Memorandum submitted by British Jewellery,
Giftware & Finishing Federation
Brief Comments on Current Government Export
Promotion Strategy:
— Current government strategy for UK export
promotion is based on dictating policy and markets from the top
downwards, ie; companies are directed by UKTI to focus their export
efforts on emerging markets including India & China. Individual
industries know which are the most suitable export markets for
their products, and sectors should have the freedom and the support
to develop a strategy which is right for their own sector.
— UK Trade & Investment provides many
useful services to support UK companies, including Passport to
Export, Export Marketing Research Scheme, Tradeshow Access Programme
and others, however policy is focused predominantly on correcting
a perceived "market failure" by educating exporters.
In the current economic climate, UK companies should be strongly
encouraged and supported to go out and enter overseas markets,
and UKTI's efforts and budgets should be refocused onto those
front line services which directly help UK SME companies to visit
and enter markets, ie; by attending overseas trade missions and
exhibitions.
— UKTI spends around £19 million
per year in marketing activities, promoting the strengths of UK
PIc around the world, however its budget to support UK SME companies
at overseas trade exhibitions is less than half of this sum.[15]
Consequently the marketing message is often undermined "on
the ground" because fewer UK companies are participating
at international trade shows. Many UK exporters complain that
the UK presence at international shows suffers in comparison to
those of our competitor nations. UK government needs to provide
its companies with a level playing field in accessing international
markets. The German government's budget to support its companies
at overseas trade shows is €38 million (£34 million);
the UK's budget for the comparable scheme is £8.5 million.
— Almost 74% of UKTI's current operating
budget is allocated to staff and administrative costs—£224 million
in 2007-08, out of a total of £295 million.[16]
Staff and overheads levels need to be reduced dramatically, to
free up budget for services which directly benefit exporters.
Regional networks are inefficient and create duplication of administrative
infrastructure, as well as inequalities of opportunity for companies.
Greater efficiency can be realised by more systematic use of existing
industry and trade associations and chambers of commerce in delivering
trade support. Many industry organisations already provide services
which mirror UKTI operations, and typically operate on a not-for
profit basis, in contrast to commercial consultants who are obliged
to generate profit from their activities.
— A greater focus on services which actively
help companies to intervene in overseas markets, and greater use
of existing business intermediaries can create a greater return
on investment for the UK's export promotion budget.
30 April 2009
15 UKTI Report & Accounts 2007-08. £18.8 million
spent on Trade development marketing activities and inward investment
promotional expenditure. TAP budget was £8.5 million. Back
16
UKTI Report & Accounts 2007-08. Back
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