Oral Answers to Questions

Graham Stuart Excerpts

Thursday 5th March 2020 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

2. What the three fastest growing UK goods exports were in 2019.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

UK goods exports were up 6.4% last year to a record £372 billion. Interestingly, the three fastest growing UK goods exports in 2019 were: one, unspecified goods; two, works of art; and three, jewellery.

[Mr Hollobone]

Are UK goods exports growing quicker to EU countries or to non-EU countries?

[Graham Stuart]

In 2019, goods exports to the EU were down by 0.9% to £170.6 billion, while goods exports to the non-EU were up by 13.6% to £201.5 billion.

[Sarah Olney (Richmond Park) (LD)]

3. What assessment she has made of the potential merits of a trade agreement with the EU on similar terms to the EU-Australia trade negotiations.

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[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

Winning further foreign direct investment is crucial to the delivery of rising living standards and the levelling up of left-behind communities up and down the land. Companies such as Ferrero, in the constituency of my hon. Friend the Member for Amber Valley (Nigel Mills), which exports wonderful, quality chocolate all over the world, will potentially benefit, as will other UK chocolate producers, as a result of our UK-US free trade agreement.

[Nigel Mills]

I thank the Minister for that answer, and I join him in valuing the investment that Ferrero has brought to the old Thorntons factory. Most of the large employers in my constituency have had FDI at some point or other in their history, so what more can the Government do to ensure that that investment is spread out evenly across the country, and is not just focused in London and the south-east?

[Graham Stuart]

I thank my hon. Friend for that question, because FDI is so important to the UK. Foreign-owned firms represent only 1% of businesses, yet they contribute 22% of economic output and deliver 15% of employment. My Department uses our regional teams right around the country, and in 110 countries around the world, to make sure that we get that message out. Only yesterday, I hosted a meeting with regional leaders from right across the UK at No. 10 to show the importance we attach, as my hon. Friend does, to sharing these FDI benefits right across the country.

[Elliot Colburn]

Does the Minister agree with me and with residents of Carshalton and Wallington that instead of talking down London, as the current Mayor does, we should be supporting Shaun Bailey’s idea to put in a deputy Mayor for trade to make sure that London remains a destination with one of the highest levels of FDI in the world, to attract businesses and entrepreneurs?

[Graham Stuart]

I am grateful to my hon. Friend for that. I think the people of London want a Mayor who makes things happen, who is a champion of business and who recognises that, for all the wealth in London, there are too many people left behind. We need a Mayor who gets on with the job—one who does not act like a commentator but who actually acts like a leader.

[Jack Lopresti]

Does my hon. Friend agree that free ports will help to attract significant foreign investment, and regenerate and create jobs in some of our communities and deprived areas?

[Graham Stuart]

I thank my hon. Friend for his question, on which he is right. He is constantly championing the interests of his area, not least because of the need for regeneration. Free ports offer that opportunity. We are in constant talks with The Bristol Port Company, and I know that he is working closely with the West of England Mayor to make sure that that regeneration and the benefits of FDI are brought to his part of the country, with all the prosperity and employment benefits that that will bring.

[Judith Cummins (Bradford South) (Lab)]

The Minister will be aware of the concerns of businesses and, in particular, of producers supporting our regional economies about the impact of the proposed most favoured nation tariffs on their capacity to attract investment in new technology that is essential for our transition to net zero. What assessment has he made of the impact of the proposed measures on the UK’s attractiveness as a destination for investment, particularly in new green technology?

[Graham Stuart]

I thank the hon. Lady for her question. The consultation closes tonight and we are determined to get the right balance. We are clear that we are going to have a tariff regime that benefits UK consumers and business, and allows us to align ourselves most effectively to where 90% of global growth is expected by the International Monetary Fund to be in the next five years or so, which is outside Europe.

[Judith Cummins]

I thank the Minister for that answer, but he is not addressing the specific concern that the tariff schedule could hurt domestic producers by stifling FDI in precisely the places in the country that need it most. Are the Government really going to ignore industry concerns, potentially costing jobs?

[Graham Stuart]

I would have hoped that, after sufficient time in the House, the hon. Lady might have understood how a consultation worked. The consultation closes today, and I cannot comment on a consultation that has not yet closed. What I can tell her is that, as she will be delighted to hear, under this Government the UK has attracted more FDI than any other country in Europe. Indeed, we have attracted more FDI in aggregate than Germany and France combined. If she and her colleagues on the Labour Front Bench were to support business and enterprise in the way we do, instead of opposing them, we might see more jobs and prosperity.

[Jim Shannon (Strangford) (DUP)]

With Northern Ireland being recognised as the cyber-security capital of the United Kingdom of Great Britain and Northern Ireland, will the Minister outline what steps are being taken to highlight this massive international market?

[Graham Stuart]

As I said in an earlier answer, I was pleased to meet Northern Ireland representatives in No. 10 Downing Street yesterday. When I visited Belfast last year, I learnt more about the phenomenal tech, and in particular cyber, capability there is in Belfast. The Department is determined to make sure that the message of how investable and how strong Northern Ireland is, and what great capability it has, is understood through all our posts in countries around the world.

[Felicity Buchan (Kensington) (Con)]

There has been a huge amount of foreign direct investment in the financial services sector, not only in London but throughout the regions and in Scotland. Can my hon. Friend assure me that, in all free trade negotiations, the interests of the financial services sector will be protected?

[Graham Stuart]

I thank my hon. Friend, who characteristically puts her finger on an important point. Services have too often not had sufficient focus in trade agreements. We are very much looking to put financial services, data and other elements at the heart of our trade policy, which will be great for the City of London. However, it is important to note that there are more people working in financial services in the northern powerhouse than there are in the whole of Frankfurt.

[Mr Stephen Morgan (Portsmouth South) (Lab)]

5. What steps her Department is taking to support exports by the UK renewable energy sector.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

We are working with the Department for Business, Energy and Industrial Strategy to maximise the overall economic impact of our world-leading renewable energy sector, including that of exports. The Department undertakes a range of promotion activities, including running trade missions and dedicated workshops.

[Mr Morgan]

I thank the Minister for that response. What support has the prosperity fund awarded to fossil fuel projects in developing countries, and how was that funding assessed in terms of the environmental and social impacts of those projects?

[Graham Stuart]

All investments by the prosperity fund are examined against the raft of UK Government policies, objectives and aims, and we do that in all cases in each continent of the world.

[Martin Vickers (Cleethorpes) (Con)]

As the Minister is aware, the Grimsby and Cleethorpes constituencies are major centres for the renewables sector. Many of the smaller businesses are vital parts of the supply chain, and they would like to get more involved in exports. Will the Minister agree to meet me and a delegation from the local industry to explore the possibilities?

[Graham Stuart]

I am grateful to my hon. Friend. He will be aware that the offshore wind sector deal, published in March 2019, sets an ambition of increasing exports fivefold to £2.6 billion by 2030. He and I, in our respective constituencies, have seen the transformation of the economics of offshore wind. We are now seeing UK Export Finance, for instance, financing major investments in Taiwan and other parts of the world, with UK exports and UK expertise, not least from my hon. Friend’s constituency, at the heart of that. I would be delighted to meet him.

[Kerry McCarthy (Bristol East) (Lab)]

17. A recent investigation by “Newsnight” and Greenpeace found that UK Export Finance is financing oil and gas companies that will emit 69 million tonnes of carbon a year—nearly a sixth of the UK’s annual emissions. It is ridiculous to talk about tackling climate change in this country when we are exporting our carbon footprint abroad. Will the Minister commit to phasing out this support by 2021?

[Graham Stuart]

The Government are investing £2.5 billion in clean growth innovation by 2021, as set out in the industrial strategy. The offshore wind sector deal commits the sector to investing up to £250 million, building a stronger UK supply chain. It is a transition—a transition away from fossil fuels to cleaner technologies—and we intend to drive that ever faster.

[Mark Logan (Bolton North East) (Con)]

6. What recent assessment she has made of the ability of the UK to attract foreign direct investment in (a) film and (b) television production.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

Foreign investment in film and TV is booming. Just last month, I met representatives of the US’s Blackhall Studios, and they unveiled plans for a major investment in conjunction with Reading University, which should bring £500 million a year in inward investment to the UK. That studio alone is expected to employ 3,000 people and further strengthen the UK industry as a creative and economic triumph.

[Mark Logan]

As everyone knows, Bolton is the new Hollywood. Having appeared in the Netflix show “The Stranger” and in “Top Gear”, which is filming in town today, Bolton has generated more than £200,000 in the past 12 months from being used as a film location. Will the Minister give an indication as to how a US-UK trade deal will benefit Bolton’s creative industries and cement our place as the newest leading media centre in the UK?

[Graham Stuart]

Smoothing access to the US through an FTA will help Bolton, and having such an excellent and film-ready advocate for Bolton as my hon. Friend, I look forward to him appearing, perhaps even with a speaking role, in future productions. It is notable that, in the past two years alone, we have seen the BBC, Netflix and Sky all using Bolton as locations for major productions, including “Peaky Blinders”, which I can certainly see him in; the “Last Tango in Halifax”, where he may be a younger love interest; “The Stranger”, although I know he never tries to be; and “Cobra”, which perhaps suggests his action credentials.

[Mr Speaker]

The famous film “Spring and Port Wine” was also filmed in Bolton.

[Alison Thewliss (Glasgow Central) (SNP)]

Mr Speaker, you should also know that the filming of the new Batman movie has been happening in my constituency in Glasgow.

Is it still the intention of the UK Government not to implement the EU copyright directive because of Brexit? If so, what analysis have they done on what impact that will have on foreign direct investment in film and the creative industries?

[Graham Stuart]

Now that we have departed the EU, we are determined to ensure that we remain the leading production hub globally, as we increasingly have been in film, not least thanks to the skill, expertise and beauty of the people and the places, including in the hon. Lady’s constituency.

[Tom Randall (Gedling) (Con)]

7. What recent steps she has taken to help improve bilateral trade relations with Japan.

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[Sam Tarry (Ilford South) (Lab)]

15. What recent assessment she has made of the effectiveness of the Government’s trade strategy.

[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

UK exports are at a record high, with the latest figures showing exports of £689 billion—up 5% on 2018. We are committed to doing even more, building on the measures in our export strategy. Just last month, we launched a new business support campaign, helping businesses of all sizes to fulfil their exporting potential.

[Sam Tarry]

Over the last few weeks, the good residents of Ilford South have been writing to me in greater and greater numbers because they are concerned about the sectarian violence we are seeing in some of our Commonwealth partners in certain regions of the world. Can the Minister reassure me and the residents of Ilford South by telling us what steps he will take to ensure that the Government’s trade strategy always promotes human rights abroad and does not embolden or reward regimes or Governments who oppress communities that are a minority in number?

[Graham Stuart]

The hon. Gentleman is quite right to highlight the issue of trade’s role in parts of the world where human rights are being breached. Right across the Department, we seek to ensure that all such considerations are taken into account, while recognising the need to engage with regimes that may have less than perfect Governments, for the benefit of the people there. It is a balance that we take very seriously, and I look forward to further discussion with him to get it right.

[Sir Desmond Swayne (New Forest West) (Con)]

There are lessons for our strategy arising from Japan’s rather unsatisfactory negotiations with the EU, are there not?

[Graham Stuart]

We could look at Japan, or we could look at Mercosur, which took 20 years of negotiation. Some say that the UK shorn of the heft of the EU will be less able to do deals. There are ways in which that would be true, but fundamentally, with agility, as many countries have shown, we can do more deals more quickly and, most importantly, bring greater prosperity, employment and opportunity to my right hon. Friend’s constituents and mine as a result of the UK having its own independent trade policy for the first time in 40-odd years.

[Steve Double (St Austell and Newquay) (Con)]

T1. If she will make a statement on her departmental responsibilities.

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[The Parliamentary Under-Secretary of State for International Trade (Graham Stuart)]

I am grateful to my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), who sets an example—not least to the party over there, the SNP—in championing the interests of Scottish workers and Scottish business, regardless of politics. [Laughter.] The hon. and learned Member for Edinburgh South West (Joanna Cherry) laughs, but all too often she sits there and says—as she did just now, chuntering from a sedentary position—“We don’t want it”: she does not want more resource from the UK Government to support Scottish business. If ever we had an example of how the separatist SNP put that single agenda ahead of the interests of the Scottish people, that was it. Thank the Lord that we have Members like my right hon. Friend to stand up for us.

[Hywel Williams (Arfon) (PC)]

T8.   Is the Secretary of State confident that the Government stance in the EU trade negotiations meets the needs of successful horticultural businesses such as Seiont Nurseries in my constituency, whose time-sensitive exports just will not thrive with delays at the ports, regulatory divergence and punitive tariffs?

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The top source market of foreign direct investment projects coming into the UK continues to be the United States, by a considerable margin. Does that not underline the importance of Heathrow and of the transatlantic aviation route as an enabler of those deals? Will the Minister confirm that the Government are still committed to growth in that important market?

[Graham Stuart]

My right hon. Friend is correct to highlight the importance of Heathrow and transatlantic links with the US and beyond—not only for exports, but for foreign direct investment. I am sure that he and the rest of the House will be kept informed as Government policy develops.

[Mr Clive Betts (Sheffield South East) (Lab)]

T9. In the middle of last year, I visited the port of Rotterdam, a major trading port for us—for goods from not just within the EU but outside it as well. At the time, that port was taking on more than 300 new customs officers and more than 100 new vets for the trade in animals and animal products. Will the Secretary of State confirm whether the UK ports are making similar arrangements? If so, can she give the House an estimate of the cost?