Andrew Turner
Main Page: Andrew Turner (Conservative - Isle of Wight)(12 years, 3 months ago)
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Mr Andrew Turner (in the Chair)
As far as I can see, there will be six speakers in 43 minutes. I call Nick de Bois.
Mr Andrew Turner (in the Chair)
There is six minutes for each speaker if Lorely Burt takes over.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)
I thank hon. Members for their kind good wishes, including the encouraging words from my own constituent—it was a relief to hear them—quoted by the hon. Member for Enfield North (Nick de Bois). I congratulate the hon. Member for Macclesfield (David Rutley) on securing this important debate. He made some incredibly important points and focused in particular on the role of small and medium-sized enterprises. It is critical to address how we can get more SMEs exporting, and I will return to that point in a moment.
We have heard about a large number of success stories and we need to go out and argue the case for what is already happening among many companies in our constituencies. Many Members have also highlighted barriers that need to be challenged and tackled. The hon. Member for Watford (Richard Harrington) focused on cultural barriers. We have to encourage our youngsters to think about becoming entrepreneurs and exporters. That needs to be seen as a good thing to do. The hon. Member for Penrith and The Border (Rory Stewart) is correct that long-term investments need to be made to win new markets. We have strong cultural links with many countries. As the hon. Member for South Thanet (Laura Sandys) has said, 220 languages are spoken in this country and they link people to their countries of origin. We need to exploit those links to our advantage, and I think that they are there to be taken.
This debate is timely—tomorrow is the first anniversary of the trade and investment for growth White Paper. Published early in the Government’s tenure, the White Paper made clear the importance of rebalancing our economy. Growth over the past decade was based too much on debt and consumption, and we need to refocus on export. If we are to rebuild our economy, exports are critical, and I think that there is agreement throughout the House on that. My hon. Friend the Member for Solihull (Lorely Burt) made the essential point that the need to rebalance our economy, build sustainable growth and create jobs through international trade and investment must be a priority for us all.
We are a trading nation with a rich heritage to which many hon. Members have referred. We have looked outwards, but in recent years there has been a sense of complacency about our role in the world—it is almost as though we have had a sense of entitlement. We need to challenge that, be hungry and show the buccaneering spirit that has been mentioned. We need to position ourselves to take advantage of the new opportunities for growth, particularly in respect of the non-traditional trading partners. We need to work with renewed energy to ensure that all parts of our economy are working together to get the message across that Britain is open for business. The global economy is highly dynamic and very competitive. We need to be more energetic to win new business.
In response to the points that have been made, I want to focus on three key issues. First, how can we get more companies, especially SMEs, to export? Secondly, I want to outline some of what the Government are doing to help ease the flow of export credit to exporters. Finally, I want to say something about what the Government are doing to help more British companies into the fast-growing markets of the east and the south.
Many hon. Members have focused on the first priority. A vital part of increasing exports is to get more companies exporting. My colleague the Minister for Trade and Investment, Lord Green of Hurstpierpoint, has set out an ambitious programme for increasing the number of SMEs that export. As I think the hon. Member for Macclesfield has mentioned, only 20% to 23% currently export, compared with the European average of about 25%, and the figure is higher in Germany. We need to get an extra 100,000 SMEs exporting over the next four years to reach the European average. That is a bold, ambitious, but achievable goal, and one on which we must focus.
Achieving that increase in the number of exporters is not something that the Government, through UK Trade & Investment and UK Export Finance, can do alone. Last November, at the IMAX at Waterloo, the Prime Minister launched the national export challenge. This major partnering event brought together all those organisations and trusted advisers that can reach out to companies with messages about trade and exports.
The banks face a big challenge. They have the contacts with businesses, but a recent poll showed that many small manufacturers do not feel that they are getting the support that they need from their banks. Banks and other organisations need to reach into the business community that provides a direct route to the decision makers who really matter—the directors and managers who live day by day with decisions about how to maintain and build their competitiveness.
Lord Green is also overseeing changes to UKTI, about which there have been many comments. The changes are bringing in private sector expertise, which has been mentioned, to strengthen UKTI’s leadership, and outsourcing services to private sector deliverers. That, coupled with an extra £45 million secured by UKTI in the autumn statement, has set it on a course to double the number of companies that it helps from 25,000 to 50,000. Lord Green has also overseen the launch of new packages of export credit finance from UK Export Finance that now meet the specific financing needs of SMEs.
Companies that start to export show increases in productivity. They are exposed to new ideas and better use of resources. Their competitiveness and business sustainability also improve. UKTI and UK Export Finance can help those companies with advice and support, but the Government recognise that other partners and intermediaries have a crucial role to play.
Following on from November’s launch of the national export challenge, UKTI and UK Export Finance have held a series of seminars around the English regions. The most recent was in Yorkshire and Humberside on Monday this week. I encourage all Members—this point has been made; there is an enormous amount of expertise in and experience of business in the House—to get involved in such events and encourage businesses in their communities to think about the export opportunities that are available.
As Lord Green has said on many occasions, to reverse the decline in the UK’s trade balance is a marathon, not a sprint. We now have in place the ground work on which to build, including the active engagement of UKTI and UK Export Finance with support networks, and the targeted support of SMEs at trade fairs and on missions overseas.