Oral Answers to Questions

Michael Fallon Excerpts

Thursday 23rd January 2014 Commons Chamber

[Stuart Andrew (Pudsey) (Con)]

3. What recent assessment he has made of the level of UK exports.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

The latest figures from the Office for National Statistics, released on 9 January, show that UK exports totalled more than £494 billion in 2012, the highest level on record. Exports in the first 11 months of 2013 were in excess of £40 billion a month.

[Stuart Andrew]

I am grateful for that answer. It has been very encouraging to hear a number of businesses in my constituency, including the Hainsworth mill in Stanningley, reporting increased exports in recent months. Will my right hon. Friend update the House on the performance of UK exports in some of the newer growth markets?

[Michael Fallon]

In spite of tough trading conditions, British exports of goods have increased under this Government—to China by 98%, India by 56%, Russia by 110% and Brazil by 45%.

[Mark Tami (Alyn and Deeside) (Lab)]

The Minister will be aware of the importance of Airbus to UK exports. Is he as concerned as I am about the billions of pounds of subsidy to Boeing that has been announced by Washington state and sanctioned by the US Government?

[Michael Fallon]

These are issues I discuss with Airbus from time to time. The hon. Gentleman will be aware of action under the World Trade Organisation on two cases, one involving subsidies to Boeing and the other involving alleged subsidies to Airbus. I hope that some of those issues can be resolved in discussions on the transatlantic trade partnership.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

In Germany, the Mittelstand leads the way in exports. What steps are the Government taking to target our mid-sized businesses, particularly for emerging markets?

[Michael Fallon]

I recognise the enormous amount of work my hon. Friend did when he served in the Department before me. We have a target of assisting some 1,500 mid- size businesses by 2015. My noble Friend Lord Livingston yesterday announced a major enhancement of the programme that will see an expanded regional network of advisers in UK Trade & Investment, with some 28 advisers in place across all nine English regions, specifically targeted to drive up the number of mid-sized businesses that might be deciding to export for the first time or to increase their performance.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Given the recent comments from Nissan and other manufacturers about the importance of Britain’s staying in the EU, does the Minister agree that it is vital that Britain stay in the European Union and that the current uncertainty about Britain’s future membership that we see in some quarters is damaging to the future of British job prospects?

[Michael Fallon]

What is important for car manufacturers from overseas, such as Nissan, and for all foreign investors in Britain is that the single market is strengthened and available to them. One of the purposes of our reform programme in Europe is to ensure that the member states that do not wish to become enmeshed in the eurozone can still enjoy the full protection and opportunities of the single market.

[Mr David Heath (Somerton and Frome) (LD)]

May I warmly congratulate UK Trade & Investment on its work with the Department for Environment, Food and Rural Affairs promoting the food and drink sector and also the GREAT Britain campaign, which is, I think, genuinely great? Will my right hon. Friend set aside a small promotional budget to support our presence at international food fairs? We are outgunned by other countries, and a pavilion that showed off the best of British produce would bring dividends.

[Michael Fallon]

I shall certainly see what more we can do in that regard. I know that food and drink exports will be one of the themes of our commitment to Expo in Milan later this year and I shall be discussing our pavilion in Milan this evening and tomorrow.

[Mr Iain Wright (Hartlepool) (Lab)]

I detect a real note of complacency in the Minister’s remarks. Let us not crack open the imported champagne just yet. The Secretary of State’s trade and investment White Paper of 2011 stated:

“The UK now needs to rebalance its economy…toward increased exports and investment.”

Yet the value of exports fell in the last quarter and net trade acted as a drag on GDP growth for much of 2013. Given that the trade gap remains persistently high and is growing, manufacturing as a share of our economy has fallen under this Government, and investment has continued to flatline, will the Minister now concede that an export-led recovery has not materialised?

[Michael Fallon]

I am disappointed that the hon. Gentleman should talk down British exporting and British manufacturing at precisely the time we see a renaissance not only in our automotive industry but in our aerospace and other industries. Of course trading conditions are tough, not least with problems in the eurozone and elsewhere, but exports are up and we continue to help drive increased export performance through supporting small and medium-sized enterprises and mid-sized businesses.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

4. What assessment he has made of the value for money achieved for the public purse through the recent sale of shares in Royal Mail.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

With permission, Mr Speaker, I will answer this question together with Question 5.

[Mr Speaker]

Unfortunately not. It is perfectly reasonable for the Minister of State to seek to do so, but the attempted grouping falls because I fear that the hon. Member for Derby North (Chris Williamson) is not present in the Chamber.

[Michael Fallon]

I was hoping there would be some interest in this question.

We believe that value for money should be assessed over the long term and should consider not merely the proceeds from the initial sale but the value of the taxpayer’s retained stake in Royal Mail and the reduced risk to the taxpayer and the six-day-a-week universal service of a stable company with access now to private capital.

[Gregg McClymont]

Given the botched and imprudent sale of the first tranche of Royal Mail shares by this Government at the expense of taxpayers, the public will be concerned about the emerging reports that the Government intend to sell off the remaining family silver before the next election. Will the Minister confirm whether those reports are accurate?

[Michael Fallon]

I can confirm, first, that the sale of Royal Mail was a success. Unlike the hon. Gentleman, I am delighted that the shares have risen in value, reflecting Royal Mail’s interim trading results and the long-overdue agreement with the union. Any decision on a sale of the remaining stake is still to be taken.

[Mr Nigel Evans (Ribble Valley) (Ind)]

One of the hidden values for money is the fact that of the 150,000 eligible hard-working postmen and women who could take up their free allocation, only 368 said no. That means that as the company goes from strength to strength, those who directly work for Royal Mail will now financially benefit from that. Is not that a very good thing?

[Michael Fallon]

Yes. I would have thought that Labour Members would welcome this extension of employee share ownership. I am delighted that 99% of Royal Mail’s employees took up the offer and now have a stake in the success of that company as it moves forward.

[Ian Murray (Edinburgh South) (Lab)]

As my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) said, the fire sale of Royal Mail has cost the taxpayer in excess of £750 million, but it has not taken it long to enjoy its new privatised status. Reports in the media suggest that the board of Royal Mail is about to propose a significant pay increase for the chief executive to bring her in line with those in other FTSE 100 companies. The Business Secretary says that he will use the Government’s remaining stake as the largest stakeholder to veto the proposals. Does the Minister agree with the Secretary of State, his boss, or is this just froth?

[Michael Fallon]

If this were a fire sale, it would certainly, as my hon. Friend the Member for Gainsborough (Sir Edward Leigh) has said, be one of the longest fire sales in history, given that Governments have been trying to sell Royal Mail for over 20 years. I think we should salute Moya Greene’s achievement in transforming a loss-making public corporation into one of Britain’s top 100 companies and congratulate her, as one of all too few female chief executives, on her award as business person of the year. We have yet to receive any proposal from the remuneration committee.

[Neil Carmichael (Stroud) (Con)]

When I last visited Stroud sorting office just before Christmas, I noticed that the much-needed modernisation programme was being started. Does the Minister agree that that has been made possible by the sale of shares and that it represents a Government success?

[Michael Fallon]

Yes. The purpose of the sale was to enable Royal Mail to have access to private capital so that it would not be dependent on the taxpayer for ensuring the successful delivery of the six-day-a-week universal service on which we and all our constituents rely.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

6. What steps he is taking to support women in business.

--- Later in debate ---

[Mr Philip Hollobone (Kettering) (Con)]

For the 150,000 posties who are now shareholders in Royal Mail, will the Secretary of State or the Post Office Minister tell us what the average value of their individual shareholdings was at flotation and what their average value is now?

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

It has undoubtedly increased, and we should all welcome that, particularly the commitment of Royal Mail employees to the future success of the company. Perhaps I shall write to my hon. Friend with the exact information he requests.