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Parliamentary Debates (Hansard) Thursday Volume 564 13 June 2013 No. 17 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 13 June 2013 £5·00 © Parliamentary Copyright House of Commons 2013 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 469 13 JUNE 2013 470 in the earlier period of this Government I introduced a House of Commons new range of short-term trade finance products that we had not had before. They are now picking up a substantial Thursday 13 June 2013 amount of interest, and in the Budget the Chancellor announced £1.5 billion for medium-term—three to five- year—export credit guarantees, which are now being The House met at half-past Nine o’clock implemented. PRAYERS Jonathan Edwards (Carmarthen East and Dinefwr) (PC): In the Secretary of State’s assessment, what would be the implications of a Brit EU exit on the export [MR SPEAKER in the Chair] sector? Vince Cable: I am going to Luxembourg tonight. I hope that by the end of tomorrow we will have to Oral Answers to Questions agreed to launch those very important negotiations. This is potentially the biggest trade deal that has been accomplished for many years, and it will have major BUSINESS, INNOVATION AND SKILLS implications—positive implications—for British exporters, particularly in sectors such as cars. The Secretary of State was asked— Mr Iain Wright (Hartlepool) (Lab): The Secretary of Exports State’s answer to the very pertinent question posed by the hon. Member for South West Bedfordshire (Andrew 1. Andrew Selous (South West Bedfordshire) (Con): Selous) smacked of complacency. His response did What steps he is taking to increase exports. [159352] not mention the fact that figures published last week showed that the value of exports has fallen by 1.3%. The Secretary of State for Business, Innovation and Skills The CBI also said last week that the trade figures were (Vince Cable): Our ambition is to double exports to “unsatisfactory”, with £1 trillion by 2020. This ambition was reflected in the “still a long way to go. The Government needs to do more to help 2012 autumn statement, when UK Trade & Investment raise exports to the fast-growing economies.” was allocated an extra £140 million to enable it to Does the Minister agree with the CBI’s assessment? Is double the number of small and medium-sized enterprises he satisfied with the Government’s performance in boosting supported from 25,000 to 50,000 by 2015. trade so far or does he think he needs to raise his game? Andrew Selous: The Government have made an excellent Vince Cable: The game has been raised very considerably start, with exports to Brazil up by half and to India by over the past three years but the hon. Gentleman is more than half and those to China almost doubled, yet right. The figures on exports are not great and the still only one in five SMEs exports. Were we to get that reason is simple: half our exports go the European up to one in four, we could wipe out our trade deficit, so Union, where output is declining. It has a major economic what efforts are the Government making to engage with crisis. Exports are growing rapidly to emerging markets. the four out of five SMEs which currently do not export My hon. Friend the Member for South West Bedfordshire but whose products and services would be attractive to (Andrew Selous) cited the figures and I will repeat overseas markets? them: 28% growth in the past year to Russia, 16% to Vince Cable: My hon. Friend analyses the problem Brazil and 16% to China. That does not suggest that we correctly: we have to make a major effort in big emerging are not trying. markets, which we have neglected in the past. We have identified 20. I have been to the majority of them, Consumer Protection leading trade missions, as have my colleagues. With reference to raising awareness, for example, in May, a 3. Damian Hinds (East Hampshire) (Con): What steps few weeks ago, we had 80 events across the country he is taking to improve consumer protection. [159354] identifying 3,600 businesses with interests in emerging markets, and there is a greatly increased tempo of activity in the field through the establishment of chambers. The Secretary of State for Business, Innovation and Skills (Vince Cable): Yesterday the Government published Bill Esterson (Sefton Central) (Lab): What has the our response to the recent consultations on consumer Secretary of State learnt from the experience in Germany, rights and, alongside that, a draft Consumer Rights where the state-backed investment bank makes export Bill. This will help consumers and their advocates finance one of its priorities and one of its objectives? understand their rights when things go wrong. Does he think there are lessons there for this country that could improve access to export finance to address Damian Hinds: A constituent of mine paid £20 for the problem that he has just set out? the previous day’s congestion charge, rather than £12, having found an authentic-looking site at the top of Vince Cable: The Germans do indeed have a very Google’s listings. The ownership disclosure was out of good system of export support and trade finance. They sight on the landing page, below the fold. What can be do many of these things well. Partly in response to that, done to protect against such intermediary internet rip-offs? 471 Oral Answers13 JUNE 2013 Oral Answers 472 Vince Cable: As many of us know from our constituency The Minister of State, Department for Business, Innovation work, there are a large number of consumer rip-offs. and Skills (Michael Fallon): The UK automotive industry The purpose of this legislation is to provide for much is in great shape: last year UK car production increased stronger redress, particularly in internet trade, which is by 9% and car exports exceeded imports by value for growing rapidly—we have had the most rapid growth of the time since 1976. The new automotive investment any country outside Finland—and we must bring consumer organisation, which we are announcing today, will build legislation up to match it. on that strong performance, which has already attracted more than £6 billion in global investment over the past Ann McKechin (Glasgow North) (Lab): Glasgow’s two years. Evening Times reported this week that one in five Glasgow citizens is currently using payday loans to try to meet Neil Carmichael: I thank the Minister for that impressive everyday costs. What measures do the Government description of the current state of the British car industry. propose taking in their new legislation to protect consumers What measures is he taking to ensure that we have and, in particular, control the rollover of payday loans, sufficient skills, particularly in engineering, to develop which is often the nub causing people to go into serious the components industry in the car sector as well as debt? recognising the need to provide new technologies? Vince Cable: A great deal is happening on the payday Michael Fallon: Addressing the skills challenge and loan front. The Office of Fair Trading is coming to the increasing the supply of engineers is critical for the end of its investigation, which will result in action that automotive industry and others. It needs attention in is appropriate to the competition authority. Responsibility schools, where the Department for Education is investing will shortly pass to the Financial Conduct Authority, £135 million in science and maths education, and from which has more powers and can be more active in that industry itself. I hope that more car companies will field. We are looking, in particular, at how we can deal follow Nissan’s lead in taking up the employee ownership with misleading and dangerous advertising in that area. pilots. Andrew Jones (Harrogate and Knaresborough) (Con): Mr John Spellar (Warley) (Lab): As a west midlands At my surgeries I have met residents who have come to MP, I join the Minister in welcoming the success of the see me because they are anxious about having been British car industry, which is a tribute to the industry, ripped off or having been victims of mis-selling. What its work force and trade unions and his Department will the proposals do to help them get their money under both Administrations. Is it not extraordinary that back? other Government Departments do not back the British car industry, especially the police, who are buying more Vince Cable: They will considerably improve the rights and more foreign vehicles? Will he talk with the Home of redress, and there is a whole series of specific measures Secretary to get her to back British industry? It might in the Bill, which will be debated at length, on how to even help her leadership ambitions. achieve that. When we aggregate all the redress elements, we estimate that it will probably be worth something in Michael Fallon: They may not need that much help. the order of £4 billion over 10 years to consumers. The right hon. Gentleman makes an important point about procurement by public authorities. He has been Graham Jones (Hyndburn) (Lab): In June last year to the Department recently to discuss the matter with the Government announced a crackdown on cowboy me and I have written to him about it. builders. The DCLG website states: “The measures will also ensure that householders have a Gavin Williamson (South Staffordshire) (Con): In financial safety net in place… if… self-check installers fail to South Staffordshire we are seeing the construction of a finish work properly or if they can’t be chased through the £500 million new engine plant for Jaguar Land Rover.
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