs all the support that it can get because of the Government's truly shameful record on trade and the soaring cost burdens?
Mr. Vaz: I wonder whether the hon. Gentleman had prepared his supplementary question before he heard what I had to say about the statistics. I do not think that £244.1 billion of inward investment last year is shameful. That investment is at a record level, which means that it is an enormously successful outcome. Of course we support British Trade International; Sir David Wright does an excellent job. That is why we are examining the arrangements that will provide a better service for companies that wish to invest in the United Kingdom.
India
8. Mr. Michael Jack (Fylde): What his policy is on arms sales to India. [120877]
The Minister of State, Foreign and Commonwealth Office (Mr. Peter Hain): India is set to be a 21st century super-power, and British-Indian relations, including commercial and defence links, are very strong. All export licence applications to India are considered on a case-by-case basis against the European Union code of conduct and strict United Kingdom national criteria.
Mr. Jack: I thank the Minister for that positive reply. Will he comment on recent, and what appear to be authoritative, press reports that indicate that BAE Systems has at long last secured a contract with the Indian Government for the supply of 60 Hawk aircraft? If such a contract were to be agreed between the company and the Government, would the United Kingdom see such an arrangement as compatible with an ethical foreign policy?
Mr. Hain: Indeed it would be compatible, because those Hawk jets are for training purposes, as the right hon. Gentleman knows. I commend him for his interest and support in this matter; I think that he has British Aerospace workers, interests at heart.
I raised the matter when I visited India in November. The same matter was raised, and the Indian Government were pressed on it, by my right hon. Friends the Deputy Prime Minister and the Secretary of State for Trade and Industry and my hon. Friend the Minister of State, Foreign and Commonwealth Office during his recent visit. We want to ensure that this £1 billion deal is successful. I cannot confirm the reports to which the hon. Gentleman refers, but I hope that the contract will be successful.
Mr. Steve McCabe (Birmingham, Hall Green): I welcome my hon. Friend's statement. Does he agree that it would be entirely inappropriate for any military hardware from the United Kingdom to be used by the Indian authorities in Kashmir? Do the Government still expect the Indian authorities to develop a policy on Kashmir that takes full account of the wishes and needs of the Kashmiri people?
Mr. Hain: Despite our close friendship and partnership with India, we pay particular--and more than usual--attention to export licence applications for arms for India. We want to ensure that any arms that we sell for legitimate purposes are not used for illegitimate purposes in Kashmir. We have constantly pressed both the Indian and Pakistani Governments to resume the Lahore process and the dialogue there to achieve peace in Kashmir and so end a terrible conflict.
Mr. Ian Bruce (South Dorset): I am sure that the House is grateful to the Minister for supporting the arms industry within the United Kingdom. However, will he consider an urgent case in my constituency? Thorn is trying to sell cable to the oceanographic department in India, which will be used to look for oil. It was told originally that it probably did not need an export licence. However, having pressed the Government after months of delay, the project has now been turned down.
The cable can be used for detecting submarines, but that has nothing to do with Kashmir. In fact, it will be used for a peaceful purpose. Will the Minister examine this urgent case and ensure that jobs for peaceful purposes while using defence technology, which surely is what we all want to do, go ahead and are not turned down by the Government?
Mr. Hain: I will certainly look into the case, if I can, and I will respond to the hon. Gentleman as soon as possible. I realise that submarines have nothing to do with Kashmir, even under a Conservative interpretation. However, there is always a problem with technology that has dual uses. Technology that appears to be for legitimate civilian uses, as seems to be the case with the example that the hon. Gentleman quoted, can also be used for illicit military purposes. That is why we examine each case very carefully.
Afghanistan
9. Mr. Mohammad Sarwar (Glasgow, Govan): If he will make a statement on the Government's relations with Afghanistan. [120878]
The Minister of State, Foreign and Commonwealth Office (Mr. Peter Hain): We strongly support the efforts of the United Nations and others to bring peace to Afghanistan and to secure a negotiated settlement that will lead to a broad-based Government committed to stability. That Government should also be committed to putting an end to terrorism, drugs production, drugs trafficking and human rights violations, especially violations against women and girls.
Mr. Sarwar: I thank my hon. Friend for that answer. Afghanistan is in a sensitive area of the world. Does he agree on the importance of encouraging dialogue across the region to bring an end to the suffering of the Afghan people?
Mr. Hain: I agree with my hon. Friend--it is why we energetically support United Nations' efforts to achieve peace and stability. However, the Taleban Government in Afghanistan deserves strong criticism for harbouring terrorists, such as Usama bin Laden, who contribute to instability in the region. They also deserve criticism for continuing with the policy of pulling up crops and planting poppies. That fuels the drugs trade--90 per cent. of the heroin coming into Britain comes from Afghanistan. The Taleban Government should be indicted for those policies, and we will continue to criticise them for that reason.
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