13/01/2016

:00:00. > :00:00.I trust members leaving the chamber will do so quickly and quietly,

:00:00. > :00:09.preserving their private conversations for somewhere other

:00:10. > :00:14.than the chamber. Mr Speaker, I wondered if overnight

:00:15. > :00:18.you have had an opportunity to reflect upon the points of order I

:00:19. > :00:25.raised at the end of the debate last night. The certification process is

:00:26. > :00:31.a new procedure. It is very, very important that we get it right.

:00:32. > :00:33.Particularly since it has stch negative and adverse affects for MPs

:00:34. > :00:40.for Northern Ireland and from Scotland. I intended no criticism of

:00:41. > :00:44.you, Mr Speaker, however I would hope, Mr Speaker, that you would

:00:45. > :00:50.accept that when the governlent tables a new clause that mentions

:00:51. > :00:54.both England and Wales, but then a designation is made in the

:00:55. > :00:57.certificate that it applies exclusively to England, it hs

:00:58. > :01:00.inherently ambiguous and contradictory. That is the point I

:01:01. > :01:05.was making and I would like clarification of how we correct a

:01:06. > :01:12.certificate which is design`ted apparently incorrectly.

:01:13. > :01:17.I thank the honourable lady for her point of order. More over, H can

:01:18. > :01:21.confirm to her and to the house that I am aware of the point of order

:01:22. > :01:27.that she raised with the ch`ir yesterday evening, specific`lly the

:01:28. > :01:35.first deputy Chairman of Waxs and Means was present at the tile. Let

:01:36. > :01:40.me say this to the honourable lady, who I know would never be gtilty of

:01:41. > :01:46.any insults to or display of discourtesy towards the chahr, that

:01:47. > :01:57.I think she and the House c`n usefully benefit from an explanation

:01:58. > :02:02.which on this occasion - and I emphasise on this occasion- I am

:02:03. > :02:06.happy to provide. It is understandable that she initially

:02:07. > :02:13.surmised that new clause 62 should have been certified as relating to

:02:14. > :02:19.Wales, as well as to England. But, the reality is, as close ex`mination

:02:20. > :02:26.testifies, the application to Wales falls into the category of linor or

:02:27. > :02:33.consequential as - and this is the crucial point - it makes no change

:02:34. > :02:38.in the law applying in Wales, and so, in the view of the chair, which

:02:39. > :02:45.was informed by the combined advice of the clerks and the officd of

:02:46. > :02:52.Speaker 's counsel, it was rightly certified as relating exclusively to

:02:53. > :02:57.England. I do not in general intended to explain my decisions in

:02:58. > :03:02.this way, and that is why I emphasised that I was happy on this

:03:03. > :03:08.occasion to provide an expl`nation, but as this is the first occasion of

:03:09. > :03:17.a legislative grand committde and the suggestion, which I absolutely

:03:18. > :03:22.accept was honest and well-intentioned, of error on the

:03:23. > :03:28.part of the chair, is on thd record, I have thought it best to ptt the

:03:29. > :03:34.matter straight. That said, I should also like to take this opportunity

:03:35. > :03:41.to say to all members that the whole point of my publishing provhsional

:03:42. > :03:49.certificates is to give thel ample opportunity to make representations

:03:50. > :03:55.if they think that an error has been made or are they wish simplx to

:03:56. > :03:58.express a contrary view before I am required to make a decision which

:03:59. > :04:02.must then be regarded, for reasons with which the house will bd well

:04:03. > :04:11.the milieu come as final and not subject to further appeal. ,- will

:04:12. > :04:14.be well familiar, as final. The proper Channel 4 representations on

:04:15. > :04:19.the draft or provisional certificate is via the clerk of the Ashlead

:04:20. > :04:25.registration in the public bill office. I hope that is -- is through

:04:26. > :04:32.the clerk of registration. H hope that sell pulled to the honourable

:04:33. > :04:35.lady and the House. We will hear from the honourable lady.

:04:36. > :04:41.I am enormously grateful to you for making that statement on thhs. I

:04:42. > :04:44.have noted that it is in fact an exception on this occasion. Bearing

:04:45. > :04:54.in mind what the Speaker has said, may I just note for the record that

:04:55. > :04:57.the four members who represdnt Northern Ireland constituencies

:04:58. > :05:03.Sinn Fein members, do receive report -- support for Edinburgh stdel and

:05:04. > :05:07.secretarial assistance. I sht as an independent member representing

:05:08. > :05:11.North Down and is -- receivdd no additional funding for secrdtarial

:05:12. > :05:15.or administrative assistancd. In light of the very comforted its

:05:16. > :05:18.certification process now introduced which affects me and other

:05:19. > :05:24.representatives from Northern Ireland, I wonder if the Spdaker

:05:25. > :05:27.would give some consideration to additional support for membdrs like

:05:28. > :05:34.me when we have two go throtgh the certification list. -- clean we must

:05:35. > :05:39.go through. -- when we must go through.

:05:40. > :05:42.It is not for me to consider the provision of additional support in

:05:43. > :05:52.the sense in which she implhes it, that is to say financially paid for

:05:53. > :05:55.support. Secondly, and I intend no discourtesy to the honourable lady

:05:56. > :05:58.and I am not being pedantic, I am trying to be precise, there is a

:05:59. > :06:04.real sense in which the honourable lady does not go through thd

:06:05. > :06:07.certification process. I do, that is the responsibility of the chair with

:06:08. > :06:12.which I have been invested by the House. Thirdly, and I am re`lly

:06:13. > :06:16.trying to be helpful to the honourable lady and to the House in

:06:17. > :06:22.the context of what is a new procedure, although it is not for me

:06:23. > :06:27.to pledge or to hint at any additional support of a kind that I

:06:28. > :06:35.think she might have had in mind, what the honourable lady dods have

:06:36. > :06:40.is the support of the clerks and other procedural specialists in this

:06:41. > :06:49.house. The honourable lady knows well the route to the table on us --

:06:50. > :06:57.table office, and I if I max say so think she should take advantage of

:06:58. > :07:02.their expertise. Our bewiggdd friends have considerable expertise

:07:03. > :07:06.in these matters. They are not only prepared to advise the honotrable

:07:07. > :07:13.lady and any other member, they are positively excited by the prospect

:07:14. > :07:17.of doing so. The fact that they are excited by the prospect, I say to

:07:18. > :07:20.the shadow leader of the hotse, rather suggests they will h`ve a

:07:21. > :07:24.smile on their face at the time And they have now. I hope that will do

:07:25. > :07:29.for today. The honourable l`dy and I know each other well and if she has

:07:30. > :07:31.further difficulties in the future I am always pleased to hear from her

:07:32. > :07:38.and do try to assist her and any other member in this or any other

:07:39. > :07:40.matters. We now come to the ten minute rule

:07:41. > :07:49.motion. Mr Toby Burtons. I beg to of that league be given to

:07:50. > :07:52.provide for a Roof earning wish National Anthem to be used `t

:07:53. > :07:56.sporting occasions where a piece of music is required. I would like to

:07:57. > :08:00.say at the outset that I'm neither a Republican nor an atheist nor an

:08:01. > :08:04.English nationalist. I will speak more about that theme shortly.

:08:05. > :08:10.Members should detection of stellar tea by me towards God, Her Lajesty

:08:11. > :08:13.The Queen, God staved the Qteen or the United Kingdom. It is precisely

:08:14. > :08:16.out of respect for preserving many of these things that I belidve the

:08:17. > :08:20.time has come to consider the question of an English National

:08:21. > :08:23.Anthem. I would like to record the excellent work already done on this

:08:24. > :08:26.issue by the Honourable member for Leeds North West, the member for

:08:27. > :08:30.Shrewsbury, and the member for Romford. This is a cross-party

:08:31. > :08:33.campaign and I believe the Prime Minister has also shown somd

:08:34. > :08:38.sympathy for the argument of an English National Anthem. Thd level

:08:39. > :08:42.of interest confirms to me `nd anthem for England is a movdment

:08:43. > :08:46.whose time has come. As is often the case, fries in this Parliamdnt, we

:08:47. > :08:49.must catch up with public opinion and allow the voice of Engl`nd to be

:08:50. > :08:55.heard. I spoke with radio stations in all corners of England this

:08:56. > :08:58.morning, such was the interdst in debating on what the anthem should

:08:59. > :09:05.be full to be provoked on the streets of towns far and wide, each

:09:06. > :09:10.different area reflect the Divis us of our multifaceted nation. I want

:09:11. > :09:16.silky area was that thought it should be Heaven Knows I'm Liserable

:09:17. > :09:21.Now, it will remain a secret between myself and, this was BBC Hulberside,

:09:22. > :09:25.that was reflected that each local area has its own sense of what

:09:26. > :09:28.Englishness means and it's often seemed incongruous to me th`t when

:09:29. > :09:31.England has played against other home nations on the football or

:09:32. > :09:35.rugby fit that was the Welsh or Scots sing and anthem that reflects

:09:36. > :09:39.their nation's identity, England should sing about Britain. Ht

:09:40. > :09:42.reflects a sense that we sed Britain and England as synonymous and this

:09:43. > :09:46.not only can I does English and option to celebrate the nathon that

:09:47. > :09:49.is being presented, but is `lso a cause resentment amongst other

:09:50. > :09:53.countries in the British Isles who feel that England have requhsitioned

:09:54. > :09:56.the song. I have deliberately not referred to fight on the situation

:09:57. > :10:00.and occasions from Northern Ireland of what is discussed today. While

:10:01. > :10:03.this bill is the degree abott England and would have no

:10:04. > :10:07.jurisdiction over Northern Hreland whatsoever, I've received

:10:08. > :10:09.considerable interest from Northern Ireland so I will respond to that in

:10:10. > :10:13.a moment. I would like to s`y little about the current situation.

:10:14. > :10:15.National anthems are matter of convention and the British National

:10:16. > :10:21.Anthem is accepted as God S`ve The Queen. This is not enshrined in law

:10:22. > :10:27.anywhere. The first teen singer National Anthem with the Welsh Rugby

:10:28. > :10:32.to in response to the New Zdaland Hakka. Since then the Welsh edition

:10:33. > :10:35.of singing land of my Fathers was given a Welsh flavour to evdry

:10:36. > :10:42.sporting contest they compete in. Flower of Scotland has been used as

:10:43. > :10:44.a National Anthem by the Scotland national rugby team for each of

:10:45. > :10:52.their defeats, or should I say matches. I want to speak brhefly of

:10:53. > :10:55.Northern Ireland. There was an exception. I recognise that matters

:10:56. > :11:00.of the cost juice and are particularly keenly felt in Northern

:11:01. > :11:03.Ireland and this bill only reformers to an English consultation. The

:11:04. > :11:07.Northern Ireland football tdam the singer God Save The Queen and I ve

:11:08. > :11:13.had a single contact from mddia citizens in Northern Ireland,

:11:14. > :11:15.interestingly collars to BBC radio Northern Ireland seeming disaster by

:11:16. > :11:18.the idea of people being given a choice but that will be the matter

:11:19. > :11:22.from Northern Ireland. I don't believe England should be forced to

:11:23. > :11:25.make their decision based upon the fact it might cost pressure to be

:11:26. > :11:29.put on authorities in Northdrn Ireland to make a different decision

:11:30. > :11:33.themselves. Cons -- in cost additional matters is better to

:11:34. > :11:35.allow the voice of the people to be heard and to dictate if at `ll

:11:36. > :11:39.possible. The important steps towards making the spot is ly

:11:40. > :11:42.Scottish Parliament the most evolved in the world, and other

:11:43. > :11:46.devolutionary measures, mean we need a fresh assessment for Engl`nd and

:11:47. > :11:49.Britain as part of re-establishing the distinct identities of before

:11:50. > :11:53.nations that make up the UK of Great Britain and Northern Ireland. I

:11:54. > :11:57.don't believe that means we should fear recognising England as an

:11:58. > :12:03.entity, but we should welcole the opportunity to be establishdd idea

:12:04. > :12:07.that the UK is a union of four separate nations with their own

:12:08. > :12:15.identities that are part of a wider union further on mutual good. It is

:12:16. > :12:21.remarkable for me that foot`ge of the 1966 World Cup, it was ` proud

:12:22. > :12:26.occasion and on that occasion, if you look on the ground you so you

:12:27. > :12:32.the union Jack, even in the 199 World Cup, England fans completed

:12:33. > :12:35.the union Jack. It was in 1896 and the European Championship, possibly

:12:36. > :12:38.because England were drawn to play against Scotland, that the flag of

:12:39. > :12:42.St George came to be seen as the flag of England and the union Jack

:12:43. > :12:46.is now virtually disappeared at Wembley when England are pl`ying. In

:12:47. > :12:49.2010 the Commonwealth Games Council for England conducted a poll of

:12:50. > :12:54.members of the public that decided the anthem for the 2010 Comlonwealth

:12:55. > :12:58.Games should be Jerusalem that at the options were God Save The Queen,

:12:59. > :13:02.Jerusalem and land of Hope `nd Glory. Jerusalem was the cldar

:13:03. > :13:07.winner with 52% of the vote. Land of hope and glory received 32 cassette

:13:08. > :13:10.and God Save The Queen just 12% Jerusalem is a favourite choice of

:13:11. > :13:13.those who voted in the Commonwealth Games ball, so it seems to be an

:13:14. > :13:18.early favourite amongst those who have engaged with me amongst the

:13:19. > :13:21.public. Campaign group In That My Heart is competing for Jerusalem to

:13:22. > :13:27.play for England rugby matches and that levels of what it seems like if

:13:28. > :13:30.all gone -- a foregone conclusion. I have no way of knowing whether there

:13:31. > :13:37.is a way of putting people off William Bates' classic chewhng but I

:13:38. > :13:41.suspect driving around Parlhament Square with a van blaring it out

:13:42. > :13:45.might be a way to achieve that. You cannot always choose your friends in

:13:46. > :13:49.these matters. Nonetheless, I welcome the fact they are

:13:50. > :13:52.enthusiastic. The Zionist mhnd agent to bring this bill to parli`ment

:13:53. > :13:59.there has been widespread coverage and there has been lots of support,

:14:00. > :14:03.a daily Mirror poll said 71$ were in favour of an English Nation`l Anthem

:14:04. > :14:08.and we need a more formal attempt to take peoples of the nation. My bill

:14:09. > :14:16.will not specify what anthel should be chosen, my bill puts a dtty under

:14:17. > :14:18.Secretary of State for culttre, media and sport told a constltation

:14:19. > :14:22.across England and will conclude what the National Anthem should be

:14:23. > :14:25.and at the end of the consultation will call me secretary of state to

:14:26. > :14:28.rise to the football that she Robbie football union come netball and any

:14:29. > :14:31.other sporting bodies that have athletes or teams of athletds

:14:32. > :14:35.representing England and informed than the English National Anthem

:14:36. > :14:38.should be used in the event that a piece of music is acquired dither

:14:39. > :14:42.prior to the contest or at the awarding of medals. Once thd bill

:14:43. > :14:45.has been passed it will be the section states to decide wh`t form

:14:46. > :14:50.the consultation should takd and what the contenders should be.

:14:51. > :14:53.Alongside the choices listed by the Commonwealth Games, anthems like I

:14:54. > :14:56.vowed to be my country and they will always be in England have bden

:14:57. > :15:00.suggested. Others believe it could be opportunity for the X Factor

:15:01. > :15:04.style programme to combine traditional choices alongside maybe

:15:05. > :15:08.some newly commissioned opthons The opportunity for this to be ` real

:15:09. > :15:12.moment of engagement with the English people about this specific

:15:13. > :15:15.aspect of our future directhon is significant. This idea has had many

:15:16. > :15:20.positive reviews, including supportive comments -- colulns in

:15:21. > :15:23.the daily Mirror and the Sunday express. I was responded to read

:15:24. > :15:28.that a friend of Her Majestx considered the idea was rudd. But

:15:29. > :15:31.having upmost respect for the inventors of the lady concerned I

:15:32. > :15:35.fear the response betrays the extent to which the question of Englishness

:15:36. > :15:38.is passed to buy and lead the nations have chosen to no longer use

:15:39. > :15:41.the British anthem, it's too late for this to be a question of all

:15:42. > :15:45.component parts of Britain `cting in the same way, so it makes England

:15:46. > :15:49.the outlier. I hope the house give support for this important bill and

:15:50. > :15:52.while I accept that the Sunday should be more important issues with

:15:53. > :15:55.you to consider, the issue of national identity is a powerful one

:15:56. > :16:00.and my speed is that ignoring the issue only allows it to fester. I

:16:01. > :16:03.believe the consultation th`t my bill proposes will lead to `

:16:04. > :16:07.national conversation across England and ultimately the voice of opinion

:16:08. > :16:13.will be heard. Whatever it was the people make, it will be the majority

:16:14. > :16:17.views and we in this house can do no better than make sure the voice of

:16:18. > :16:24.England is heard. The questhon is that the honourable member have

:16:25. > :16:29.leave to bring in the bill. Thank you Mr Speaker. I rise to oppose

:16:30. > :16:34.this bill. I congratulate the honourable gentleman for just - for

:16:35. > :16:37.Chesterfield the following hn the footsteps of Flanders and Swann

:16:38. > :16:43.Some years ago they proposed that England should have its own National

:16:44. > :16:47.Anthem and they came up with the English, the English, the English

:16:48. > :16:51.were best. I will not go through all the lines cause they are not a great

:16:52. > :16:56.advocate of political correctness. Some elements in this modern age may

:16:57. > :17:01.cause some discombobulated `nd to some of our honourable membdrs.

:17:02. > :17:03.Particularly my friends in the SNP for that there's an excellent line

:17:04. > :17:09.about the Greeks and Italians eat garlic in bed, something to be

:17:10. > :17:16.strongly advised against as an unpleasant and somewhat malodorous

:17:17. > :17:22.habit. Actually, I oppose this proposal for deep and seriots

:17:23. > :17:29.reasons. What greater pleastre can there be for a true born Englishman

:17:30. > :17:36.or true born English woman to listen to our own National Anthem. A

:17:37. > :17:40.National Anthem for our old country, for our whole United Kingdol, of

:17:41. > :17:47.which England is but a part, but an important part. And to listdn to

:17:48. > :17:51.those words that link us to our sovereign, who is part of that chain

:17:52. > :17:58.that takes us back to our mdmorial history to sing, or if one cannot

:17:59. > :18:05.sing, to listen to the music, the June Zebre June that invokes our

:18:06. > :18:14.loyalty to our nation has bdcome over the years. A tune that has been

:18:15. > :18:21.popular since 1745 when it hs thought to have started in response

:18:22. > :18:24.to the Jacobite rebellion. H'm usually in favour of Jacobites from

:18:25. > :18:32.these reasons. On this occasion they were traitors, and not to bd

:18:33. > :18:35.encouraged. The words that develops then and have remained constant

:18:36. > :18:42.changed only when we have a woman on the throne rather than a man. A tune

:18:43. > :18:48.that encapsulates the patriotism that we wish to express when

:18:49. > :18:51.supporting a team and when the honourable gentleman for

:18:52. > :18:57.Chesterfield said that now Dnglish crowds take St George's flag rather

:18:58. > :19:01.than the union Jack, to me that as a matter of pity, shame that we have

:19:02. > :19:05.given up viewing ourselves `s one year it is kingdom whether we are

:19:06. > :19:11.supporting England, Scotland, Wales or Northern Ireland and it tsed

:19:12. > :19:16.expressions of individual nationalism or a dish uniting factor

:19:17. > :19:23.in our country. In a countrx that we ought to want to make more tnited

:19:24. > :19:25.and they have taken to having Jerusalem as the honourable

:19:26. > :19:30.gentleman mentioned at various sporting occasions, it is stng at

:19:31. > :19:35.the beginning of Test matchds in some grounds, and glad to s`y this

:19:36. > :19:42.does not seem to happen at Lord s, which think is an indication of a

:19:43. > :19:45.proper ordering of things, H'm not sure that singing a jolly ttne at

:19:46. > :19:51.the beginning of a match is particularly dignified and

:19:52. > :19:54.represents the nation as thd nation of what he represented. And they

:19:55. > :20:00.have taken to Jerusalem and juridical has a good tone to it It

:20:01. > :20:06.is a happy song for people to sing and we should all be in favour of

:20:07. > :20:10.happiness. But does it really make us have that patriotically pride

:20:11. > :20:14.swell up in ours in the way that we would like. When we think of the

:20:15. > :20:22.words of Jerusalem, there is a question I must pose that it is a

:20:23. > :20:27.highly speculative question, and did those feet in ancient times, this

:20:28. > :20:31.question being asked? But I come from Somerset and I know thd answer.

:20:32. > :20:36.It is well-known that Christ was taken by Joseph of Arimathe` to

:20:37. > :20:43.Glastonbury. Why injuries long would anyone want to sing did, whdn we

:20:44. > :20:47.know the truth is that Christ not only want to Glastonbury but also in

:20:48. > :20:56.that old Somerset saying to a trip to assert the truth of anything that

:20:57. > :21:02.Christ also went, probably `lso as a young man to pretty. Do you possibly

:21:03. > :21:07.want to have an anthem that questions is undeniable truth of

:21:08. > :21:10.God's on county, that countx is particularly selected for vhsitation

:21:11. > :21:17.by Aaron Lord when he was on earth? Not only does this proposed bill

:21:18. > :21:22.seeks to regularise something that in our particularly brilliant

:21:23. > :21:25.British way we have never previously needed to regularise, that `re

:21:26. > :21:32.rational anthem has come about overtime without needing regulation

:21:33. > :21:39.or bureaucracy or any of thdse things we dislike. That is ` reason

:21:40. > :21:44.for opposing it. It does reduce that sense of devotion to our sovereign

:21:45. > :21:49.that we ought to have, it is proper to have, indeed, that we ard firm or

:21:50. > :21:53.take oath that we will have when we swear or affirm as members of

:21:54. > :21:57.Parliament, and that would be a sad thing to lose. It lacks the courage

:21:58. > :22:04.of Flanders and Swann to go the whole hog and be really properly

:22:05. > :22:06.eccentrically patriotically. It is a second-tier level of Nation`l

:22:07. > :22:10.Anthem, though I must confess I was relieved that it was proposdd the

:22:11. > :22:17.anthem might be a song norm`lly sung at the Labour Party conference, that

:22:18. > :22:19.the one chosen was not the red flag. The with the current trend hn the

:22:20. > :22:24.leadership of the Labour Party would not surprise me if in a year we have

:22:25. > :22:30.a private members bill making singing the red flag compulsory as

:22:31. > :22:35.well. I'm glad to get support from the front bench to the side of the

:22:36. > :22:40.aisle, where they probably think it's hardly good idea. We don't want

:22:41. > :22:46.to get them away from the wrong song, one might as -- offend some --

:22:47. > :22:51.since builders, we should affirm our loyalty to the sovereign lady when

:22:52. > :22:54.we should confound politics and frustrate his knavish tricks, Mr

:22:55. > :22:55.Speaker. The question is th`t the honourable member have leavd to

:22:56. > :23:07.bring in The question is that the Honourable

:23:08. > :23:16.Member have leave to bring hn the Bill. As many as are of the opinion,

:23:17. > :23:19.say "aye". To the contrary, "no . The Ayes have it.

:23:20. > :23:23.Who will bring in the bill? Angela Smith, Bob Stewart, Michael

:23:24. > :23:35.Fabricant, Sir Gerald Howard and myself, sir.

:23:36. > :24:06.English national anthem Bill. Second reading, what day? Friday the

:24:07. > :24:12.4th of March. Thank you, order. We come now to the main bushness,

:24:13. > :24:17.opposition Day 15th awarded today, and to the motion in the nale of the

:24:18. > :24:22.leader of the Scottish National Party. To move the motion on trade,

:24:23. > :24:28.exports, innovation and productivity, I call Mr Stewart

:24:29. > :24:32.Hosie. Thank you, Mr Speaker, I beg to move

:24:33. > :24:38.the motion in the name of mxself at my honourable friends. It is a

:24:39. > :24:44.serious debate and it is appropriate, I think, that we do it

:24:45. > :24:50.today, given the news published yesterday that UK industrial output

:24:51. > :24:55.has suffered its sharpest f`ll since 2013. And, of course, the ftrther

:24:56. > :24:59.assessment yesterday that ddscribes how real terms in earnings hn the UK

:25:00. > :25:08.are still now substantially lower than they were in 2009, and even GDP

:25:09. > :25:19.growth over the last decade or so has been lower than Japan dtring its

:25:20. > :25:23.decade of stagflation. I thhnk it is important when we recognise the

:25:24. > :25:26.matters we are going to address are not based on some short-terl issue,

:25:27. > :25:32.this is not a quick politic`l hit, this is trying to get to thd root

:25:33. > :25:38.cause of a long and systemic problem in the UK, the failure to address

:25:39. > :25:47.trade and exports, innovation and productivity in total over tp

:25:48. > :25:50.prolonged period of time. The reason we have chosen to debate all of

:25:51. > :25:58.these matters is that they `re licked. The debate is also, rightly,

:25:59. > :26:04.because it is also partly about this imbalance in the UK economy. That in

:26:05. > :26:07.balance, or more accurately those imbalances, are now actuallx

:26:08. > :26:11.recognised by this government, but our judgment is they will not and

:26:12. > :26:17.cannot be resolved firstly without the real political will to do so

:26:18. > :26:23.we are discussing today are fully we are discussing today are fully

:26:24. > :26:27.and properly addressed as wdll. The imbalances we talked of in the

:26:28. > :26:32.economy are not simply betwden England and Scotland, or London and

:26:33. > :26:35.the rest of the UK, a city previously described by a mhnister

:26:36. > :26:44.as a black hole sucking the sources and talent out of everywherd else in

:26:45. > :26:47.the UK, but also, still, sadly, imbalances between manufacttring and

:26:48. > :26:52.services, between businesses which export and those which do not,

:26:53. > :26:59.between companies which innovate and those which do not. And the impact

:27:00. > :27:06.of all of this is most starkly seen in the balance of trade numbers For

:27:07. > :27:13.the full year in 2014, the TK ran a balance of trade deficit of ?93

:27:14. > :27:21.billion. For the same year, the deficit in the trade and goods was

:27:22. > :27:30.quite extraordinary ?123 billion. That is ?123 billion in the red

:27:31. > :27:35.simply in the trade and goods. And the impact in GDP, as is well-known

:27:36. > :27:40.and published by the governlent was negative, and, unsurprisingly, the

:27:41. > :27:43.summer Budget confirmed it would remain negative through every single

:27:44. > :27:53.year of the forecast period in this Parliament. Through two 2020. He

:27:54. > :27:56.referred to Japan in his introductory remarks.

:27:57. > :28:00.He will not have missed the fact that Europe has been in recdssion

:28:01. > :28:03.for much of the period that this economy has been growing and has an

:28:04. > :28:09.inevitable impact on our balance of trade, our biggest partners.

:28:10. > :28:13.I will come to that. If the trade deficit was simply a conseqtence of

:28:14. > :28:17.the deep recession, then thd honourable gentleman would be right,

:28:18. > :28:23.but as I will demonstrate l`ter this is not an issue that has gone on for

:28:24. > :28:30.five years or ten years, or 20 years, or 30 years, but 50 xears,

:28:31. > :28:32.and this is the issue, this deep, underlying, systemic issue hs the

:28:33. > :28:38.one that we actually need to address. I was saying the

:28:39. > :28:42.contribution to GDP is negative for the entire forecast period `nd that

:28:43. > :28:46.was published in the summer Budget, and again in the Autumn Statement,

:28:47. > :28:52.but those figures, worryingly, were actually marked down, actually worse

:28:53. > :28:56.than the corresponding forecast published in the spring Budget

:28:57. > :29:02.before the election. What wd are seeing is not a stabilisation, isn't

:29:03. > :29:07.a recovery which allows somd sense of normality, but a continuhng

:29:08. > :29:11.decline, and that would appdar brash and I will demonstrate this later, I

:29:12. > :29:16.hope - in terms of almost every metric we look at.

:29:17. > :29:20.Does the Honourable Member `lso accept that the OBR expects

:29:21. > :29:26.productivity growth to return to its historic average by the end of 017?

:29:27. > :29:30.I have seen the OBR forecasts, I will quote some of them latdr, but I

:29:31. > :29:35.am also taken with what the Chancellor said more recently than

:29:36. > :29:39.the last OBR forecast, which is it is not now Mission accomplished

:29:40. > :29:45.almost as if he is getting his excuses in first and preparhng to

:29:46. > :29:48.blame other people. I have seen the OBR forecast, but things ard not all

:29:49. > :29:55.hunky-dory, everything in the garden is not rosy, and given we are

:29:56. > :30:00.looking at GDP growth over ` decade worse than Japan's lost dec`de, it

:30:01. > :30:05.would be wrong to be complacent in the way some of her governmdnt are

:30:06. > :30:09.doing. When the Chancellor said to the

:30:10. > :30:16.country at large and the Tory press in particular that the country was

:30:17. > :30:19.in... The economy was running into the buffers, wasn't he really

:30:20. > :30:27.demonstrating that the long,term economic plan was just a mirage

:30:28. > :30:33.The honourable gentleman is absolutely right, the long-term

:30:34. > :30:37.economic plan is a sound bite. It was predicated on the deficht being

:30:38. > :30:44.reduced, the debt being redtced the borrowing falling to nearly ?20

:30:45. > :30:49.billion last year. Every single one of the targets the government set

:30:50. > :30:54.they failed to meet. The Ch`ncellor did not meet a single one of their

:30:55. > :31:02.key fiscal targets he set for himself in the last Parliamdnt. But

:31:03. > :31:08.the key thing about the imp`ct of trade and exports on GDP is that it

:31:09. > :31:14.is negative and has been marked down. I would ask the hosts to think

:31:15. > :31:20.just how different that is to the promise, that reality is to the

:31:21. > :31:24.promise made by the Chancellor when he stated exports would be `

:31:25. > :31:27.significant contributor to GDP growth primarily to shift the

:31:28. > :31:34.economy away from our reliance on household consumption. As wd saw

:31:35. > :31:39.yesterday, because industri`l exports are down and they are likely

:31:40. > :31:45.to continue to fall, certainly not to grow in the way he has promised,

:31:46. > :31:49.we will continue to have a dependence on household consumption

:31:50. > :31:54.and a rise in household debt which would be inconsistent with `

:31:55. > :31:57.properly rebalanced economy. I think a great deal of private

:31:58. > :32:00.sector industrial investment over the last 30 years has been connected

:32:01. > :32:04.with the oil industry, and thinking of the threat to jobs and working

:32:05. > :32:10.families in Scotland in particular, would my honourable friend comment

:32:11. > :32:13.system of exploration credits, successfully introduced in Norway

:32:14. > :32:17.some years ago, to kick-start exploration as one ways of

:32:18. > :32:21.addressing this crisis? After 30 years of raking in ?30

:32:22. > :32:28.billion of revenue, shouldn't it be payback time for North Sea workers?

:32:29. > :32:33.It certainly should in the sense that this sector is not simply

:32:34. > :32:36.important for Aberdeen or for Scotland, but for a supply chain

:32:37. > :32:45.throughout the UK. Indeed, `s the Right honourable gentleman for

:32:46. > :32:47.Rutland said at First Minister s Questions, you laid out his

:32:48. > :32:52.question, the potential dam`ge should the sector continue to

:32:53. > :32:58.suffer. -- he laid out. This government should do many things.

:32:59. > :33:04.Continue to protect people who want to enter that sector, that they are

:33:05. > :33:07.properly trained, to continte to support the supply chain in the

:33:08. > :33:13.north sea basin and internationalise. They should look

:33:14. > :33:16.again at supporting the indtstry as it cuts costs. They should look at

:33:17. > :33:21.the overall fiscal framework, because that is our substantial

:33:22. > :33:30.cost, and look again at all of the credits available, explorathon or

:33:31. > :33:33.production, geographic areas or for specific all types, to absolutely

:33:34. > :33:38.maximise the longevity and employment and contribution to the

:33:39. > :33:46.economy of a sector which, `gain he is right to remind the government,

:33:47. > :33:52.has raked in for them more than ?300 billion since oil started coming

:33:53. > :33:56.ashore. Does he see any inconsistency in the

:33:57. > :34:02.answer which he has just given to his colleague between incre`sing our

:34:03. > :34:08.looking for ways of increashng the output of North Sea oil and the

:34:09. > :34:13.Scottish National Party's or name of totally decarbonising energx

:34:14. > :34:19.production in Scotland? -- the Scottish National Party's t`rget.

:34:20. > :34:22.I think the decarbonisation of electricity production is a sensible

:34:23. > :34:26.thing for large numbers of reasons, and that may well include c`rbon

:34:27. > :34:30.capture and storage. Of course we have seen on a number of occasions

:34:31. > :34:33.over the last five years, vdry recently with this government, the

:34:34. > :34:39.cancellation of the competition to actually develop an industrhal sized

:34:40. > :34:46.test-bed to show the efficacy of this technology which would make us

:34:47. > :34:54.a world leader. I will make a little progress and then happily ghve way.

:34:55. > :34:59.When we are talking about exports, remember when the Chancellor said in

:35:00. > :35:05.his 2012 speech about acknowledging the UK's falling share of world

:35:06. > :35:11.exports, still said we wantdd to double exports to ?1 trillion this

:35:12. > :35:22.decade. Mr Speaker, total export sales in 2013 were ?521 billion A

:35:23. > :35:26.reasonable start. That fell to 13 billion in 2014. The numbers are

:35:27. > :35:31.moving in the wrong direction, yet the Chancellor and this govdrnment

:35:32. > :35:37.in this Parliament still expect us to believe exports could effectively

:35:38. > :35:43.double over that period. Indeed I think the OBR's most recent

:35:44. > :35:49.forecasts suggest we will mhss that target by around 500 and us back to

:35:50. > :35:58.?350 billion. The targets sdt are set to let -- simply unachidvable.

:35:59. > :36:03.-- miss that target by ?350 billion. The jobs of a growing number of

:36:04. > :36:06.people depend on a thriving export market. It hopes and aspirations of

:36:07. > :36:11.the people in Scotland and throughout the UK for a real,

:36:12. > :36:17.rebalanced economy must depdnd more on the rhetoric and pipe drdams of

:36:18. > :36:23.an out of touch Chancellor. But that was not the start and end of the

:36:24. > :36:26.Chancellor's and the governlent s rhetoric on exports. They ddscribed

:36:27. > :36:30.how they wanted to make the UK the best place in Europe to start and

:36:31. > :36:34.grow businesses, encourage investment and exports as a route to

:36:35. > :36:41.the more balanced economy wd want to see. He said, and I will quote, so,

:36:42. > :36:46.this is our plan for growth. We want the words made in Britain, created

:36:47. > :36:52.in Britain, designed, invented in Britain, to drive the UK for Britain

:36:53. > :36:56.carried aloft by the march of the makers, powerful words and, given

:36:57. > :37:02.the reality, no more than r`ther empty rhetoric.

:37:03. > :37:08.I am grateful to him for giving way. He is right to point out thd

:37:09. > :37:12.importance of exports, although the gap has been consistently f`lling in

:37:13. > :37:15.the last two years, but would he not agree the way to increase exports is

:37:16. > :37:23.through innovation, new technology and through investment much all of

:37:24. > :37:26.which, by being part a largdr UK through the technology strategy

:37:27. > :37:30.board he is likely to get in greater quantities than if Scotland were on

:37:31. > :37:35.its own? I agree with the honourable

:37:36. > :37:39.gentleman's assessment that we need more innovation, or exports, more

:37:40. > :37:44.technology and investment, `nd I would come to all of these things.

:37:45. > :37:47.We will have a debate he and I, the government and I come over precisely

:37:48. > :37:50.what it is the government are doing, because I think his assertion that

:37:51. > :37:59.being part of the UK will allow these things to be happening and be

:38:00. > :38:03.bigger is tenuous at best and not actually confirmed by the rdality.

:38:04. > :38:08.But back to the Chancellor's overblown march of the makers

:38:09. > :38:15.speech. If those words appe`red far-fetched when he first s`id them,

:38:16. > :38:20.they really do now in light of the reality, shallow and empty, when

:38:21. > :38:26.confronted with what is going on. I also note that this links into the

:38:27. > :38:31.intervention, that in the l`st Party, another Tory lead government

:38:32. > :38:34.released a press release about business investment, are balanced

:38:35. > :38:39.and sustainable economy, all of the things being discussed, boasted of

:38:40. > :38:43.investment into the green investment bank, another institution which we

:38:44. > :38:51.supported which we believe had and indeed did deliver support `nd

:38:52. > :38:54.growth in a new industry but which now, incredibly, has been

:38:55. > :38:57.systematically undermined bx this government. As is the commitment to

:38:58. > :38:59.the green economy generally by many of the changes which they h`ve

:39:00. > :39:11.announced since last May. one of the levers that is at the

:39:12. > :39:13.disposal of any Government of increasing exports is to

:39:14. > :39:19.aggressively push new free-trade agreements. Would you agree with the

:39:20. > :39:22.SNP have been less than fulsome in their support for free-tradd

:39:23. > :39:29.agreements around the world, particularly T10, the SNP edition is

:39:30. > :39:34.opaque at best? Desmond T10. It is not opaque. Let me be reallx clear

:39:35. > :39:38.she honourable gentleman. Wd welcome trade agreements. We think trade

:39:39. > :39:42.agreements in general are a good thing. However, we will not counter

:39:43. > :39:50.a trade agreement which opens the door to the systematic undermining

:39:51. > :39:57.of our essential public services. That was not opaque, that w`s

:39:58. > :40:03.absolutely crystal clear. Mr Speaker, we need rather mord than

:40:04. > :40:08.words from this Government. Its action that we need in order to

:40:09. > :40:11.reverse a number of the declines, particularly in manufacturing.

:40:12. > :40:15.Indeed, to ensure that what I said at the beginning and the last

:40:16. > :40:22.quarter's following manufactured output does not become a pattern.

:40:23. > :40:27.That will at least in part, and this again answers the interventhon,

:40:28. > :40:35.require more innovation. Th`t is as much a part, I've given alrdady

:40:36. > :40:38.that is as much a part of btilding a larger, more productive and faster

:40:39. > :40:44.growing manufacturing base `s it is important in its own right. And we

:40:45. > :40:50.know about the positive imp`ct from innovation from many sources, not

:40:51. > :40:54.least the recent PwC global innovation survey. It is confirmed

:40:55. > :40:58.what it described as a direct link between companies which focts on

:40:59. > :41:04.innovation and successfully grow faster. Indeed, we know what I'm

:41:05. > :41:08.sure the minister will know, the UK's most innovative companhes grew

:41:09. > :41:12.an average of 50% faster th`n the least innovative but we also know

:41:13. > :41:21.there are substantial probldms to be overcome. So while 32% of UK

:41:22. > :41:28.companies so innovation as very important, to their success, the

:41:29. > :41:32.global figure was 43%. Whild 16 of UK companies so product in division

:41:33. > :41:40.-- innovation is a priority in the coming year, that was barelx half

:41:41. > :41:43.the global figure. Most worrying the UK, Scotland and image of the UK,

:41:44. > :41:47.has a clear competitive adv`ntage in the university sector in many ways,

:41:48. > :41:51.a significantly lower proportion of our businesses land to coll`borate

:41:52. > :41:56.with academics than their international competitors. H would

:41:57. > :42:01.like to say a little on that about the approach we have taken hn

:42:02. > :42:07.Scotland specifically to de`l with that issue. There has been funding

:42:08. > :42:12.approved for five new innov`tion centres, industrial biotech and

:42:13. > :42:16.agriculture, big data and construction. That funding hs put in

:42:17. > :42:20.place to build on the original three centres launched three years ago

:42:21. > :42:27.which covered medicine, centres of imaging and digital health. Growing

:42:28. > :42:34.areas for the future. Also the provision essentially of 78 million

:42:35. > :42:38.pounds to help the developmdnt of 1000 new inventions, products or

:42:39. > :42:42.services. Cas which also, and this addresses the international

:42:43. > :42:50.comparison, which will also support 1200 businesses directly work with

:42:51. > :42:55.universities. The UK, of cotrse has Innovate UK and we have looked

:42:56. > :42:58.closely at its delivery plan and there are things which the SNP would

:42:59. > :43:06.least the 1.5 billion global challenge fund. The overall policy

:43:07. > :43:14.that sees Innovate UK's funding model being changed so that by 020

:43:15. > :43:20.165 million of innovation Grants will be delivered as loans sent out

:43:21. > :43:25.all the wrong signals and wd are concerned might suppress essential

:43:26. > :43:30.innovation compared to our international competitors even

:43:31. > :43:33.further. That was the fear confirmed by KPMG's head of small bushness

:43:34. > :43:39.accounting when he said the measure was, and I quote, "A false dconomy

:43:40. > :43:43.that threatens to store the growth of small businesses." I will happily

:43:44. > :43:47.give way. Thank you. Would he agree that it sends all the blogs that are

:43:48. > :43:50.wrong signals to companies that I think you're investing becatse what

:43:51. > :43:56.it is saying is that the future is uncertain with this Governmdnt?

:43:57. > :44:00.Indeed it does. If one looks at some of the quotes from businessds when

:44:01. > :44:05.this was announced, they were extremely clear. They are h`ppy to

:44:06. > :44:10.seek bank funding and use their own resources. When they are undertaking

:44:11. > :44:13.what might be slightly riskx innovation and are in steep, there

:44:14. > :44:18.is no expectation there might be a little help from Government. That

:44:19. > :44:22.makes it is an expectation that if that is a grant the work can

:44:23. > :44:28.proceed, the thinking can go ahead, if it's alone requiring to be repaid

:44:29. > :44:31.that might tip the balance hn favour of the risk being too great and

:44:32. > :44:36.driving down innovation even further. The reason innovathon is so

:44:37. > :44:40.vital, particularly in manufacturing, and why it's so

:44:41. > :44:45.important to encourage it, hs that over the past 20 years as it has

:44:46. > :44:53.fallen, as a share of an Sthaan van Zyl and, manufacture outputs it

:44:54. > :44:57.exports jobs and manufacturhng output have also fallen. -- as a

:44:58. > :45:03.share of manufacturing outptt. One can see the speed and length of this

:45:04. > :45:11.decline from 30% of the economy in the 1970s to less than 10% today.

:45:12. > :45:16.From more than 20% of all jobs in the 1980s to only 8% today. From a

:45:17. > :45:24.quarter of all business invdstment in the 1990s to barely 15% today. We

:45:25. > :45:33.see the reduction in global export market share, in the OBR fiscal

:45:34. > :45:36.forecast, the most recent comics should be falling throughout the

:45:37. > :45:40.forecast period to the end of this Parliament. What is more worrying,

:45:41. > :45:45.Mr Speaker, is that the figtres in the November forecast are actually

:45:46. > :45:51.marks down in every single xear from the July forecast. Everything is

:45:52. > :45:55.going in the wrong direction and complacency from the Governlent and

:45:56. > :46:01.the plan they have, the limhted plan they have in place, is simply no

:46:02. > :46:07.longer enough. That is why we now need an unrelenting focus on

:46:08. > :46:11.innovation in manufacturing, one second, English and to tradd and

:46:12. > :46:15.exports. I will give way. I'm grateful. I do welcome this debate

:46:16. > :46:19.and his focus on rebalancing the stop it a huge issue but whdn we

:46:20. > :46:21.talk about rebalancing the dconomy we have to remember that thd

:46:22. > :46:25.recession we had into thous`nd and eight because it was financhal, was

:46:26. > :46:30.inevitably followed by monetary policy eating the floor and

:46:31. > :46:34.perpetuating high house prices, all those things you want to avoid as an

:46:35. > :46:38.economics as it has met Mrs D. Does he regret the role his partx played

:46:39. > :46:43.in advising Royal Bank of Scotland to precious baby and downright usher

:46:44. > :46:51.in the financial crash to bring down are furniture giant? There hs a

:46:52. > :46:58.historic disconnect, Mr Spe`ker The fight over ABN Amro was between the

:46:59. > :47:02.board of RBS and the board of Barclays. One of them called it

:47:03. > :47:06.wrong and one of them got ltcky I suspect that my input and the input

:47:07. > :47:11.of my honourable friends had precisely no bearing whatsodver on

:47:12. > :47:20.Mr Goodman's decision to persuade his boards to buy ABN and broke

:47:21. > :47:23.Quite extraordinary. I have said we need an underwriting focus on

:47:24. > :47:27.innovation in manufacturing in relation to trade and exports

:47:28. > :47:32.because although it suffered the largest falls and because the

:47:33. > :47:41.deficit in trade in goods is so large, manufacturing still `ccounts

:47:42. > :47:45.for 44% of all UK exports. @ny Government is about rebalancing the

:47:46. > :47:52.economy correcting the tradd deficit in goods that have a laser-like

:47:53. > :47:55.focus on encouraging innovation in manufacturing as well as currently

:47:56. > :48:02.supporting existing exporting businesses. This debate is lore than

:48:03. > :48:07.just about innovation manuf`cturing and exports, it's about boosting

:48:08. > :48:10.productivity. Vital because we know, this is undisputed, both Scotland

:48:11. > :48:17.and the UK said only towards the top of the third quartile of advanced

:48:18. > :48:21.countries by GDP per hour worked. Below many smaller European

:48:22. > :48:28.countries had importantly bdlow major competitors like the TS,

:48:29. > :48:33.Germany, France and even It`ly. I am pleased that Scottish output is now

:48:34. > :48:37.4% higher than precrisis levels that is a good thing, but clearly

:48:38. > :48:41.there is substantially more to be done. Not least because we know that

:48:42. > :48:46.you keep productivity growth is now you keep productivity growth is now

:48:47. > :48:52.1.3% a year, that is barely half the level of the 2% precrisis r`te. We

:48:53. > :48:58.know in Scotland there is a plan, an know in Scotland there is a plan, an

:48:59. > :49:00.economic plan based on four principles to boost producthvity. In

:49:01. > :49:04.investment in education infrastructure, internation`lisation

:49:05. > :49:10.and encouraging exports innovation we have discussed, being essential,

:49:11. > :49:16.aspect, inclusive growth. That aspect, inclusive growth. That

:49:17. > :49:20.latter point is vital because we know from the numbers, we'vd all

:49:21. > :49:28.seen them, that the UK lost 9% of GDP growth between 1990 and 201

:49:29. > :49:34.because of rising inequalitx and we are concerned this is a mistake

:49:35. > :49:38.being repeated by this Government with its arbitrary surplus fiscal

:49:39. > :49:44.rules requiring it to cut f`r more than is necessary to run a balanced

:49:45. > :49:50.economy and undermining, diluting the Government of resources needed

:49:51. > :49:56.to tackle inequality and actually maximise economic growth. I will

:49:57. > :50:00.happily give way. I'm grateful for the honourable member giving way. He

:50:01. > :50:04.reversed with positivity to the figures in Scotland. Is he `ware

:50:05. > :50:07.that boarding to the BBC Two hours ago Scotland's economy grew slightly

:50:08. > :50:14.over the summer but continudd to lag behind UK as a whole accordhng to

:50:15. > :50:18.official figures? Absolutelx first I was describing the growth shnce the

:50:19. > :50:24.precrisis level. The court during the quarter on quarter yearly

:50:25. > :50:28.figures are undeniable. That's why all I said we all have far lore to

:50:29. > :50:31.do. I make criticisms of thd Government where they are v`lid but

:50:32. > :50:37.I will not deny the numbers. I hope the honourable lady might w`nt to

:50:38. > :50:40.welcome the fact we are now 4% ahead of precrisis levels, notwithstanding

:50:41. > :50:45.some of the difficulties we've seen in the North Sea. There is puite a

:50:46. > :50:48.remarkable achievement when all of the actions of the Scottish

:50:49. > :50:51.Government and limited powers are actually brought to bear, and in

:50:52. > :50:59.terms of the deployment of those powers, the Minister is chuntering

:51:00. > :51:05.away on the Treasury bench `s she is want to do. She will be throwing her

:51:06. > :51:13.arms in the air harrumphing she wants to intervene. I'm happy to

:51:14. > :51:16.have the debate. In terms of the powers that have been deploxed in

:51:17. > :51:25.Scotland, we also have a Scottish business pledge which requires films

:51:26. > :51:29.Comintern of Scottish agenches supports, to seek to innovate as

:51:30. > :51:34.take expert opportunities and to pay the living wage as a part of the

:51:35. > :51:40.solution to tackling inequality and delivering the inclusive growth to

:51:41. > :51:47.avoid the loss of GDP output we saw in the 20 years to 2010. Repuires

:51:48. > :51:52.firms who want Scottish agency. I would encourage them to takd a

:51:53. > :51:55.similar approach, not least because are concerned about a lack of

:51:56. > :52:03.balance and the need for action to tackle the ongoing productivity

:52:04. > :52:08.challenge is shared by the HMF, often in aid of this Governlent The

:52:09. > :52:10.IMF make the point about thd need to listen wealth inequality. They make

:52:11. > :52:16.the point about the need to have increased spending on infrastructure

:52:17. > :52:22.and they also call for enhanced focus on decentralisation. H will

:52:23. > :52:26.happily give way. I'm grateful to the honourable gentleman. Hd's

:52:27. > :52:32.making some very important points about inequality. And the ilportance

:52:33. > :52:36.that the Government does not seem to be serious about addressing

:52:37. > :52:44.sustainable inequality, thex need to be investing more on people in low

:52:45. > :52:47.income and would using the gap - reducing the gap between people of

:52:48. > :52:53.low income. Interestingly point about productivity in relathon to

:52:54. > :52:56.this. Since 2006 what has the SNP been able to do to reduce the

:52:57. > :53:12.productivity gap? I do not have a 2006 to datd figure.

:53:13. > :53:17.I will happily provide that if I can get that number. But the entire

:53:18. > :53:22.point of tackling the attainment gap, about health, investing,

:53:23. > :53:26.supporting innovation, encotraging export, supporting, promoting and

:53:27. > :53:29.helping the delivery of paylent of the living wage, everything which

:53:30. > :53:36.can be done is being done and must be done, because it is all part of a

:53:37. > :53:40.project of lessening inequality to deliver precisely the inclusive

:53:41. > :53:46.growth that avoids the shortfall in economic growth which we have seen

:53:47. > :53:49.by the UK Government. I was making the point about some of the demand

:53:50. > :53:54.is by the IMF, and one of those was the enhanced focus on

:53:55. > :53:59.decentralisation. It is somdthing which is vital if we are to

:54:00. > :54:04.effectively use all the tools at our disposal to tackle the economic

:54:05. > :54:08.challenges we face. Let me give one example. Research and development

:54:09. > :54:11.tax credits to support innovation are a function of corporation tax,

:54:12. > :54:17.but as corporation tax is not devolved to Scotland one of the most

:54:18. > :54:19.important tools to help support that research is actually denied to the

:54:20. > :54:26.Scottish Government in their efforts to build on the work alreadx being

:54:27. > :54:31.put in place. That, frankly, in terms of the challenges we `ll face,

:54:32. > :54:35.is illogical. I will give w`y on that point.

:54:36. > :54:42.I am grateful to him for giving way, and he is right to highlight the

:54:43. > :54:45.role that devolved instituthons can play in helping to boost

:54:46. > :54:49.productivity. Can I comment to him the work of the greater Manchester

:54:50. > :54:57.combined authority, who in their new devolved functions have awarded

:54:58. > :55:03.funding to an English firm to be able to open a ?5.8 million cotton

:55:04. > :55:08.mill in my constituency, thd first cotton mill to open in greater

:55:09. > :55:11.Manchester for over 40 years? I welcome that intervention. I

:55:12. > :55:22.welcome that no, I hope it hs important point. There is no point

:55:23. > :55:25.in devolving powers, whether it is to Northern Ireland, Scotland,

:55:26. > :55:31.Wales, or anywhere else, thdre is no point devolving responsibilhties

:55:32. > :55:35.unless the funding and the `bility and authority to raise the cash goes

:55:36. > :55:41.with it. That is the weakness in some of the asymmetric devolution

:55:42. > :55:48.this government has put in place. However, the government we believe

:55:49. > :55:50.should look again at its decision to replace 165 million of innovation

:55:51. > :55:56.grants with loans. We believe it should deliver real devoluthon, not

:55:57. > :56:02.least of corporation tax and its associated credits, so thosd tools

:56:03. > :56:07.are able and available to all of the devolved administrations to maximise

:56:08. > :56:09.R support. I will give wax. While he is on the subject of

:56:10. > :56:12.Northern Ireland, we now have record Northern Ireland, we now have record

:56:13. > :56:16.employment here. We have higher levels of

:56:17. > :56:20.international development and investment than at any other time in

:56:21. > :56:26.history. Having a strong devolved aspect of trade investment helps

:56:27. > :56:32.competitiveness of the UK rdgions competitiveness of the UK rdgions

:56:33. > :56:35.and in particular Northern Hreland. Absolutely, the more we can devolve,

:56:36. > :56:39.not just authority but real power, the more people on the ground can do

:56:40. > :56:44.that, it is self-evidently the case. Your talk of record on clim`te is

:56:45. > :56:48.good, I think there is near record employment almost everywherd. The

:56:49. > :56:52.issue is not flat. The issud is that real term wages have fallen and

:56:53. > :56:57.remain five points lower th`n precrisis. If we are to drag living

:56:58. > :57:01.these things as well, but in general these things as well, but in general

:57:02. > :57:08.terms the devolution of real power is absolutely right. The government

:57:09. > :57:13.should recognise in terms of these elements of transferring power,

:57:14. > :57:19.there requires a comprehenshve solution to productivity in covering

:57:20. > :57:21.investment, infrastructure, internationalisation, innov`tion and

:57:22. > :57:27.the policies to deliver inclusive growth. They should recognise that

:57:28. > :57:31.the rebalancing of the economy needs a focus, not just on London versus

:57:32. > :57:36.the rest of the UK, but on the growth benefits from those firms and

:57:37. > :57:41.the whole economy which export and innovate and support more of them to

:57:42. > :57:48.do so. And that that focus should be heavily weighted to manufacturing,

:57:49. > :57:55.because the falling R, exports and output from that sector cannot be

:57:56. > :57:59.allowed to continue. Above `ll, while we believe in a setting

:58:00. > :58:02.ambitious targets, setting unrealistic and unachievabld export

:58:03. > :58:06.targets which fly in the face of reality will simply weakened this

:58:07. > :58:11.government's credibility in exactly the same way that failing to meet

:58:12. > :58:17.the debt deficit and borrowhng targets did in the last Parliament.

:58:18. > :58:21.To set a target of doubling exports without the means being put in place

:58:22. > :58:29.to deliver that is bad economics and bad politics. I will turn briefly

:58:30. > :58:33.to... I will not give way. To what the government have actuallx said in

:58:34. > :58:38.this Parliament. The published in July fixing the foundations, a

:58:39. > :58:43.document is supposed to covdr many of the areas which were discussing

:58:44. > :58:51.today. It is very thin, Mad`m Deputy Speaker. Their approach to raising

:58:52. > :58:54.productivity is covered by two Dilip points, a paragraph and a lhttle

:58:55. > :59:00.chart. Their section on long-term investment merely confirms that

:59:01. > :59:07.long-term investment, going back as far as the 1960s, has bouncdd along

:59:08. > :59:12.the bottom of the OECD aver`ge, that is the 10th to 90th percenthle for

:59:13. > :59:18.those who care about these things, hit the average for one year around

:59:19. > :59:23.1990, and has actually falldn off the bottom of that for many years

:59:24. > :59:29.since. On investment it is primarily around transport. I welcome

:59:30. > :59:31.transport investment, I welcome capital investment and the hncrease

:59:32. > :59:36.in capital investment in thd summer Budget, but let us be under no

:59:37. > :59:39.illusions, that change only came about after the government were

:59:40. > :59:42.found out cutting capital spending for every single year of thd

:59:43. > :59:47.forecast period in the spring Budget. They have the audachty in

:59:48. > :59:54.the Fixing the Foundations report to talk about reliable low carbon

:59:55. > :59:57.energy at a price we can afford while systematically undermhning the

:59:58. > :00:04.sector and the green investlent bank itself. On innovation and industry,

:00:05. > :00:10.which is at the heart of thd solution to a long-term problem we

:00:11. > :00:16.have three small paragraphs. What this document does, however, I am

:00:17. > :00:28.sorry if the Minister is slhghtly bored hearing about our govdrnment's

:00:29. > :00:33.failings, it mentions the trillion of exports by 2020. It shows are

:00:34. > :00:40.moderates rise in exports to the rest of the world and the

:00:41. > :00:44.catastrophic decline... The Minister is shaking his head. The

:00:45. > :00:48.catastrophic decline in exports to the richest OECD countries,

:00:49. > :00:51.published by the government in this Parliament. A sense of realhty is

:00:52. > :00:58.probably a rather good starting point for debate. Madam Deptty

:00:59. > :01:03.Speaker, each of the areas we have started to discuss today cotld form

:01:04. > :01:08.a debate in their own right. We believe this motion is a st`rting

:01:09. > :01:16.point to properly begin to understand and address UK Government

:01:17. > :01:18.policy weakness in the area is - areas of trade, exports,

:01:19. > :01:21.productivity and innovation and the fundamental rebalancing of the

:01:22. > :01:23.economy and I commend the motion to the house.

:01:24. > :01:28.As many as are of the opinion, say "aye". To the contrary,

:01:29. > :01:33.-- the question is as on thd order paper. Minister.

:01:34. > :01:36.I am very grateful to have the opportunity to come and deb`te and

:01:37. > :01:43.number of the government's key economic priorities here today. Can

:01:44. > :01:48.I begin by singing fulsome praise of my Cabinet colleague the Secretary

:01:49. > :01:53.of State for Scotland? Not only is he outstanding as Secretary of State

:01:54. > :02:00.for Scotland, but today he lade a very important announcement about

:02:01. > :02:04.what in many ways it should be said should be his private life but it is

:02:05. > :02:10.not it is in the public dom`in. It took huge coverage and I can say

:02:11. > :02:13.that I am hugely proud to sht in the cabinet with him, and I can see all

:02:14. > :02:18.of the nods on both sides, `ll around this chamber, in support of

:02:19. > :02:22.our Secretary of State at what may be a difficult time for manx. I am

:02:23. > :02:27.sure for him it is a very h`ppy day that finally he can be the person,

:02:28. > :02:31.the man he has always been `nd the tensing out and be proud of being

:02:32. > :02:35.that man. I want to pay tribute to him and I am pleased we all agree.

:02:36. > :02:40.Madam Deputy is bigger, it hs absolutely right that the Sox as

:02:41. > :02:44.micro-Scottish Secretary's Cabinet colleague announces this in the

:02:45. > :02:47.chamber. I think that is appropriate. I think on our side we

:02:48. > :02:52.would like to welcome what was said. However, in terms of the debate and

:02:53. > :02:56.we still say, notwithstanding that we hope he is happy, we

:02:57. > :02:59.fundamentally disagree with his politics.

:03:00. > :03:02.I took that as a red, actually, and I put on record that I know the

:03:03. > :03:07.First Minister for Scotland has also tweeted her support. Franklx I am

:03:08. > :03:12.not surprised. In this day `nd age I think most people shrug thehr

:03:13. > :03:16.shoulders and say, yes, whatever, I bothered? Of course we are not. But

:03:17. > :03:20.we can celebrate what should be a happy day for him. Anyway, let's get

:03:21. > :03:24.on to this debate will stop the motion before us refers to the

:03:25. > :03:29.United Kingdom economy, economic growth and I wish, if I may, to take

:03:30. > :03:34.a very quick trip down memory lane to set this debate in some context,

:03:35. > :03:38.because it is important. Thd honourable gentleman, the mdmber for

:03:39. > :03:41.Dundee East, has talked abott this government's record. I wantdd to

:03:42. > :03:45.talk about the last six or seven months and the previous fivd years,

:03:46. > :03:51.notably to remind everyone of the situation that we faced out in May

:03:52. > :03:57.2010, because at that time ht is important to remind everybody we

:03:58. > :04:03.were in the worst recession our nation had faced for 100 ye`rs. The

:04:04. > :04:09.biggest Budget deficit in otr peacetime history, over 500,000 more

:04:10. > :04:13.people on the dole, and that was a situation that we on this shde of

:04:14. > :04:17.the house, frankly, were left to pick up. An economy brought to its

:04:18. > :04:23.knees, almost on the brink of bankruptcy from lands end rhght the

:04:24. > :04:30.way up to John O'Groats, from London to Inverness, all across our nation

:04:31. > :04:36.we saw a country that was on its knees. To save us from that economic

:04:37. > :04:39.mire, we had to take some dhfficult decisions to control spending,

:04:40. > :04:45.reduce the deficit, to rescte our economy. Those decisions, every

:04:46. > :04:51.single one of them, were opposed by parties sitting opposite notably the

:04:52. > :04:56.opposition and indeed the Scottish National Party. Each and evdry

:04:57. > :05:02.decision was opposed, and how wrong they were. But it is thanks to the

:05:03. > :05:07.hard work of the British people that are economic plan has worked and it

:05:08. > :05:14.continues to work. The deficit is down by more than half, there are

:05:15. > :05:20.over 2.2 million more peopld now in work, and there are over 900,00

:05:21. > :05:25.more businesses. The United Kingdom has been the fastest-growing economy

:05:26. > :05:34.in the advanced world and that is a record that I and other members on

:05:35. > :05:38.this side of the house are proud of. In Scotland -- Scotland has been

:05:39. > :05:40.part of that success story. It is unfortunate that the honour`ble

:05:41. > :05:45.gentleman who represents Dundee East has just given us this long speech

:05:46. > :05:50.about all of the doom and gloom and all of the stuff trotting ott this,

:05:51. > :05:55.that and the other, talking down our economy, talking only Scotthsh

:05:56. > :05:59.economy which is part of thd United Kingdom. That is wrong, and that is

:06:00. > :06:07.sad, because there is a success story. I will give way. Isn't it

:06:08. > :06:10.also interesting that in ovdr half an hour the SNP sports person

:06:11. > :06:14.talking about trade, export, innovation and productivity

:06:15. > :06:20.mentioned not once free markets Not once entrepreneurship? Not once

:06:21. > :06:24.the power of the regulation Gretchen mac isn't it this government does

:06:25. > :06:27.make a priority to focus on those issues to achieve the goals were set

:06:28. > :06:33.in? I could not agree with him more. I did notice there was a lot of

:06:34. > :06:37.moaning and containing but there were no solutions, ideas of fresh

:06:38. > :06:42.ways of thinking. Not one it was all doom and gloom and talking down our

:06:43. > :06:47.economy. I thank the Ministdr. In her history lesson about thd

:06:48. > :06:53.long-term economic plan, whhch plan is she referring to? The ond from

:06:54. > :06:56.the first two years, when the Chancellor was desperately trying to

:06:57. > :07:01.reduce public spending? On the one that followed the first two years

:07:02. > :07:03.when he listened to this side of the house and actually loosened up on

:07:04. > :07:08.public spending with the result of the economy then starting to grow?

:07:09. > :07:11.I am sorry the honourable gdntleman did not hear it. I am referring to

:07:12. > :07:17.the long-term economic plan that delivered a deficit down by more

:07:18. > :07:21.than half, 2.2 million more people in work, 900,000 more busindsses and

:07:22. > :07:24.our long-term economic plan that made of this country the

:07:25. > :07:29.fastest-growing economy in the advanced world. That is what I am

:07:30. > :07:35.referring to and I do so with pride. Scotland has been part of that

:07:36. > :07:41.success story. Since 2010, 070 000 people are worked in Scotland more.

:07:42. > :07:46.-- 178,000 more people in Scotland are at work. This has been `

:07:47. > :07:51.recovery based on private sdctor growth and employment and lhving

:07:52. > :07:55.within our means. Of the Scottish National Party 's and the L`bour

:07:56. > :08:00.Party are wedded to abandonhng fiscal responsibility and pttting

:08:01. > :08:04.our economic security at risk. On the side of the house we know the

:08:05. > :08:08.job is not done. We know we have do oppose those opposite who would

:08:09. > :08:13.return to the bad old ways `nd days of spending beyond our means. We

:08:14. > :08:16.know that to lock in our future economic security and prospdrity we

:08:17. > :08:21.need our businesses to incrdase exports, boost productivity and

:08:22. > :08:26.continue to innovate to stax ahead. We believe in cutting red t`pe, as

:08:27. > :08:30.the honourable gentleman my friend for Bedford has told us. We believe

:08:31. > :08:34.in all of those good strong parts of our free economy which does not

:08:35. > :08:38.believe in overregulating pdople that allows businesses to gdt on and

:08:39. > :08:42.do business, the thing that they know best. That does not me`n to say

:08:43. > :08:49.I am some ideologue, that is wedded to some free market without any

:08:50. > :08:52.constraint at all. Of coursd not. I am a caring, compassionate

:08:53. > :08:55.conservative. I don't believe in monopolies, I believe in

:08:56. > :08:58.responsibility and all of those that do business, and that is whx I am so

:08:59. > :09:02.proud that it is this government ringing forward the living wage the

:09:03. > :09:09.way that we have done. This is a true benefit to workers across our

:09:10. > :09:16.country, especially the lowdst paid. I am tired of that. I will give way.

:09:17. > :09:19.-- I am proud of that. But she also agree that on the side

:09:20. > :09:24.of the house we are equally committed to encouraging those first

:09:25. > :09:29.time entrepreneurs, first-thme employers and exporters to be able

:09:30. > :09:36.to do those things perhaps their parents had them done beford? We are

:09:37. > :09:39.also encouraging social mobhlity. Absolutely. Of course small

:09:40. > :09:43.businesses and new businessds, start-ups and as a scalar, `nd the

:09:44. > :09:47.heart of everything we seem to achieve because we understand the

:09:48. > :09:50.value. It takes great courage. Start their own business. We do what began

:09:51. > :09:56.to start-up loans to assist them and we now have at a local level by

:09:57. > :10:00.devolving through with the business growth pubs and the other mdasures

:10:01. > :10:03.were put in place rice ten `t a local level to make sure th`t people

:10:04. > :10:06.are in a position whereby there is help, assistance and advice to them

:10:07. > :10:15.as they start-up their business and begin to grow. We've made stre in

:10:16. > :10:18.particular we may do the right thing by decreasing the regulatorx burden

:10:19. > :10:21.that we've achieved a lot in the last five years and we have more to

:10:22. > :10:26.achieve. It will be tough btt we are determined to do that. Therd is

:10:27. > :10:32.another important point you make, it is often starting up your own

:10:33. > :10:36.business that is a great wax for somebody absolutely to shakd off

:10:37. > :10:40.their past, some of the things in their background they have held or

:10:41. > :10:45.are in danger of folding thdm back and to advance in the way that we

:10:46. > :10:49.want people to do. That is what brought people like me into

:10:50. > :10:52.politics. A desire to make the lives of everybody, especially those from

:10:53. > :10:58.the less advantaged families and backgrounds, make their livds

:10:59. > :11:03.batter. -- better. I believd these economic policy we have we will

:11:04. > :11:07.continue and achieve exactlx that. I had and eight BG speaker, character

:11:08. > :11:10.and to treat. I was going to give lady at -- give way over thdre.

:11:11. > :11:15.Thank you. I'm glad she had not forgotten about me. She agrde there

:11:16. > :11:20.is no comfort for workers under the age of 25 in this new minimtm wage

:11:21. > :11:25.because they will not qualify for? They will languish in wages of about

:11:26. > :11:29.?3 87 per hour, which is not good enough? Can I just say I thhnk it's

:11:30. > :11:32.very interesting the number of companies who are into juichng the

:11:33. > :11:38.new living wage irrespectivd of the age of their employees? -- hnto

:11:39. > :11:41.juicing that I welcome that, but every good thing we do, we have to

:11:42. > :11:45.have someone who comes along and Knox is and always want somdthing

:11:46. > :11:50.more. There is nothing wrong with wanting more, but give credht where

:11:51. > :11:53.credit is due. This is a huge achievement that I'm proud `s a

:11:54. > :11:59.Conservative Party to do it. I have to say, I got to say this, H really

:12:00. > :12:05.do struggle with having lessons on the economy from the Scottish

:12:06. > :12:07.National Party. This is a p`rty that built its entire idea of

:12:08. > :12:11.independence, which mercifully the good people of Scotland rejdcted, on

:12:12. > :12:19.the fact they thought that oil was going to be the foundation of their

:12:20. > :12:25.independent economy. Goodness me, we're now in a position where oil is

:12:26. > :12:28.$35 a barrel and its acceptdd that the cost, if they had been

:12:29. > :12:33.successful, would have been somewhere in the region of ?5,0 0 to

:12:34. > :12:39.every single household. Scotland would have been in the most

:12:40. > :12:43.atrocious economic place if it had voted for independence. As H say,

:12:44. > :12:47.thank goodness the good people of Scotland to the wise decision that

:12:48. > :12:50.we were undoubtedly better together. It is really difficult for le to

:12:51. > :12:56.take lessons from this ragt`g and bobtail of the SNP that encompasses

:12:57. > :13:03.everything from Tartan Torids, right across Tartan trots. It really will

:13:04. > :13:07.be very interesting as the Smith report, and I will give way in a

:13:08. > :13:12.moment. I'm on a roll. And he's got the bill comes into power, they will

:13:13. > :13:16.finally have the powers thex seek, the most devolved Government, in a

:13:17. > :13:19.moment, the most of devolved Government in the world and then

:13:20. > :13:22.they will have responsibility and then we will see whether thdy will

:13:23. > :13:29.be able to deliver. I would bet good money they will not be able to. The

:13:30. > :13:35.lady first, then the gentlelan. I'm grateful to the Minister for giving

:13:36. > :13:39.way. Very interesting speech she is making. I must challenge her on the

:13:40. > :13:48.point she has made about thhs flailing economy. The Government was

:13:49. > :13:55.meant to have eradicated thd debt by 2015. They have only half d`te and

:13:56. > :13:58.you borrowed 73 and a half billion pounds this year. You were leant to

:13:59. > :14:05.have eradicated it. You're obviously playing a positive spin on this

:14:06. > :14:10.economic plan. Let's see how long it lasts. I think the Government have

:14:11. > :14:14.been giving warning signs that may not last. Can I ask, based on what

:14:15. > :14:20.the honourable gentleman was saying, the IMF has said if you mess war in

:14:21. > :14:24.the 20% on the lowest incomds you will buy -- boost economic growth. A

:14:25. > :14:27.much interest. Something thd Government has failed to default on

:14:28. > :14:31.why have you not done this? Can I say to be honourable lady fhrst the

:14:32. > :14:35.IMF has been awesome in its praise of our economic plan and its

:14:36. > :14:38.successors, really, much as I may like the honourable lady on a

:14:39. > :14:42.personal level, I'm going to struggle to take lessons. The last

:14:43. > :14:47.Labour Government doubled ddbt and we have only half the deficht. I'm

:14:48. > :14:53.proud of all the huffing it but you can see in her words, we sed the

:14:54. > :14:59.absolute, the poor old Labotr Party and learn from the mistakes of the

:15:00. > :15:03.past. Under its currently to ship, goodness knows the route it is now

:15:04. > :15:08.embarking upon the middle is set in opposition for a long time. Can she

:15:09. > :15:16.answer one question, has debt under this Government? Debt has gone up.

:15:17. > :15:21.That is all right. It's not about scoring cheap political points, as

:15:22. > :15:24.the honourable gentleman knows. Obviously I would never eng`ge in

:15:25. > :15:32.such work. The honourable gdntleman cannot deny 2 million more people in

:15:33. > :15:35.work, this is part of the proud record and he should be prahsing

:15:36. > :15:40.that. The Labour Party would do well, actually, when we do the right

:15:41. > :15:44.thing, over 2 million more people in work, why cannot give the honourable

:15:45. > :15:49.gentleman give praise where praise should be given? Yes. It allost took

:15:50. > :15:54.the Minister 12 minutes to revert to type. Ragtag and bobtail if she

:15:55. > :16:00.likes, that is nothing comp`red to the way the Scottish people describe

:16:01. > :16:04.her party. If we can clear tp one little fact on the oil pricd, I

:16:05. > :16:11.thought the Minister might raise it, yes we did say it would be $110 a

:16:12. > :16:16.barrel, that is correct, can we be absolutely clear that the UK

:16:17. > :16:20.Government's on Department for energy and climate change at the

:16:21. > :16:25.barrel price at between 114 and a a barrel and that at the very least

:16:26. > :16:32.admits the UK Government got it wrong. The point is the honourable

:16:33. > :16:39.gentleman and his party werd basing the whole of Scotland's economic

:16:40. > :16:43.future on oil. How mad was that I will make some progress. Hang on. I

:16:44. > :16:46.will give way in a moment. H want to do this piece on trade in exports

:16:47. > :16:49.because I think it's really important in considering tr`de and

:16:50. > :16:55.export otherwise I will be speaking for far too long and mad Dave Gisby

:16:56. > :16:58.can will monitor me. We also recall the importance of the best kingdom's

:16:59. > :17:07.largest domestic market and the benefits it brings. The rest of the

:17:08. > :17:10.UK is going to beat Scotland's best economic partner. 73% of Scots

:17:11. > :17:14.exports go to the rest of Uganda biggest threat is the party opposite

:17:15. > :17:21.that would put barriers between Scotland and the rest of thd UK

:17:22. > :17:23.Trading experts are a key element of June to go view the buzz on the

:17:24. > :17:29.economy and White discovered is committed to heat easier for copies

:17:30. > :17:34.to export. We provide wanting to export to the UK and we want to work

:17:35. > :17:39.with other governments to rdduce barriers to trade. Our tradd net --

:17:40. > :17:42.deficit narrowed by 0.3 billion in the last three months to November

:17:43. > :17:47.and the number of copies exporting in both the UK and Scotland is up

:17:48. > :17:53.since 2010. Of course, we know we have a lot further to go. Ddlivering

:17:54. > :17:57.on all of the EU's trade negotiations could add ?20 billion

:17:58. > :18:03.to the UK economically each year. We know that trade agreements work In

:18:04. > :18:07.the four years since the EU career arrangement agreement came hnto

:18:08. > :18:11.force, the value of UK exports has more than doubled. We have seen a

:18:12. > :18:17.1000% increase in the value of jet engine sales. The UK sold jtst 215

:18:18. > :18:24.cars to Korea in the final xear before the FTA was agreed. Last year

:18:25. > :18:27.the number reached 13300 and 37 It is not just the big companids that

:18:28. > :18:32.benefit. There is a Scottish business that was able to sdll

:18:33. > :18:37.100,000 jars of jam in Kore` last year after the FTA slashed hmport

:18:38. > :18:41.duties and that is why this Government is committed to

:18:42. > :18:45.delivering freer global trade concluding major trade deals with

:18:46. > :18:57.the US, Japan and many other trading partners and that, of coursd, will

:18:58. > :19:00.bring me to tTip. In the last session I was responding to the

:19:01. > :19:05.debate on teeter and I will not repeat all of the things I said in

:19:06. > :19:10.that debate. But it really hs disingenuous of the party opposite

:19:11. > :19:17.in this direction, and indedd in that direction as well, to oppose

:19:18. > :19:20.TTIP on the three false prelise it would threaten our public sdrvices

:19:21. > :19:27.and in particular the NHS. Ht is not true. As a deputy Speaker, there are

:19:28. > :19:32.so many letters by way of example, the letter which one of the

:19:33. > :19:36.honourable members in that debate will remember the letter wrhtten in

:19:37. > :19:40.December 14 from the users of agree to be chair of the health sdlect

:19:41. > :19:45.committee who ask specific puestions about whether TTIP undermindd or

:19:46. > :19:50.posed any threat to our NHS and the answer was overwhelmingly come every

:19:51. > :19:57.time, no. Everybody that cotld have said there is no threat frol TTIP to

:19:58. > :20:03.any of our public services, especially and in particular the

:20:04. > :20:07.NHS, that, people said over`ll turnover is much over and over again

:20:08. > :20:11.and it's grossly unfortunatd the members opposite and parties op

:20:12. > :20:16.Cit. Peddle these untruths `bout TTIP. It is simply not right and

:20:17. > :20:21.fair to mislead people as they are. I will give way. I'm grateftl to the

:20:22. > :20:25.Minister. There seems to be some ambiguity around this. At ldast

:20:26. > :20:31.let's committee we have different evidence on that same compldtely the

:20:32. > :20:34.opposite, in view of the ambiguity, why doesn't she really issud as

:20:35. > :20:40.complete and save the NHS whll be exempt from TTIP in negotiations? I

:20:41. > :20:43.don't know how many times I will send all of the information to the

:20:44. > :20:48.honourable lady that will s`y all of these things and make it absolutely

:20:49. > :20:52.clear that TTIP is not a threat to our public services and is not a

:20:53. > :20:59.threat to our NHS. On the contrary, it will deliver billions of pounds

:21:00. > :21:03.of wealth to our economy because it will free up trade between ourselves

:21:04. > :21:07.and the USA. I think honour`ble members opposite have got to be

:21:08. > :21:14.honest about it. I think thd real problem is they are pages against

:21:15. > :21:20.the USA. -- is their prejudhce. Be honest because they are putting up

:21:21. > :21:23.bogeys that do not exist. I thank the Minister forgiving way. If I

:21:24. > :21:28.might return to the oil price and the sheer joy expressed by lembers

:21:29. > :21:32.in this chamber at the coll`pse in the oil price, I look at thd man

:21:33. > :21:40.sitting directly behind the Minister for the joy and delight on his face.

:21:41. > :21:42.In the real world come in the consistency I represent, jobs are

:21:43. > :21:46.being lost. The Minister has expressed her delight at thd fact

:21:47. > :21:51.that Scotland's state in thd union, can she explained that the tnion is

:21:52. > :21:56.doing dealt Scotland in his moment of need? Is not for me to speak of

:21:57. > :22:00.others but I can assure you there was no joy at the falling ohl price

:22:01. > :22:04.on this site. The joy, I wotld like to think, was in the point that I

:22:05. > :22:06.made and made it rather well, to say that the honourable gentlem`n is in

:22:07. > :22:09.the point that I made and m`de it rather well, to say that thd

:22:10. > :22:12.honourable gentleman is a p`rty that all its faith in the oil prhce as

:22:13. > :22:17.this are they shot their economy and they were absolutely wrong. I don't

:22:18. > :22:23.know the constituency, forghve me, I suspect it is in the north-dast of

:22:24. > :22:28.Scotland? He makes a good point and this is the only good point. He

:22:29. > :22:31.makes a good point about thd concerns we have both the ftture of

:22:32. > :22:37.the oil and gas industry, btt the oil industry in particular hn the

:22:38. > :22:40.North is of Scotland. Unaware of the redundancies announced yestdrday by

:22:41. > :22:44.BP and I would agree, there is much we can do. Note the week. It would

:22:45. > :22:46.be good for the British Govdrnment to work with the Scottish Government

:22:47. > :22:56.to make sure that we do all we can. We have a fantastic oil indtstry

:22:57. > :23:00.based in Aberdeen largely, one of the finest in the world, and there

:23:01. > :23:05.is much we can do working together to make sure we don't see ftrther

:23:06. > :23:11.job losses, especially how we have seen. It is helpful what shd has

:23:12. > :23:16.just said but she has twice now made the incorrect and false assdrtion

:23:17. > :23:21.that we base any forecast only on oil, that was never true. The

:23:22. > :23:24.Minister has accused others of misleading the public over the

:23:25. > :23:31.approach to TTIP. I hope shd doesn't want to mislead the public over a

:23:32. > :23:41.recession on the economy behng based solely on one industry. I whll give

:23:42. > :23:51.away. It is a fair challengd to remind the government how ilportant

:23:52. > :23:57.the oral industry is to our country. -- the oil industry. I am stre the

:23:58. > :24:03.Minister hopes that the benches opposite will support that. I can't

:24:04. > :24:07.add anything to that, except to say it was an extremely good pohnt well

:24:08. > :24:10.made. Madam Deputy Speaker, can I move onto productivity, which is

:24:11. > :24:16.obviously incredibly import`nt. Delivering a return to it is one of

:24:17. > :24:19.the key economic challenges to this parliament, and a route to lay -

:24:20. > :24:22.raising living standards for everyone in the UK. We have lacked

:24:23. > :24:29.behind other major economies, let's be honest, for decades. Productivity

:24:30. > :24:33.in Scotland is still 2.5% bdlow the United Kingdom average. It hs why we

:24:34. > :24:36.are determined to fix it, and so I won't pretend there are any

:24:37. > :24:40.short-term measures, this whll take some time and it will take ` lot of

:24:41. > :24:44.hard work. But in the summer budget last year, the Chancellor sdt out

:24:45. > :24:47.the government's ambitious plan fixing the foundations and creating

:24:48. > :24:51.a more prosperous nation, and it ensures we are doing everything

:24:52. > :24:55.possible to deliver higher levels of productivity in the UK. Skills and

:24:56. > :25:00.education are key to improvhng productivity, and we have invested

:25:01. > :25:05.in skills, delivering 2 million apprenticeships in the last

:25:06. > :25:10.Parliament, and our reforms in education are already raising

:25:11. > :25:13.standards. Unfortunately, under the SNP, standards of numeracy `nd

:25:14. > :25:19.literacy in Scotland have bden falling, and fewer Scotland's more

:25:20. > :25:24.deprived children attend a university than in any other part of

:25:25. > :25:29.the United Kingdom. Just 10.3% of the poorest 20% of Scots attend

:25:30. > :25:36.university, versus 18.1% in England, 16.3% in Wales and 16.3% in Northern

:25:37. > :25:44.Ireland. We have also protected science spending, ?4.7 billhon per

:25:45. > :25:48.year in resorts, and ?6.9 bhllion in infrastructure to 2021. And we

:25:49. > :25:51.continue to invest in our c`tapult centres. We are delivering one of

:25:52. > :25:57.the largest and most ambitious infrastructure programmes in recent

:25:58. > :26:00.Emery, with projects such as HS , which is something I absolutely have

:26:01. > :26:03.no doubt everybody should b`ck, it would bring huge benefit to our

:26:04. > :26:11.country, and if I just quickly say especially to my constituency as we

:26:12. > :26:15.hope to have the East Midlands hub in Totem, and of course Crossrail,

:26:16. > :26:19.which has been a huge project across the capital, and of course the

:26:20. > :26:23.largest investment as we sed it in our roads since the 1970s. So we are

:26:24. > :26:29.beginning to see signs of improvement. Output per hour group

:26:30. > :26:33.by 5% of the third quarter of 2 15 compared to the previous, and was

:26:34. > :26:42.1.3% higher than the same pdriod in 2014. UK productivity has exceeded

:26:43. > :26:46.its previous peak by 0.7%. Let me doing this and then I will give way

:26:47. > :26:49.to the Honourable lady, but she has had two minutes, I just want to make

:26:50. > :26:54.some progress. Alongside tr`de, innovation is another pillar on

:26:55. > :26:57.which our economy is built. It is also an important lever for

:26:58. > :27:01.increasing productivity. Thd excellent work of my colleague, the

:27:02. > :27:04.science minister, has ensurdd science spending is protectdd in

:27:05. > :27:12.real terms, with record levdls of investment across the UK. ?4.7

:27:13. > :27:15.billion per year, resource funding, rising with inflation, a record

:27:16. > :27:21.investment in our country's scientific infrastructure at ?6 9

:27:22. > :27:26.billion to 2021. And that the government will be protecting all of

:27:27. > :27:30.that in cash terms. Total spending on business led innovation through

:27:31. > :27:33.Innovate UK. We recognise access to finance remains an important

:27:34. > :27:37.challenge for innovative enterprises, which is why wd are

:27:38. > :27:40.committed to introducing new types of finance products to support

:27:41. > :27:50.companies to innovate. New products, such as loans, will replace some

:27:51. > :27:55.existing Innovate UK grants and will reach ?165 million by 2019. In 014

:27:56. > :27:59.alone, more than ?2 billion was raised in venture capital in the

:28:00. > :28:04.United Kingdom, that was up 50% from the previous year. I see no reason

:28:05. > :28:09.why the United Kingdom can't be the's number one destination for

:28:10. > :28:13.innovation and finance. I understand why the government may wish to

:28:14. > :28:17.change the way in which somd of the foreign deals are financed, but

:28:18. > :28:22.would she accept that given the long lead-in time from any development

:28:23. > :28:26.projects that loans are not appropriate and will even ldad to

:28:27. > :28:32.innovation and research going outside the United Kingdom, while

:28:33. > :28:36.stopping altogether? If if H may say, we are taking time to bring

:28:37. > :28:40.them in, and of course it is a mix, and in some instances it is

:28:41. > :28:44.absolutely the right thing to do. That is why in other instances it

:28:45. > :28:47.might be that we give a grant. I think the flexibility is thd right

:28:48. > :28:51.way to approach it, because it means we can put the money that wd need

:28:52. > :28:54.to, even in these difficult times, and I think we are doing at the

:28:55. > :29:02.right thing, yes of course H will give way. Thank you for givhng way.

:29:03. > :29:09.The report on productivity by the FSB identified late payments to

:29:10. > :29:18.small businesses as one of the important ones. Would you admit it

:29:19. > :29:22.is a key issue? I know therd is a good argument in favour, but we are

:29:23. > :29:24.having a consultation of it. As the honourable lady knows my door is

:29:25. > :29:28.open on this one, I am more than happy to have a discussion with her

:29:29. > :29:32.because I know there is a powerful argument in favour. Strong `rguments

:29:33. > :29:35.against it, but we are having a consultation, so maybe we could make

:29:36. > :29:40.some progress on that and in deed and must make some progress on my

:29:41. > :29:45.speech. But first I give wax to the honourable gentleman. Thank you Is

:29:46. > :29:52.the Minister aware that yesterday the medical research council issued

:29:53. > :29:56.that paper regarding the move from grants to loans, in which it said

:29:57. > :30:01.the biomedical catalyst may not continue? I am not going to pretend

:30:02. > :30:06.I haven't seen that paper, but I would think it is really important

:30:07. > :30:08.not to comment on things yot haven't read and don't comment on things

:30:09. > :30:16.that have been taken out of context. It maybe

:30:17. > :30:24.one of the changes the Treasury has made is to enable ISAs to bd used to

:30:25. > :30:33.enable peer-to-peer lending. Will the Minister have words with her

:30:34. > :30:41.colleagues to make equity p`yments to pervert companies. The answer is

:30:42. > :30:48.simply yes. This government continues to encourage business

:30:49. > :30:52.investment. Through tax incdntives. Take-up of the scheme continues to

:30:53. > :31:00.grow. We have 18,200 companhes claiming one point -- ?175 billion

:31:01. > :31:06.of relief from ?14.3 billion of innovative investment. In Scotland,

:31:07. > :31:12.there were 1045 claims giving a total relief of ?55 million. That

:31:13. > :31:17.means more investment in research and development, and more hhgh-value

:31:18. > :31:20.jobs and greater productivity. The government is also continuing to

:31:21. > :31:24.invest in our catapult network and the first seven catapults are now

:31:25. > :31:30.operating from the established facilities with total public and

:31:31. > :31:34.private investment exceeding ?1 6 billion over the first five years of

:31:35. > :31:38.operation, including offshore renewable energy in Glasgow, the

:31:39. > :31:42.advance forming research Centre in Strathclyde, part of the high value

:31:43. > :31:46.in manufacturing catapult. Because we are taking the difficult

:31:47. > :31:49.decisions to fix Britain's finances, we can afford to continue to invest

:31:50. > :31:53.in science and innovation from investing in Scotland's futtre,

:31:54. > :31:56.helping to ensure it punches above its weight. Of course that hs the

:31:57. > :32:01.point, if we have a good, solid Sound economy that is growing, then

:32:02. > :32:07.we are able to do this type of work, we are able to spend taxpaydr's

:32:08. > :32:10.money in this way to support our great British businesses, and in

:32:11. > :32:18.particular the ones that ard so innovative in their approach and in

:32:19. > :32:25.the work that they do. So, to conclude, trade, exports,

:32:26. > :32:28.innovation, logo one. Thank you Before the Minister concludds, can I

:32:29. > :32:35.ask her to address the issuds of the steel industry at the moment?

:32:36. > :32:37.Because during that summit hn October: UK steel has enterdd a very

:32:38. > :32:45.strong case for the urgent `ction the government needed to take, some

:32:46. > :32:50.that the government has influence it, but can I impress on thd

:32:51. > :32:56.Minister is is a difficult time for steel, yes, we have acted on energy

:32:57. > :33:00.costs, but what about on thd other issues raised? I think we are

:33:01. > :33:04.absolutely delivering, not just on energy costs, but how we ch`nge the

:33:05. > :33:07.procurement rules. I am hugdly proud of that. She knows we are absolutely

:33:08. > :33:11.determined to continue to ddliver then we can to keep what thd Prime

:33:12. > :33:15.Minister has called a vital industry in production. We don't want to see

:33:16. > :33:17.the blast furnaces closing `t Port Talbot any more than to see them

:33:18. > :33:32.closing at Scunthorpe. If wd could have done anything, I see the Right

:33:33. > :33:38.honourable lady from Runcorn, we import -- recognise the importance.

:33:39. > :33:47.The same is true at Keele and flybridge. It is very important I

:33:48. > :33:51.have been pleased to work whth the Deputy first versed in trying to

:33:52. > :33:57.make sure we do all we can to keep those to plants open in Scotland.

:33:58. > :33:59.So, Madam Deputy Speaker, trade exports, innovation and

:34:00. > :34:04.productivity, all vital exponents and that is why the governmdnt has

:34:05. > :34:07.developed a clear plan of action and why Scotland and indeed all parts of

:34:08. > :34:11.the United Kingdom benefit from our continued commitment to these key

:34:12. > :34:15.priorities. Scotland has bedn part of the economic and job success

:34:16. > :34:19.story of the last six years, and our economic plan for the whole of the

:34:20. > :34:22.United Kingdom continues to deliver economic security and prospdrity for

:34:23. > :34:27.all of our people. The biggdst threat to businesses, growth and

:34:28. > :34:30.jobs and indeed productivitx and innovation for the Scottish people

:34:31. > :34:35.would see Scotland isolated and cut off from the United Kingdom, led by

:34:36. > :34:38.a party who want to return to the failed policy of more spendhng, more

:34:39. > :34:43.borrowing, that led us into the economic oblivion last time. The

:34:44. > :34:46.let's stick to the plan that has rescued our economy from thd brink,

:34:47. > :34:51.turned it into the fastest-growing economy in the advanced world and is

:34:52. > :34:54.now tackling head-on for thd long-term structural issues to

:34:55. > :34:58.insure not just for our children but notably for our grandchildrdn and

:34:59. > :35:09.that is why I will not be stpporting this motion and I ask the honourable

:35:10. > :35:13.members not to support eithdr. Can I start by giving apologies from the

:35:14. > :35:17.Shadow Business Secretary, who is in Brussels today meeting the Durope

:35:18. > :35:20.the commission and members of the European Parliament to disctss in

:35:21. > :35:27.fact many of the issues that form part of this debate today. But I

:35:28. > :35:30.want to turn my opening rem`rks to respond to some of the things the

:35:31. > :35:38.Minister has said. She indulged in something of a history lesson, but

:35:39. > :35:46.what happened in 2010. I relember well making the case that in 20 0 we

:35:47. > :35:52.faced half the level of bushness failures compared to the parable

:35:53. > :35:57.Tory sessions of the 80s and 90s. It was a record where the Labotr

:35:58. > :36:03.government had protected jobs, businesses and people's homds. The

:36:04. > :36:11.economy was recovering in M`y 2 10 when the coalition took offhce. That

:36:12. > :36:17.recovery was choked off by the Chancellor, when he came in with the

:36:18. > :36:22.emergency budget of June. And I m afraid that ever since, as we have

:36:23. > :36:27.heard from members already, the recovery which has been the slowest

:36:28. > :36:32.on record, and we see that hn the figures that have been disctssed

:36:33. > :36:39.already, is the true record of this government, when it comes to the

:36:40. > :36:41.economy, and they blew the growth that was steadily happening away

:36:42. > :36:46.when they came into power as part of a coalition. I will give wax. Very

:36:47. > :36:52.grateful. The honourable gentleman make some quite bold statemdnts but

:36:53. > :36:55.how do they tally with the fact that Britain today, now, is the

:36:56. > :37:03.fastest-growing country? How does that square with what he has said?

:37:04. > :37:09.After the slowest recovery on record, growth at some point will be

:37:10. > :37:20.the fastest in the world, isn't it? So it comes as no surprise. But the

:37:21. > :37:26.reality is, the government has failed, I'm not going to give way to

:37:27. > :37:31.make times. The government has failed in its own terms to dradicate

:37:32. > :37:36.the deficit. It was the Chancellor's promised that it would be gone by

:37:37. > :37:40.last year, and the government in fact has borrowed more in fhve and a

:37:41. > :37:44.bit years, it had borrowed lore than the election than Labour did in 13

:37:45. > :37:49.years in government, so on hts own terms it has failed. I just want to

:37:50. > :37:54.pick up the point she made `bout TTIP as well. If she wants lembers

:37:55. > :37:59.on the side, from whichever party, if she wants members of the public

:38:00. > :38:02.to be reassured about her, that she is not just giving warm words on

:38:03. > :38:06.TTIP, she could exempt it, `nd we would be sorted. She could dxempt it

:38:07. > :38:18.from public services. With the shadow minister acknowledge

:38:19. > :38:22.that the UK belongs to 110 other bilateral investment treatids with

:38:23. > :38:26.other countries around the world, none of which exclude public

:38:27. > :38:30.services and all of which h`ve the best state dispute settlement

:38:31. > :38:34.mechanism within them -- and do not believe it is the policy of either

:38:35. > :38:38.the Labour Party or SNP for Britain to withdraw from any of those

:38:39. > :38:43.important financial investmdnt treaties. And as I said, thd

:38:44. > :38:47.minister and the Government could relieve the concerns of manx people

:38:48. > :38:52.in this country, not just in this chamber, by committing to exempt

:38:53. > :38:58.from public services will stop Madam Deputy Speaker. When it comds to

:38:59. > :39:01.boosting productivity and otr economy, the ambitions of workers

:39:02. > :39:05.and businesses are not at odds with each other. Workers do well when

:39:06. > :39:09.they're successful businessds to give them secure implement.

:39:10. > :39:12.Businesses do well when thex can draw and a skilled workforcd and

:39:13. > :39:16.when they are selling products and services in a high wage economy We

:39:17. > :39:20.have many fine businesses m`king some of the best products in the

:39:21. > :39:24.world, delivering some of bdst services and developing manx of the

:39:25. > :39:26.best new ideas. Those successful businesses have highly commhtted and

:39:27. > :39:34.skilled workers competing whth the very best. But too many of our .2

:39:35. > :39:36.million businesses face headwinds which make this is much mord

:39:37. > :39:44.difficult than it should be and often lead to closure and job losses

:39:45. > :39:50.which are entirely avoidabld. We can learn from the success that in exist

:39:51. > :39:53.in this country in science `nd engineering, in universities, and we

:39:54. > :39:58.can learn from other countrhes as well. Success leaves clues. And in

:39:59. > :40:02.those countries that are outperforming us, one strikhng

:40:03. > :40:05.reason is the relationship between Government, businesses and

:40:06. > :40:10.workforce, because what oftdn works in successful countries and

:40:11. > :40:14.companies is a 3-way partnership for growth and productivity. Secure

:40:15. > :40:16.skilled, well-paid workers. Businesses working with the

:40:17. > :40:20.infrastructure and workforcd they need to expand, and a Government

:40:21. > :40:24.that builds the stable foundations on which the partnership between

:40:25. > :40:29.businesses and workers can grow The Business Secretary is unwilling to

:40:30. > :40:36.even uttered the words industrial strategy. But that is what hs

:40:37. > :40:39.needed. Industrial strategy is nothing more than Government's

:40:40. > :40:46.willingness to enter a partnership with business and workers. To match

:40:47. > :40:49.their ambitions by looking beyond elections cycles and investhng in

:40:50. > :40:53.the infrastructure and training they need to flourish. Businesses are

:40:54. > :40:58.clear on what they need frol Government. They want the Government

:40:59. > :41:02.to take a long-term approach to capitalising on new technology. To

:41:03. > :41:06.nurture sectors that will boost exports, to create jobs and generate

:41:07. > :41:09.sustainable growth. From Grden and renewable energy to high end

:41:10. > :41:15.manufacturing and digital technology, the UK is not short of

:41:16. > :41:19.opportunities, of innovativd entrepreneurs that want to put the

:41:20. > :41:22.UK at the global forefront of these emerging sectors, but under this

:41:23. > :41:27.Government, the UK spends ldss on research as a share of GDP than

:41:28. > :41:35.France, Germany, the US and China. It has embarked on real terl cuts to

:41:36. > :41:37.the UK business growth servhce including the manufacturing advisory

:41:38. > :41:45.service and the growth accelerator programme. It is astonishing to

:41:46. > :41:48.change innovation... These `re not the actions of a Government

:41:49. > :41:51.committed to playing its part in creating opportunities for the next

:41:52. > :41:57.generation of entrepreneurs. The growth accelerator programmd alone,

:41:58. > :42:02.it assisted more than 18,000 businesses. The ?100 million to

:42:03. > :42:07.finance the accelerator programme went into developing innovative new

:42:08. > :42:12.products and services, which create jobs and boost productivity. If the

:42:13. > :42:15.Government wanted a partnership of business, it would not have

:42:16. > :42:18.completely shutdown long-term dividends to the economy. These

:42:19. > :42:27.schemes are already beginning to deliver. Scraping short-terl cuts

:42:28. > :42:31.together for the Chancellor... The decision to axe these schemds is not

:42:32. > :42:35.just a knee jerk reaction to departmental cuts. It speaks volumes

:42:36. > :42:40.about the Government's real lack of long-term vision and commitlent to

:42:41. > :42:44.businesses. Productivity cannot improve and sustainable growth

:42:45. > :42:47.cannot be secured as long as this Government's message to

:42:48. > :42:51.entrepreneurs and innovators is you're on your own. Businesses want

:42:52. > :42:56.a trained workforce and a steady supply of skills to expand their

:42:57. > :43:00.operations. In a business strvey by the DEF, the manufacturers'

:43:01. > :43:04.organisation, half of manuf`cturers pointed to a skilled workforce as

:43:05. > :43:10.the single most important f`ctor in Bru boosting growth and

:43:11. > :43:14.productivity. Manpower Group Uk say that 30% of the largest instruction

:43:15. > :43:18.companies -- construction companies have had to turn down work due to a

:43:19. > :43:21.lack of skilled Labour. For all be Chancellor's talk of skills, more

:43:22. > :43:27.than two thirds of businessds say they are in bad need of mord skilled

:43:28. > :43:33.staff. The engines of growth in the UK, manufacturing and technology,

:43:34. > :43:37.all face growing skills shortages. Once again, there is a gulf between

:43:38. > :43:42.the Government's rhetoric and action. Their ?360 million hn cuts

:43:43. > :43:48.from the adult skills but it will dampen the ambitions of people

:43:49. > :43:53.hoping to learn the skills they need to enter the workforce and take

:43:54. > :43:58.skilled jobs. -- budget. Whhlst we on this side agree with the

:43:59. > :44:02.principle of an apprenticeship levy, we will be carefully examinhng the

:44:03. > :44:07.details. It is vital that the policies used to drive up the

:44:08. > :44:11.quality as well as the quantity of apprentices. It is important that it

:44:12. > :44:15.meets the ambitions of learners as well as the needs of employdrs, and

:44:16. > :44:24.it's also important that dods not become, as Seamus Nevin of the eye

:44:25. > :44:29.over the side, a payroll tax that hits small and medium-size

:44:30. > :44:35.businesses. -- EEF two. The details need to be watched carefullx as they

:44:36. > :44:42.ensure that smaller companids are exempted. Businesses want ddcent

:44:43. > :44:48.infrastructure, strategic road networks, cheaper broadband, cheap

:44:49. > :44:51.energy supplies. These will generate growth, but Government's role in

:44:52. > :44:56.that partnership is to build the physical infrastructure thex need to

:44:57. > :44:59.operate in. Recent CBI survdys of businesses showed that nearly two

:45:00. > :45:04.thirds are worried about thd slow progress of infrastructure objects

:45:05. > :45:08.and they are right to be concerned. The gulf between the Governlent s

:45:09. > :45:18.rhetoric and the projects they have considered is widening. The quality

:45:19. > :45:23.of our infrastructure... Capital spending has halved since 2010. The

:45:24. > :45:27.Government seems to be misshng two simple facts. We have world beating

:45:28. > :45:31.innovators and businesses that want to expand and create jobs. They

:45:32. > :45:35.cannot do this without roads, broadband and good rail and air

:45:36. > :45:41.links. That is the Government's responsibility and it is fahling to

:45:42. > :45:45.deliver. If the Chancellor still claims to be leading a march of the

:45:46. > :45:50.makers, I am afraid the evidence shows he is reading in the wrong

:45:51. > :45:54.direction entirely. Goods exported last July reached their lowdst

:45:55. > :45:59.levels since September 2000 ten In the three months to November 20 5,

:46:00. > :46:04.the trade deficit stood at ?7.7 billion. The truth is, the trade

:46:05. > :46:06.deficit is a problem that this Government and the previous

:46:07. > :46:12.Coalition Government have s`id a number of times they would `ddress.

:46:13. > :46:18.In the north-east the balance of trade is positive, and a large

:46:19. > :46:22.contributing factor to that was the quayside steel industry. To share my

:46:23. > :46:29.anger and frustration that the Government failed to do anything to

:46:30. > :46:33.save steel-making there. We hope that China will not get market

:46:34. > :46:38.economy status which could put the final nail in the National steel

:46:39. > :46:42.industry in this country. This is the first opportunity I havd had to

:46:43. > :46:45.congratulate my honourable friend and her colleagues from the

:46:46. > :46:51.steel-making areas for the fine work they have done in representhng,

:46:52. > :46:56.attempting to saved the stedl industry. I will come on to the

:46:57. > :47:03.steel industry later becausd I entirely agree with her. Thd

:47:04. > :47:08.Chancellor said he wants to double exports to ?1 trillion by 2020.

:47:09. > :47:14.Forecasts show he is set to miss this by more than ?350 billhon. In

:47:15. > :47:18.other words, he will be 70% short of his target. In 2011, the Prhme

:47:19. > :47:25.Minister said he intends to increase the number of UK exporters by

:47:26. > :47:31.100,000 by 2020. In its anntal business survey, the ONS felt the

:47:32. > :47:36.number of UK exporters actu`lly felt last year. The risk to long,term

:47:37. > :47:39.growth and productivity of failing to increase exports is stark. It

:47:40. > :47:44.means slower long-term growth, depressed wage growth and an even

:47:45. > :47:47.more depressed rising living standards. As the chief economist in

:47:48. > :47:52.the British Chamber of Commdrce said last year, unless radical mdasures

:47:53. > :47:56.are taken to strengthen our export performance, our trade deficit will

:47:57. > :48:00.continue to be a threat to the country's long-term economic

:48:01. > :48:04.performance. But just as serious is the threat posed by a Government

:48:05. > :48:12.divided over whether or not to pull plug on UK businesses' main trading

:48:13. > :48:16.partner. Trade with the EU was worth ?227 billion to the UK economy last

:48:17. > :48:20.year. It is a lifeline for lany businesses and for many workers The

:48:21. > :48:26.risk we face is from a Government that fails to unite, wanting to

:48:27. > :48:30.honour a partnership with those businesses and workers who rely on

:48:31. > :48:36.EU trade with their livelihood. Instead, it is divided on whether or

:48:37. > :48:39.not to kick the legs from under UK business, not least in respdct of

:48:40. > :48:44.relationships which account for more than half of UK trade and which are

:48:45. > :48:50.especially important for many S M Es. It is compounded by a l`g in

:48:51. > :48:55.productivity. ONS statistics show that as of 2014, productivity as

:48:56. > :49:00.output per hour in the UK w`s 2 % lower than the average for the rest

:49:01. > :49:05.of the G-7 countries. According to the ONS last year, the absence of

:49:06. > :49:09.productivity growth in seven years since 2007 is unprecedented in the

:49:10. > :49:13.post-war period. Productivity has been revised down next year, the

:49:14. > :49:18.year after and the year aftdr that and the gap between UK prodtctivity

:49:19. > :49:25.and the rest of the G-7 is now the widest since 1991. So our long-term

:49:26. > :49:27.strategy to boost trade and innovation is a partnership. The

:49:28. > :49:32.partnership cannot ignore the workforce. On the contrary, it can

:49:33. > :49:35.be one of our most powerful acids. A partnership between workers,

:49:36. > :49:40.businesses and Government to boost productivity is a long-term vision

:49:41. > :49:43.that requires a long-term commitment to investment from Government, one

:49:44. > :49:47.which stretches over many parliaments and requires a large

:49:48. > :49:54.degree of political as well as industrial consensus. If we truly

:49:55. > :49:58.want to boost the UK's prodtctivity, manufacturing is a good place to

:49:59. > :50:02.focus our attention for a ntmber of reasons. Not least because the

:50:03. > :50:06.productivity benefits of industry reach far beyond itself to benefit

:50:07. > :50:12.growth, skills and productivity in the UK as a whole. Manufacttrers

:50:13. > :50:20.improve efficiency at a pacd and intensity that outstrips allost any

:50:21. > :50:22.sector, there -- in fact, they inject three times their output in

:50:23. > :50:29.the economy into improving machinery. A survey in 2015 showed

:50:30. > :50:33.that 80% of their members intend to invest in machinery with thd aim of

:50:34. > :50:45.improving productivity. The technology again filters out.

:50:46. > :50:51.Investment in processes and systems improves efficiency and accdlerates

:50:52. > :50:54.the diffusion of technology. Generating sustainable growth,

:50:55. > :50:59.raising skill rebels and disbursing opportunity to every corner of the

:51:00. > :51:02.country, prioritising manuf`cturing should be the cornerstone of a

:51:03. > :51:06.strategy for increasing productivity. But this Government's

:51:07. > :51:10.track record shows it either does not understand this or else it is

:51:11. > :51:16.simply not willing to do wh`t is necessary to support the industry.

:51:17. > :51:19.And as my honourable friend from Redcar says, the tragic sittation

:51:20. > :51:23.which unfolded in the steel industry is a case in point. The UK steel

:51:24. > :51:29.industry ran a trade surplus in all but three of the last 17 ye`rs.

:51:30. > :51:34.Steel experts were worth ?6 billion to the UK in 2014, not to mdntion

:51:35. > :51:42.the 20,000 families the indtstry supported. Serious challengds

:51:43. > :51:45.coalesced. A glut of global supply, energy costs, the strong potnd.

:51:46. > :51:50.These were difficult challenges but surmountable for a Government. I

:51:51. > :51:54.will give way. Does he accept that the fundamental problem is that the

:51:55. > :52:02.price of steel has almost h`lved and no Government can change th`t? And

:52:03. > :52:05.of course what she says is true the price had halved, but other

:52:06. > :52:10.countries in the European Union chose to intervene while we said

:52:11. > :52:17.that we would not, and I'm `fraid that the record of the Government on

:52:18. > :52:20.this has been woeful. With the honourable gentleman agree to send

:52:21. > :52:26.me details of other governmdnts in the EU that have intervened

:52:27. > :52:30.supposedly to save their stdel industries, and I will pass this on?

:52:31. > :52:37.Because they must be in bre`ch of the state aid rules. We deb`ted this

:52:38. > :52:42.so many times. The minister knows that some countries choose to

:52:43. > :52:48.operate using the state aid rules in a far more beneficial way that we do

:52:49. > :52:53.in this country. She knows that and it is about time the Governlent here

:52:54. > :52:56.chose to do the same. The industry needed the Government to pl`y its

:52:57. > :53:00.role in what should be a partnership. The situation demanded

:53:01. > :53:04.that the Government see the long-term strategic value of steel

:53:05. > :53:07.production. It needed the UK to do what other UK governments -, what

:53:08. > :53:12.other governments did and moved swiftly to protect its industries. A

:53:13. > :53:15.lack of strategy, willingness to make a strategic interventions and

:53:16. > :53:19.unwillingness to support thd industry through practical steps

:53:20. > :53:23.well within its capabilities, tackling business rates through the

:53:24. > :53:25.supply chain, dealing with electricity costs, better

:53:26. > :53:31.procurement practice to favour British steel armour the Government

:53:32. > :53:35.failed to step up to the pl`te as a partner of industry. In doing so, it

:53:36. > :53:39.turned a temporary, toxic mhx of challenges into a permanent gap in

:53:40. > :53:43.our industrial make-up. This is a lesson we have to take seriously.

:53:44. > :53:48.Productivity will continue to lag in the UK as long as Government sit on

:53:49. > :53:54.the sidelines and wash their hands of the responsibility to safeguard

:53:55. > :53:59.key industries. The aspirathon here is one everyone in the Housd will

:54:00. > :54:01.agree with, and economy with high skilled, well-paid jobs, and economy

:54:02. > :54:06.in which businesses will grow, export and investment to boost

:54:07. > :54:11.productivity. Agreeing on the aim is one thing but the way we go about it

:54:12. > :54:14.is quite another. The fact hs achieving it requires a long-term

:54:15. > :54:17.partnership in which we chalpioned the workforce and business.

:54:18. > :54:28.Investment, not cuts. And economy that creates we`lth not

:54:29. > :54:31.relies on consumer borrowing. We need a strategy for workers,

:54:32. > :54:35.business and government to work together for Britain. Government's

:54:36. > :54:41.was not of an observer, it hs making sure that our exporters get the help

:54:42. > :54:47.they need, taking action to boost productivity. Tackling the skills

:54:48. > :54:50.agency. Safeguarding key industries. The Minister and her governlent have

:54:51. > :54:53.failed on each point. They can't deliver, they won't be an active

:54:54. > :54:59.part of that partnership because they don't believe in intervening.

:55:00. > :55:03.Their empty rhetoric would get our economy nowhere. Only a long-term

:55:04. > :55:08.industrial strategy will deliver that high-value economy will want to

:55:09. > :55:09.see. A strategy of partnership and a strategy that is both pro-btsiness

:55:10. > :55:20.and pro-worker. I am delighted to be called so early

:55:21. > :55:23.in this important debate. I was particularly keen to catch xour eye

:55:24. > :55:28.in this debate because we h`ve so few debates in this house on

:55:29. > :55:32.exports, and I believe that if we are to grow our economy sustainably

:55:33. > :55:37.the only way to do it is vi` increasing our exports. So this is

:55:38. > :55:40.an important debate, and it is a great pity that our politics

:55:41. > :55:46.produces such negativity from all the opposition parties, and matters

:55:47. > :55:49.and total contrast to my right honourable friend the Brock 's tale,

:55:50. > :55:59.who is so positive and outw`rd looking, and producing such good

:56:00. > :56:10.policies, just a champion one or two of the achievements, becausd I am

:56:11. > :56:19.passionate about exports, and I do want to see this country exporting

:56:20. > :56:25.more. Just to champion some of the achievements, which I think helped

:56:26. > :56:30.exports considerably, a comlitment to cut ?10 billion of red t`pe to

:56:31. > :56:35.back British business and ptt resources into more producthve use,

:56:36. > :56:39.on top of ?10 billion that we cut in the last parliament. We havd cut

:56:40. > :56:44.corporation tax to 20%, one of the lowest rates in the G-7, and we have

:56:45. > :56:58.an aspiration to cut it further Boosting skills and on top of the 3

:56:59. > :57:04.million in the last Parliamdnt, as I was saying, investing 6.9 mhllion in

:57:05. > :57:08.UK research, and in particular protecting the science budgdt of

:57:09. > :57:14.?4.9 billion per annum. All of this will help our innovative colpanies

:57:15. > :57:18.in this country, building stronger links with emerging markets,

:57:19. > :57:23.especially China and India. I was delighted to see that both leaders

:57:24. > :57:27.of those, the largest populous nations in the world, have been to

:57:28. > :57:35.this country in the last ye`r, and what successful visits they have

:57:36. > :57:40.had. So my right honourable friend, the member for Bromsgrove, hn

:57:41. > :57:46.launching the government's productivity plan, said this:

:57:47. > :57:49.Britain is home to the world's most innovative and dynamic businesses,

:57:50. > :57:54.staffed by incredibly talented and hard-working individuals. Hd went on

:57:55. > :57:58.to say higher productivity leans higher incomes. When productivity

:57:59. > :58:04.rises, standards of living rise too. So today I am proud to practice

:58:05. > :58:10.Dunne publish -- proud to ptblish this. Honourable members from all

:58:11. > :58:15.sides of the sides have comlented on productivity this afternoon, and it

:58:16. > :58:20.is true that we lag behind some of our major competitors in

:58:21. > :58:23.productivity. And I think m`ny economists have puzzled over this,

:58:24. > :58:27.but I think the reason is actually very simple. In that list of

:58:28. > :58:31.achievements that I gave just now, I omitted the fact, and this lust be

:58:32. > :58:34.hugely welcomed to all membdrs of the house, that we have a rdcord

:58:35. > :58:39.number of people in work in this country, due to our flexibld labour

:58:40. > :58:46.laws, we have 32 million people in work in this country, more than ever

:58:47. > :58:49.before, and that number is rising. I believe because of that fact,

:58:50. > :58:52.because we have more people employed, maybe some of our

:58:53. > :58:56.companies have not invested quite as much as they might have dond in

:58:57. > :58:59.capital equipment, which wotld be labour-saving, which has happened on

:59:00. > :59:01.the continent, where their labour laws are much more to the board

:59:02. > :59:11.There are higher unemployment resulting from that, Greece, 50

:59:12. > :59:16.youth unemployment. Here, I am grateful to say, that our youth and

:59:17. > :59:21.implement is dropping. I thhnk this is a terrific achievement in this

:59:22. > :59:26.country. Let's have a look `t where trade is going around the world In

:59:27. > :59:34.2014, UK's export of goods `nd services totalled 513 billion, and

:59:35. > :59:39.imports totalled 548 billion, of which the EU accounted 45% of

:59:40. > :59:46.exports and 53% of imports. So the balance of trade with the ET is

:59:47. > :59:49.against us. In other words, we are importing less from the EU than we

:59:50. > :59:54.are exporting to them. So there is no reason why we should not look

:59:55. > :59:57.round the rest of the world to see where we could export more. I

:59:58. > :00:01.commend to the Minister this is exactly what we ought to be doing.

:00:02. > :00:14.This is against the backgrotnd of the policy of wanting to increase

:00:15. > :00:18.trade. I think there is no reason why we could not do much more in

:00:19. > :00:34.tonnes of export. UK TIA in the last few years has been -- UK UKTI.

:00:35. > :00:44.How we might encourage UKTI to do even more, this business in my

:00:45. > :00:49.constituency exports to 40 countries around the world, it makes hts

:00:50. > :00:54.products in China, exports them directly to Australia withott them

:00:55. > :00:58.ever touching this country `nd yet it pays UK corporation tax. These

:00:59. > :01:07.are precisely the sort of medium-sized companies we otght to

:01:08. > :01:12.be in foraging to export more. One of things they said was there was

:01:13. > :01:17.too much emphasis. If we cotld encourage people, it is an

:01:18. > :01:22.inductively important part of the exporting programmed to go to these

:01:23. > :01:28.trade shows. If we could encourage a little bit more incentive from UKTI,

:01:29. > :01:31.these companies to go to thdse trade shows, particularly where they have

:01:32. > :01:35.a record of success, and I have five or six points at the end of my

:01:36. > :01:41.speech that I will suggest to the Minister to encourage exporting

:01:42. > :01:46.This company made the point that it is only in about the second or third

:01:47. > :01:50.year, the second is exploration , the third if you are lucky hs

:01:51. > :01:53.beginning to make a profit. Therefore, they need a bit of

:01:54. > :01:57.extension of that from the do for years. They are in their thhrd year,

:01:58. > :02:03.they are about to be cut off as they are about to be profitable. I can

:02:04. > :02:08.see my honourable friend wants to intervene. I am grateful, I am

:02:09. > :02:12.delighted to see my predecessor Lord Maude recently. Would he agree with

:02:13. > :02:17.me, a number of manufacturing firms in Horsham. What I would report the

:02:18. > :02:20.better service they are getting from the Foreign Office and our

:02:21. > :02:23.ambassadors abroad in helping British exports, that is solething

:02:24. > :02:29.that should be welcomed and put on the record. I partially agrde with

:02:30. > :02:34.my honourable friend, and I'm sorry to only partially agree. I `m not

:02:35. > :02:39.going to name, but this particular company went to one of our nearer

:02:40. > :02:41.embassies to this country and was distinctly unimpressed with the

:02:42. > :02:47.trade representatives that were there. He described them as spotty

:02:48. > :02:51.youths just out of university. Whereas he was saying that what we

:02:52. > :03:04.need is people in our embassies and indeed in Tampa, who will h`ve a

:03:05. > :03:16.record actually helping companies to export. There are approximately a

:03:17. > :03:19.million small and medium-sized in this country. I would suggest to my

:03:20. > :03:23.right honourable friend and minister there are still much to be done

:03:24. > :03:27.still far too many companies that don't understand what it is to

:03:28. > :03:30.export, and don't understand the advantages of exporting. Thdre are

:03:31. > :03:34.some world known figures th`t, once you have exported for the fhrst

:03:35. > :03:40.time, your productivity goes up by 7%. Not only does your profhts go up

:03:41. > :03:43.because hopefully you are doing profitable business exporting, it

:03:44. > :03:46.also means that your productivity will go up as well because ht

:03:47. > :03:51.sharpens your whole operation because you are having to ddal with

:03:52. > :03:57.that extra dimension. I think we could do much more, in coll`boration

:03:58. > :04:00.with UKTI, export finance, laking them all come together much more

:04:01. > :04:07.closely. I have another suggestion at the end of my speech, innovation

:04:08. > :04:12.UK. And UKTI could get much closer together so that some of our best

:04:13. > :04:19.seed generated companies should actually at the very beginnhng of

:04:20. > :04:23.their existence, not when they are already established, right `t the

:04:24. > :04:26.beginning of their existencd, but many high-tech companies should

:04:27. > :04:33.think about exporting as ond of the first things they do after they

:04:34. > :04:37.become established. I concur with the honourable member about the

:04:38. > :04:43.importance of UKTI. Unfortunately, in the Autumn Statement, thd

:04:44. > :04:47.Chancellor slashed the budgdt of UKTI, and so outraged is thd

:04:48. > :04:57.organisation that its chief executive resigned, so clearly his

:04:58. > :05:01.government is not helping UKTI. We all have to encourage them to

:05:02. > :05:07.operate within the climate there is, although I have to say frankly if

:05:08. > :05:10.you want to expand exports, UKTI is one of those areas where actor I

:05:11. > :05:16.would put the money but I would make sure it is operating as well as it

:05:17. > :05:22.possibly can. One of the suggestions I make to my honourable fridnd is

:05:23. > :05:24.that it should be benchmarkdd against the best export agencies in

:05:25. > :05:28.the world. One should never ever be complacent and I think by

:05:29. > :05:34.benchmarking that is one of the things we can do. After all, as my

:05:35. > :05:37.right honourable friend has just said in his intervention to me, on

:05:38. > :05:44.the whole, despite what my company said when they went to see the local

:05:45. > :05:47.Lord Maude. Our ambassadors are some of the best in the world, and we

:05:48. > :06:00.have one of the best network ambassadors of the world,

:06:01. > :06:04.one of the most compared to have embassies around the world. It was

:06:05. > :06:06.this government after all that started opening embassies, where the

:06:07. > :06:09.previous government had closed it. So we have the network, we need in

:06:10. > :06:11.some places to sharpen up some of the expertise, but I think that

:06:12. > :06:15.gives us a very good financd -- foundation on which to build.

:06:16. > :06:21.Through our soft power, through the BBC World Service, the Brithsh

:06:22. > :06:24.Council, we are very well established in one of those -- many

:06:25. > :06:26.of those major bricks markets and other smaller markets where we need

:06:27. > :06:29.to concentrate our efforts. I think it is in those markets, the

:06:30. > :06:38.high-growth markets, as opposed to Europe, which is lower growth, is

:06:39. > :06:40.perhaps where we need to be concentrating some of our efforts. I

:06:41. > :06:43.am delighted therefore that are exports to China are growing in such

:06:44. > :06:49.quantities, albeit from a low base, but actually we are putting

:06:50. > :06:53.significant resources of UKTI into China and it is paying dividends.

:06:54. > :06:58.The visit from the Chinese premier this year will only help to cement

:06:59. > :07:01.that effort. So, Madam Deputy Speaker, I don't want to make too

:07:02. > :07:07.long a speech but I do think there are some things that we could do to

:07:08. > :07:14.help companies export. I have some specific ideas for fiscal incentives

:07:15. > :07:18.to give to medium and small size businesses, that you could give them

:07:19. > :07:26.some specific fiscal help whth export related activity. And I think

:07:27. > :07:28.that maybe a better way in lany companies, and alerting manx

:07:29. > :07:33.companies, because companies are very cute as to how they can save

:07:34. > :07:36.tax. Maybe one of the best ways we could do of encouraging all medium

:07:37. > :07:41.and small sized businesses to think about exporting, and to say to them

:07:42. > :07:51.that actually this isn't necessarily going to be a huge cost in xour

:07:52. > :07:54.possible export markets. Thd second suggestion I have already mdntioned,

:07:55. > :07:57.to extend the tap programme from three to four years, where success

:07:58. > :08:01.has already been demonstratdd. If you can't make success withhn the

:08:02. > :08:05.three-year period, you are tnlikely to make it, that if you alrdady

:08:06. > :08:08.demonstrating success, such as this company I have already menthoned, I

:08:09. > :08:13.wish my honourable friend would listen from the front bench, please.

:08:14. > :08:16.If you extended the tap programme from three to four years whdn

:08:17. > :08:24.success can be demonstrated, I think that would be helpful. The third

:08:25. > :08:29.suggestion I have is that wd should buddy a successful exporting SME

:08:30. > :08:33.with one that exports for the first time. I think that would be really

:08:34. > :08:43.helpful. It is the fear the unknown when you are a company only in the

:08:44. > :08:49.-- only implying a fewer employees, having to deal with the VAT,

:08:50. > :08:51.national insurance, and the Manufacturing, that is actu`lly

:08:52. > :08:54.quite frightening for a small company, and I think that is what is

:08:55. > :08:56.so off-putting. But actuallx bloodying with one in the s`me

:08:57. > :09:06.market but hopefully not colpeting, would be one of the ways.

:09:07. > :09:13.If you tell us if you could not get his own minister to listen to him,

:09:14. > :09:17.what hope have we? I think H will ignore that intervention.

:09:18. > :09:22.LAUGHTER I think I could have come up with

:09:23. > :09:30.something better myself. So the fourth suggestion I have is to give

:09:31. > :09:41.blacks a stronger exporting role. -- to live LETs a stronger exporting

:09:42. > :09:44.role. Every single one of those nine divisions they have should be

:09:45. > :09:50.utterly focused on exporting. I would give a much greater

:09:51. > :09:56.combination between UKTI and Innovate UK. Innovate UK is already

:09:57. > :10:01.developing the technology board strategy and giving help to

:10:02. > :10:03.companies to expand their ideas often in debating ideas frol the

:10:04. > :10:11.best universities and this hs an area from which the UK would

:10:12. > :10:16.ultimately, from little acorns often the greatest companies grow. That is

:10:17. > :10:28.where we might look at encotraging them to export. I would reinvest --

:10:29. > :10:33.reinvigorate... And incentivise them properly. Pay them properly, because

:10:34. > :10:37.otherwise the private sector will always continue to employ the very

:10:38. > :10:41.best people. I think we havd made very good progress in the l`st

:10:42. > :10:46.Parliament and this Parliamdnt. I think there is much more to do. Our

:10:47. > :10:49.all-party trade and investmdnt group will help the Government whdrever it

:10:50. > :10:56.possibly can die cutting people in touch with the UKTI, in touch with

:10:57. > :11:03.their LEPs and as we go arotnd the world, every one of us, every member

:11:04. > :11:06.of Parliament, should be aldrt as to which companies in their

:11:07. > :11:09.constituency are able to export to those markets, and put thosd

:11:10. > :11:13.companies in touch with that possibility, and in that wax I think

:11:14. > :11:19.we can all become trade export ambassadors, and I think it would

:11:20. > :11:26.help exporting in this country considerably. Thank you. It is a

:11:27. > :11:32.pleasure to take part in thhs debate and to follow the honourabld member.

:11:33. > :11:35.He has made a contribution with some sensible suggestions, particularly

:11:36. > :11:38.about the buddy system with businesses. It is a sensibld one

:11:39. > :11:43.that all the agencies involved should take onboard. I was not

:11:44. > :11:49.expecting to speak quite so early in this debate. It is clearly ` matter

:11:50. > :11:53.of great interest to some. Unfortunately, this opposithon

:11:54. > :11:57.debate memo does not seem to be passed to the official opposition.

:11:58. > :12:01.There are some honourable mdmbers providing an honourable excdption

:12:02. > :12:07.but it is a little bit surprising given how important these

:12:08. > :12:13.fundamental tenets of our economy are, not just to the economx but to

:12:14. > :12:16.the services that they provhde, -- provide the money to pay for. You

:12:17. > :12:22.don't get the economy right, you do not have the services. I am really

:12:23. > :12:26.pleased to take part in this and I'm going to focus on one of thd areas

:12:27. > :12:30.where I think the UK but in particular Scotland has verx strong

:12:31. > :12:33.both natural and competitivd advantages, and that is in dnergy.

:12:34. > :12:36.Oil and gas, as I have touched upon, Oil and gas, as I have touched upon,

:12:37. > :12:42.and double would buy to thank the minister for what was a poshtive

:12:43. > :12:45.response to my question abott oil and gas. I think it would bd more

:12:46. > :12:49.helpful if we focused around what could be done to help the shtuation

:12:50. > :12:56.rather than the sum of the politics of round it. I except wholeheartedly

:12:57. > :12:59.that this... We need to reflect on what message this place sends to the

:13:00. > :13:03.folk in Aberdeen being laid off when we are having knock-about round

:13:04. > :13:09.about the oil price. It is not helpful, but I do respect, `ccept

:13:10. > :13:13.and fat full for the positive comments. It would seem to le that

:13:14. > :13:18.this Government has turned over a new leaf this year in his approach

:13:19. > :13:21.to oil and gas. I've had positive conversations with the Energy

:13:22. > :13:27.Minister today and there is also a positive response to the qudstions

:13:28. > :13:32.by Matt Angle friend the melber for Livingston. -- my honourabld friend.

:13:33. > :13:37.We are in an incredibly difficult position in terms of the oil price.

:13:38. > :13:43.Jobs are being lost. But thdre is still a bright future. The dnergy

:13:44. > :13:46.industry is doing what it c`n to produce -- reduce costs.

:13:47. > :13:51.Unfortunately in a large of cases that will require job losses. But it

:13:52. > :13:56.also requires innovating. It does require help from Government to

:13:57. > :14:01.bridge over what we hope will be a temporary downturn. Most people are

:14:02. > :14:06.expecting the oil price to rise at some stage, it is just not nearby

:14:07. > :14:10.when and how much. The constituency I represent in Aberdeen South,

:14:11. > :14:15.Aberdeen is a city of innov`tors, no doubt about that. It will pdrhaps

:14:16. > :14:19.come as no surprise to some of my colleagues on these benches that it

:14:20. > :14:25.is the city in Scotland that filed the most patents in 2014. More so

:14:26. > :14:29.than Edinburgh, with a population twice the size of Aberdeen, and more

:14:30. > :14:34.so than Glasgow, with a poptlation almost three times the size of

:14:35. > :14:37.Aberdeen. Primarily, in the oil and gas but also in terms of life

:14:38. > :14:43.sciences, biosciences and food and drink. This is a city in whhch it is

:14:44. > :14:48.driving but it is unquestionably an oil and gas and indeed an energy

:14:49. > :14:53.hub. The job losses announcdd by BP yesterday, coming on the back of 115

:14:54. > :14:59.announced before are genuindly heartbreaking for those involved. As

:15:00. > :15:05.I have said though, the indtstry is taking steps it can to innovate An

:15:06. > :15:09.innovation is one of the hallmarks of the oil and gas industry. It is

:15:10. > :15:13.heartening to see the level of innovation and the level of renewed

:15:14. > :15:21.collaboration that is taking place in the industry as they work to deal

:15:22. > :15:25.with the low oil price. Somd of the issues that the industry had were

:15:26. > :15:32.pre-existing that they have been exacerbated. There are thred sides

:15:33. > :15:35.of the coin in terms of the cost and income, oil and gas companids facing

:15:36. > :15:40.these. One is the oil price. None of us can do anything about th`t. Two

:15:41. > :15:48.is the costs that the industry is exposed to. They are doing what they

:15:49. > :15:53.can. Third is taxation. I al pleased to see that there is an open mind on

:15:54. > :15:57.the Treasury benches around about this and I plead with them to look

:15:58. > :16:04.at the oil and gas taxation in the round to see what can be done. There

:16:05. > :16:09.is also an important point. There is -- the apprenticeship levy has been

:16:10. > :16:13.raised and we wholeheartedlx support this provided it has the investment

:16:14. > :16:16.coming to Scotland, that thdre have been questions asked, again by my

:16:17. > :16:24.right honourable friend the member for Livingston, about the double

:16:25. > :16:28.imposition of an apprenticeship scheme on our oil and gas companies

:16:29. > :16:34.who already pay into apprenticeship schemes. As part of progressing and

:16:35. > :16:39.maintaining Aberdeen's position as an innovative hub, local

:16:40. > :16:45.authorities, Aberdeen City Council and Aberdeenshire councils `re

:16:46. > :16:48.exploring a city deal and as well as investment in infrastructurd, which

:16:49. > :16:55.is obviously an important p`rt of our debate and a key way of Security

:16:56. > :16:59.economic growth, they are also looking at how they can continue to

:17:00. > :17:06.make the best of the experthse and innovation that the city of Aberdeen

:17:07. > :17:08.is proud to host. There are proposals within the city ddal to

:17:09. > :17:14.create an innovation Hub around about the two universities, bringing

:17:15. > :17:18.together the city and universities in a way that has been disctssed

:17:19. > :17:22.here already. I hope, and it is part of the measures required to protect

:17:23. > :17:25.the north-east of Scotland, and provide that bridging that H

:17:26. > :17:31.mentioned for the oil industry, I think the Aberdeen city reghon deal

:17:32. > :17:40.is an important part of that toolkit and one I would commend agahn to the

:17:41. > :17:49.Government. There are many ways even in these times of diffhculty,

:17:50. > :17:54.where innovation in the oil industry can provide a massive support to the

:17:55. > :18:01.UK economy. Enhanced oil recovery is one of them. Looking at being one of

:18:02. > :18:04.the first movers in terms of decommissioning, not somethhng we

:18:05. > :18:08.want to see happening prematurely but something that was inevhtably

:18:09. > :18:13.going to happen. We have thd ability as one of the more mature ohl and

:18:14. > :18:18.gas basins in the world to take the expertise that we have and dxport it

:18:19. > :18:26.globally. That is an opporttnity that we cannot afford to miss. In

:18:27. > :18:29.terms of exports, the north,east and the oil and gas supply chain which

:18:30. > :18:35.in fairness is much more th`n Aberdeen, is the length and breadth

:18:36. > :18:40.of the UK, is good. It is gdtting better. Aberdeen relies much less

:18:41. > :18:46.upon the North Sea in terms of supply companies based therd for

:18:47. > :18:49.their income. I would like to draw the House' attention, though, to

:18:50. > :18:54.something announced at the tail end of last year, and it was solething

:18:55. > :19:00.that in principle I support and I'm not criticising, but I do think it

:19:01. > :19:03.would need to be taken in the right way, with a more supportive approach

:19:04. > :19:08.to oil and gas, and that is the announcement that they will be an

:19:09. > :19:14.export credit agreement of $500 million for a couple of companies

:19:15. > :19:20.based in the UK for exports to Petrobras, the Brazilian st`te-owned

:19:21. > :19:26.oil major. That is good in htself, in the fact that it helps stpport

:19:27. > :19:32.exports from the UK, from Aberdeen, but I do think we need to bd careful

:19:33. > :19:34.when we are looking at thesd things. If we are providing exports to

:19:35. > :19:41.something like the oil and gas industry elsewhere, we may

:19:42. > :19:45.inadvertently mean that we require greater imports of oil and gas in

:19:46. > :19:51.the future. So we do need to get it right in terms of... I do not mean

:19:52. > :19:55.to criticise that but you h`ve to have both sides there. You have to

:19:56. > :20:04.have support for exports but you also have to have the support for

:20:05. > :20:07.the domestic industry. Aberdeen and Scotland more widely have htge

:20:08. > :20:15.natural advantages when it comes to green energy. The Paris deal, I

:20:16. > :20:21.think, cements the opportunhty we have in this regard. There hs a sad

:20:22. > :20:27.irony in that the deal comes at the same time as the UK Governmdnt has

:20:28. > :20:31.taken the hatchet to a numbdr of green energy policies. One which

:20:32. > :20:37.undermines that opportunity to truly embrace what will be one of the

:20:38. > :20:46.biggest global growing markdts of this century. In the Secret`ry of

:20:47. > :20:50.State for Energy and Climatd Change's much heralded recess

:20:51. > :20:55.speech, she said, and I quote, at the same time we are building new

:20:56. > :21:01.interconnect is to make it dasier to import cheaper electricity from

:21:02. > :21:06.Europe. I and the SNP support the building of interconnect is. I think

:21:07. > :21:10.an integrated European markdt for electricity is something whhch will

:21:11. > :21:16.be a good thing, but I think the ambition there and the logic for

:21:17. > :21:20.doing it is the wrong way round We should not be doing this to import

:21:21. > :21:24.electricity. We should be ghving it to export the green electricity

:21:25. > :21:32.which can be produced from the wind, waves, C and tides in Scotl`nd. That

:21:33. > :21:35.is what we should be giving, that is the opportunity of interconnectors,

:21:36. > :21:40.not to import cheap electricity but to build it industry we can be proud

:21:41. > :21:43.of, to develop the skills wd need. And the renewables sector is an

:21:44. > :21:48.important part of rebalancing the economy. Rebalancing it in

:21:49. > :21:54.geographic terms as much as anything else. There is often a crithcism,

:21:55. > :21:58.particularly of onshore wind, that it does not provide that many jobs.

:21:59. > :22:02.The reality is it does provhde a lot of jobs, and it provides jobs in

:22:03. > :22:06.places where without the wind industry there would likely be no

:22:07. > :22:12.jobs at all. You cannot overstate the importance of a small ntmber,

:22:13. > :22:21.perhaps, of highly paid jobs in an area where they do not exist. Will

:22:22. > :22:26.he also accept that many of the studies in Scotland have shown that

:22:27. > :22:29.the onshore wind industry and the way it spoils the landscape has

:22:30. > :22:33.displaced and taken away a lot of to risk jobs? I have heard a sdssion is

:22:34. > :22:38.around about this year in, xear out, around about this year in, xear out,

:22:39. > :22:41.but a spot as I understand ht, the tourist sector in Scotland hs doing

:22:42. > :22:46.very well. It continues to do well and it is a major sector of growth

:22:47. > :22:50.in the Scottish economy so H do not quite understand the asserthons

:22:51. > :22:56.There is anecdotal evidence but it is no more than that. Someone who

:22:57. > :23:00.says, I came to Scotland, I didn't like the wind turbines. Somdbody

:23:01. > :23:02.else is there to take their place and will be because Scotland offers

:23:03. > :23:07.a world-class tourism that H do not a world-class tourism that H do not

:23:08. > :23:13.believe is in anyway to spohl, in the honourable gentleman's words,

:23:14. > :23:17.why the wind industry. We h`ve also mentioned, and perhaps this is being

:23:18. > :23:23.overly negative as has been suggested previously, but there are

:23:24. > :23:27.genuine critiques here. In terms of green energy policy, that is. There

:23:28. > :23:31.have been various things done but the most damaging, I think, to the

:23:32. > :23:37.United Kingdom's reputation and in terms of the financial and

:23:38. > :23:49.investment in confidence th`t is required to secure investment in the

:23:50. > :23:56.UK, is pulling the plug on carbon storage. Where companies, and they

:23:57. > :24:04.were big companies, were investing significant time and resources on

:24:05. > :24:08.the bases of this visit good word of this United Kingdom Governmdnt.

:24:09. > :24:15.Before they even had the opportunity to submit their bids, that plug was

:24:16. > :24:20.pulled and the damage was done. You cannot underestimate the impact that

:24:21. > :24:26.that and all of the incremental tax on green energy policy have. We are

:24:27. > :24:35.missing a major trickier. This is a huge opportunity to grow our skill

:24:36. > :24:39.base and do it in differing parts of the United Kingdom, and to send out

:24:40. > :24:47.damaging messages really dods question commitment not just of the

:24:48. > :24:50.UK of the Government to cle`n energy and the talk about Paris and the

:24:51. > :24:55.global climate change deal but actually to the economy and

:24:56. > :25:00.investment more widely. The last bit I would like to touch on, and it was

:25:01. > :25:03.mentioned by the honourable member for Dundee East, the green

:25:04. > :25:08.investment bank, something supported by this Government, I think by the

:25:09. > :25:12.entire chamber when it was debated before I was here, that is ` shining

:25:13. > :25:18.example of how you would address market failure. How you can ensure

:25:19. > :25:23.that the investment was dirdcted to areas where you think they `re right

:25:24. > :25:27.and given the support that the nascent industries need to get off

:25:28. > :25:33.the ground. We have repeatedly criticised what is proposed and

:25:34. > :25:36.again we will oppose the privatisation of the green

:25:37. > :25:45.investment bank if there ard not cast iron assurances that the remit

:25:46. > :25:51.will be protected. Post Parhs, the rules of the game have changed. I

:25:52. > :25:56.think the UK, Scotland, havd a chance to seize the benefit of that.

:25:57. > :26:07.Scotland is ready but I fear that as part of Tory Britain we are being

:26:08. > :26:11.left behind. Thank you. I al very grateful to have the opporttnity to

:26:12. > :26:15.speak. I have to say, I agrde with my right honourable friend the

:26:16. > :26:20.member for Brock Stowe and `lso the honourable friend, the membdr for

:26:21. > :26:25.The Cotswolds. The opposition benches have pasted eight -, painted

:26:26. > :26:30.a pretty gloomy picture this afternoon. The state of the UK's

:26:31. > :26:37.economy has improved signifhcantly since Labour's great recesshon, and

:26:38. > :26:40.now our members have mentioned - as members have mentioned, it hs

:26:41. > :26:44.growing faster than any othdr G nation. This has largely bedn a

:26:45. > :26:47.function of rising employment and I would hope that all members of the

:26:48. > :26:53.House would welcome this rise in employment. However, the economic

:26:54. > :26:56.growth has not been because of productivity and improvement in

:26:57. > :27:02.productivity, and as my right honourable friend has mentioned we

:27:03. > :27:05.are not looking at addressing the productivity issue, because it is

:27:06. > :27:09.one that has been a long-term problem affecting our econoly, and

:27:10. > :27:14.one which successive governlents have failed to tackle. With our

:27:15. > :27:25.productivity consistently l`gging behind that of other major

:27:26. > :27:31.economies. So I would challdnge the notion... Publishing the

:27:32. > :27:34.productivity plan last summdr. This recognition that addressing this gap

:27:35. > :27:39.will be key to ensuring that sustainable recovery, a long-term

:27:40. > :27:45.successful economy, and to live in the end our long-term econolic plan.

:27:46. > :27:50.Although we have to be clear to recognise that this is not simply

:27:51. > :27:53.going to happen overnight. The productivity plan outlines 05 key

:27:54. > :28:00.areas which need to be addrdssed. They are built upon two pillars

:28:01. > :28:07.including long-term investmdnt and promoting a dynamic economy. This

:28:08. > :28:10.includes measures to promotd and encourage trade and export, and it

:28:11. > :28:17.is this I would like to focts on this afternoon, like many mdmbers.

:28:18. > :28:21.The exporting is great camp`ign I hope, will inspire and promote

:28:22. > :28:26.thousands of new businesses to export. Firms that do export are

:28:27. > :28:30.more productive, more innov`tive, and less likely to go out of

:28:31. > :28:35.business, and it is for this reason that I'm jointly hosting and exports

:28:36. > :28:43.of event in Canada next week, with UKTI and the chamber of Comlerce.

:28:44. > :28:48.This will be an opportunity for small, local small and meditm-sized

:28:49. > :28:51.businesses to understand wh`t global opportunities exist, the benefits of

:28:52. > :28:59.exporting and also finding out what practical help is available. The

:29:00. > :29:03.export experiences ATP group are an excellent example of the power and

:29:04. > :29:07.opportunities that are available in the export market. I would like to

:29:08. > :29:16.invite my right honourable friend the member for Brock Stowe to come

:29:17. > :29:22.and visit ATP with me. They are based in Cannock Would, and ATP is

:29:23. > :29:29.your's largest independent manufacturer of automated

:29:30. > :29:35.electronics. Essentially, rdbuilding car parks, for example gearboxes, to

:29:36. > :29:40.the specifications of the original product, using reclaimed,

:29:41. > :29:46.re-engineered and new parts. Their clients include Ford, Land Rover and

:29:47. > :29:49.Volvo to name a few. Exports make up two thirds of their business and

:29:50. > :29:56.they are exporting to around 35 countries. During the last xear

:29:57. > :30:03.alone, their international trade has increased by over 57%. ATP have

:30:04. > :30:09.shown that the best ways to address productivity and increase exports is

:30:10. > :30:19.by investing in skills, devdlopment, new technology and R and D two

:30:20. > :30:23.client requirements. I would be delighted to come and visit ATB

:30:24. > :30:27.They sound like an excellent success story with many lessons to be

:30:28. > :30:34.learned from other companies, so I accept the invitation gladlx. I am

:30:35. > :30:36.thrilled that she will join me to visit ATP. I know they will be

:30:37. > :30:57.incredibly pleased, too. This 1 trillion export targdt to be

:30:58. > :31:04.met by 2020 and end up seeing 1 0 thousand more companies exporting by

:31:05. > :31:11.this point. I will happily give way. I take what she says about @TP and

:31:12. > :31:19.her constituency, but it is clearly the case that the UK is a ndt

:31:20. > :31:23.importer of automotive prodtcts Our largest engineering industrx is a

:31:24. > :31:32.net importer basically from Europe. The plan has not worked. Thd oink

:31:33. > :31:36.eyeing going to make is that we are trying to increase exports, and I

:31:37. > :31:41.will come onto a few points relating to that. The productivity plans

:31:42. > :31:47.outlined several measures to help meet this target, including building

:31:48. > :31:59.stronger links with emerging markets, China, India Brazil.

:32:00. > :32:05.My honourable friend the melbers of The Cotswolds made a point hn terms

:32:06. > :32:11.of extending the trade access programme. Based upon ATP's

:32:12. > :32:15.experience of exporting, and I would like to raise a number of other

:32:16. > :32:19.issues and challenges faced by exporters, which I would like the

:32:20. > :32:28.minister to consider. They fall into three categories, including red tape

:32:29. > :32:33.and competitiveness, which represent barriers to exporting. Taking the

:32:34. > :32:37.uncertainty first, that partly comes out because of the market btt the

:32:38. > :32:42.issue I would like to particularly focus on is that of HM Customs

:32:43. > :32:52.impounding shipments for random checks. That can be really difficult

:32:53. > :32:55.when importing and exporting, when a just-in-time ordering mentality is

:32:56. > :33:01.commonplace. The UK is not `lone in this issue. The question to the

:33:02. > :33:06.minister is whether we can balance the understandable need to lonitor

:33:07. > :33:09.shipments whilst at the samd time providing more certainty to those

:33:10. > :33:17.firms that are importing and exporting. In terms of red tape

:33:18. > :33:18.this is an issue that busindsses regularly reference and it hs true

:33:19. > :33:39.here and abroad. Customs warehousing is a facility

:33:40. > :33:44.for importers so that they can delay VAT pavements until the point when

:33:45. > :33:48.the goods leave the customer's warehousing facility or entdr

:33:49. > :33:54.another customs procedure. @ccording to ATP this is an excellent service

:33:55. > :34:00.for importing parts. However the red tape associated with it is

:34:01. > :34:05.cumbersome. As such ATP no longer uses the facility as the levels of

:34:06. > :34:08.paperwork outweigh the benefits This means that an excellent

:34:09. > :34:12.facility has been and are utilised. I would like to ask the Minhster to

:34:13. > :34:16.review this facility and look at ways in which the paperwork can be

:34:17. > :34:21.reduced and simplified so that it can be used by those who have less

:34:22. > :34:29.capacity to deal with red t`pe and larger organisations. The honourable

:34:30. > :34:33.lady makes an important point about bureaucracy and the role of border

:34:34. > :34:40.control. The government is reviewing this at the moment with its border

:34:41. > :34:44.programme. At the moment 92$ of consignments are customs cldared in

:34:45. > :34:48.five seconds but her constituents are clearly having difficulties I

:34:49. > :34:55.will talk to the Trade Minister on her behalf and look to thesd

:34:56. > :34:59.problems. I am grateful for the update in terms of the revidws and I

:35:00. > :35:03.look forward to more inform`tion. I will also feed that back to ATP who

:35:04. > :35:09.are not using the facility `t the moment and maybe they would like to

:35:10. > :35:13.use it again. Turning to competitiveness, the costs `nd risks

:35:14. > :35:18.of a sporting can be off-putting. If we are really serious about

:35:19. > :35:22.encouraging exports surely we should look at ways to incentivise

:35:23. > :35:27.businesses to do so, potenthally through tax breaks. One tax which

:35:28. > :35:33.can be a burden to exporters is Air Passenger Duty. It is in re`lity

:35:34. > :35:38.attacks on exports. ATP spends thousands of pounds a year hn taxes

:35:39. > :35:43.alone. Every time they signdd deals they must travel abroad and the

:35:44. > :35:49.costs over when you are significant. We must realise that ADP like many

:35:50. > :35:52.businesses are competing in a global market. Therefore an is Air

:35:53. > :35:57.Passenger Duty makes them ldss competitive interims of contract and

:35:58. > :36:05.every -- owner is duties make them less competitive in terms than other

:36:06. > :36:09.companies. While some tried to avoid this tax by booking tickets abroad

:36:10. > :36:13.the Treasury is missing out. If that Air Passenger Duty is a devolved

:36:14. > :36:19.matter and the Scottish Govdrnment has announced that it will be cut by

:36:20. > :36:23.50% with a view to abolishing Ed, there is a need to consider the

:36:24. > :36:27.position, and it is probablx more urgent than ever. I want to ask the

:36:28. > :36:31.Minister to consider ways in which we could provide tax breaks on Air

:36:32. > :36:40.Passenger Duty for those who are exporting. I appreciate that at face

:36:41. > :36:45.value this is a kind of cut in tax revenues but I believe thesd will be

:36:46. > :36:48.overcome by the economic gahns from more businesses exporting and also

:36:49. > :36:55.exporting more of their goods and services. To conclude, Madal Deputy

:36:56. > :36:58.Speaker, with a need to address the productivity gap and the role that

:36:59. > :37:04.exporters complain closing ht, I believe it is important that we do

:37:05. > :37:08.all they can to encourage btsinesses to consider exporting. That is why I

:37:09. > :37:15.want the government to conshder ways in which we can address these three

:37:16. > :37:18.overriding issues that I've outlined today, uncertainty, red tapd,

:37:19. > :37:23.competitiveness. I will not support the motion as I do not belidve it

:37:24. > :37:26.reflects the current picturd and the government commitment to

:37:27. > :37:35.productivity and exporting. Ian Wright. Madame Jeopardy Spe`ker it

:37:36. > :37:40.is an honour and a privilegd to follow my fellow member of the

:37:41. > :37:45.business and innovations skhlls committee, a valid committed member

:37:46. > :37:49.providing insight and personal wisdom in some of the inquiries It

:37:50. > :37:53.is an honour to follow go. However I will support the motion tonhght

:37:54. > :38:00.because I agree with every word of it, to be frank. I believe ht gets

:38:01. > :38:03.to the heart of worrying structural imbalances in this economy. A

:38:04. > :38:09.reliance on consumer spending based on debt at the expense of

:38:10. > :38:12.investment, a reliance on domestic consumption at the expense of

:38:13. > :38:16.growing international markets, priority given to short-terl value

:38:17. > :38:21.extraction at the expense of long-term value creation and a

:38:22. > :38:25.reliance on Serbia's economx at the expense of manufacturing whhch can

:38:26. > :38:30.inject real productivity gahns across the country. Which r`ises

:38:31. > :38:34.living standards for all of us and for all of our constituents. As well

:38:35. > :38:38.as the points raised by the motion and would like to add the

:38:39. > :38:44.geographical imbalance in otr economy. As a north-eastern MP, I'm

:38:45. > :38:49.in London for half the week and I am back in God's own country for the

:38:50. > :38:54.remainder of the week! In tdrms of the London and the south-east

:38:55. > :38:57.economies, overheating, putting in turn pressure on infrastructure and

:38:58. > :39:03.housing supply in London, at the expense of sustainable economic

:39:04. > :39:07.growth elsewhere in the UK. Madame Debord is Speaker I welcome the

:39:08. > :39:11.focus on the motion of prodtctivity. We at the business select committee

:39:12. > :39:16.undertook our first inquiry of this Parliament and the government's

:39:17. > :39:21.productivity plan and we hope to produce our report shortly.

:39:22. > :39:25.Similarly the motion's reference in changing from grants to loans is

:39:26. > :39:29.welcome, as has already been said in the debate today, it is deeply

:39:30. > :39:33.concerning because it could undermine the competitiveness of

:39:34. > :39:37.this country. Capital is global and terms will see what they will get

:39:38. > :39:41.the best return and they cotld have leverage in in public sector

:39:42. > :39:46.investment as a result of their own private sector investment. We could

:39:47. > :39:49.be losing out, in this country, to seeing foreign direct investment.

:39:50. > :39:54.Let me finish the point. It's important that when we are

:39:55. > :39:57.attracting direct foreign investment into this country and this

:39:58. > :40:01.government and previous govdrnments have been very successful in this,

:40:02. > :40:04.we must make sure we are at the cutting edge of attracting foreign

:40:05. > :41:20.direct investment. And this puts out at considerable risk. The point of

:41:21. > :41:26.my question is about FDI. Does he agree with me that the fact that

:41:27. > :41:30.over 50% of FDI comes from the European union it has a strong case

:41:31. > :41:34.to remain in the European Union to encourage more in the futurd?

:41:35. > :41:41.That is important and to follow on from what the honourable gentleman

:41:42. > :41:46.was saying, I think that firms are making investment decisions but it

:41:47. > :41:58.is not just bad market but because they can see the UK as a springboard

:41:59. > :42:05.into the largest consumer on Earth. Japanese firms not just herd for the

:42:06. > :42:11.domestic market, but for a springboard into the whole Duropean

:42:12. > :42:13.market, and we risk that at real peril. I want to talk about trade.

:42:14. > :42:16.Trade performance is a good barometer of economic health but

:42:17. > :42:19.both at a micro and macro ldvel At a macro level, a billion to trade

:42:20. > :42:25.performance contributes to dconomic growth and helps to provide a

:42:26. > :42:35.surplus. The motion mentions trade deficit and goods of ?123 bhllion in

:42:36. > :42:40.2014. In that year, the current front, the biggest we have seen in

:42:41. > :42:44.post war history. For much of the past 30 or 40 years or so the trade

:42:45. > :42:50.deficit has been offset by investment from overseas. However,

:42:51. > :42:55.and most ominously, net prilary income derived from assets `broad

:42:56. > :42:59.has fallen from 3.3% of GDP to .1% in 2014. I think the ministdr should

:43:00. > :43:04.outline in her response what the government's view is on this matter

:43:05. > :43:08.because it has been very quhet on what is an incredibly cruci`l

:43:09. > :43:12.economic issue. I have menthoned macro, but in micro level, dxporting

:43:13. > :43:16.is very positive, especiallx for firms. It is good for the whder

:43:17. > :43:21.economy too. The evidence stggests an exporting business tends to be

:43:22. > :43:24.successful, and socially aw`re. And exporting Company tends to dmploy

:43:25. > :43:28.more workers and offer bettdr wages than an equivalent non-exporting

:43:29. > :43:32.company. Companies that exports have been shown to be more productive and

:43:33. > :43:37.invest more in research and develop them. There is a strong link between

:43:38. > :43:40.exporting and innovation. A business with a desire to export overseas

:43:41. > :43:45.more often than not has the discipline, the ambition, and that

:43:46. > :43:50.entrepreneurial flourish to develop new products and services that will

:43:51. > :43:53.better serve the new export markets, there will be sensitive and

:43:54. > :43:57.responsive to customer wishds, always the hallmark of a successful

:43:58. > :44:01.business. It is that the possibility of a virtuous circle for exporting

:44:02. > :44:05.businesses where they becomd more exposed to new demands, and

:44:06. > :44:10.increased, vision, which makes them more productive, Howard looking and

:44:11. > :44:13.better disposed to thinking of looking towards new protector

:44:14. > :44:17.improved profitability. On `verage, according to the British gels of

:44:18. > :44:22.commerce, businesses that export growth 20% more than businesses that

:44:23. > :44:28.don't. We need to encourage that much, much, more, because f`r too

:44:29. > :44:33.few British firms provide good and services that could be provhded

:44:34. > :44:41.against the world, export, only one in five British firms do so. Today

:44:42. > :44:44.pull motion refers to the UK's poor export performance. With thd

:44:45. > :44:47.greatest of respect to the party who tabled the motion, I would go

:44:48. > :44:52.further. I think our trade performance over the past 30 years

:44:53. > :44:57.or so has been dire and woeful, declining markedly with no genuine

:44:58. > :45:02.prospect of improvement for the future. The UK accounted for one in

:45:03. > :45:08.ten of the world's exports hn 1 50, now it is less than 3%. Of course

:45:09. > :45:11.emerging economies would always have resulted inevitably in a relative

:45:12. > :45:16.decline of global market sh`re for British goods and services, but not

:45:17. > :45:20.at the rate that the UK has unfortunately experienced. When

:45:21. > :45:26.received the growing world dconomy, we see that world trade is forecast

:45:27. > :45:32.to expand by $250 trillion by 2 50, we should have across the country

:45:33. > :45:35.and with government in a coordinated way, and efforts to ensure that we

:45:36. > :45:43.capture as much of that growth in the world economy as possible for

:45:44. > :45:48.British firms. He is making some very important points. He is right,

:45:49. > :45:52.I believe, in saying there hs a challenge here for more bushnesses

:45:53. > :45:55.to step up to the plate and move into exporting. Does he agrde with

:45:56. > :45:59.me this is symptomatic of a real cultural change that needs to

:46:00. > :46:01.happen, that won't just involve government but also businesses

:46:02. > :46:03.themselves looking at what they have been doing over the last Phtket

:46:04. > :46:08.decades and years and moving further forward? The honourable gentleman

:46:09. > :46:29.has a fantastic track record in talking abott trade

:46:30. > :46:32.and investment and making stre that we boost our sales of exports across

:46:33. > :46:35.the world. He makes an important point, I will come onto that in a

:46:36. > :46:39.moment in respect of which should be a to do. I want to refer to the UK's

:46:40. > :46:41.trade gap in November last xear it was ?3.2 billion. The trade deficit

:46:42. > :46:44.in goods was, and UK exports fell by 0.1%. The lowest growth ratd since

:46:45. > :46:47.the recession, and the only economy to see negative growth in exports.

:46:48. > :46:53.But it is not all doom and gloom. The north-east still has thd only

:46:54. > :46:58.consistent trade surplus in goods. But there is precious littld

:46:59. > :47:03.evidence of the march of thd makers, with modern manufacturing at the

:47:04. > :47:07.heart of a rebalanced econoly. This was reinforced by the ONS

:47:08. > :47:13.publication yesterday, which showed the UK manufacturing sector is now

:47:14. > :47:15.back in recession. I do fear we are sleepwalking back to the

:47:16. > :47:20.long-standing British model, prevalent over the past 40 xears or

:47:21. > :47:22.so of debt fuelled customer consumption, based upon an

:47:23. > :47:28.assumption of ever rising house prizes. That didn't work -- house

:47:29. > :47:35.prices, it didn't work in the past, never has, and is not sustahnable.

:47:36. > :47:41.As has been mentioned sever`l times, the government has set a target of

:47:42. > :47:45.?1 trillion of exports by 2020. I want the government to achidve that,

:47:46. > :47:48.it is good for firms, for the country, and we will see rising

:47:49. > :47:52.economic growth and broadenhng prosperity for everybody, btt it has

:47:53. > :47:57.to be said it is now more or less a given that the government whll fall

:47:58. > :48:00.spectacularly short of this target. Few expect it to be achieved,

:48:01. > :48:08.including the Secretary of State when he came before us in the select

:48:09. > :48:13.committee. The outlook forecast the cash value of exports to be ?64

:48:14. > :48:21.billion in 2020, 20 3% lower than its March 20 12th forecast. It is

:48:22. > :48:26.not acceptable for this house or the government or the country to simply

:48:27. > :48:30.shrug our shoulders and say it was a tough target, it was unachidvable

:48:31. > :48:34.but at least we had a go. I think we have to be more ambitious than that.

:48:35. > :48:38.It doesn't look on the basis of the evidence that government has even

:48:39. > :48:42.had a go. Strong export performance matters, which is why the sdlect

:48:43. > :48:46.committee has launched an enquiry into exports. We on the seldct

:48:47. > :48:50.committee, and I speak for `ll of us, a number of honourable

:48:51. > :48:53.colleagues in the chamber today who sit on the select committee, we all

:48:54. > :48:57.want to see that trillion pound target achieved but given the

:48:58. > :49:00.enormous shortfall forecast, we need to see a vigorous focus on changing

:49:01. > :49:05.course and in Barking on policies that result in improved performance,

:49:06. > :49:09.and I have not seen the govdrnment to demonstrate that step ch`nge

:49:10. > :49:13.Will the Minister outline what is being done differently to ensure we

:49:14. > :49:17.can get as close to that trhllion pound target as possible? What

:49:18. > :49:20.Bective -- active steps is the government taking to ensure that

:49:21. > :49:26.100,000 more companies are dxporting by 2020? I will respond to the

:49:27. > :49:29.honourable gentleman's intervention. Government does not control this,

:49:30. > :49:35.they can put in place a fralework, but what are firms doing? They might

:49:36. > :49:39.have a good domestic market where they feel comfortable, but how do we

:49:40. > :49:44.ensure that they can almost put their toe in the water of exports?

:49:45. > :49:47.How can they do that? Because they will have important concerns, in

:49:48. > :49:51.respect of don't know the regulations of that country, I don't

:49:52. > :49:56.know the laws. Will I get p`id? It is too much hassle, I will just

:49:57. > :50:01.stick to the domestic market, and we need to encourage that, which brings

:50:02. > :50:06.me to the role of UKTI. Would he accept it may be a challenghng time,

:50:07. > :50:11.but if the government knows and the O BR has indicated that it lay well

:50:12. > :50:16.be missing by 35% already, that there are early warning signs Fer

:50:17. > :50:21.years in that something needs to be done, and therefore action should

:50:22. > :50:23.not be... He is right. Given that we are going to fall spectacul`rly

:50:24. > :50:28.short of this target, what hs the government going to do, in terms of

:50:29. > :50:35.revising its policy towards trade and export to ensure that wd don't

:50:36. > :50:37.miss it by 35% Bubnjic as close to that trillion pound target `s

:50:38. > :50:40.possible? Does the government think UKTI is fit for purpose? Is it

:50:41. > :50:45.significantly corrective to work with British firms to identhfy and

:50:46. > :50:49.navigate foreign markets? Wd have seen some degree of turbulence, cuts

:50:50. > :50:56.in funding and destruction that the top of its management. What does the

:50:57. > :51:03.government think? Misses to answer that directly, there is a lot of

:51:04. > :51:07.reform that can be achieved, but with the honourable member for East

:51:08. > :51:11.Lothian, would he agree that it was wrong when he said the formdr CEO of

:51:12. > :51:19.UKTI had resigned because of the budget cuts? And would he agree with

:51:20. > :51:23.me that Mrs journeyman moved to the foreign Commonwealth office to take

:51:24. > :51:29.up a new office there. And then there was a new head of UKTH, and

:51:30. > :51:35.she was put in before there was any change in the funding. Would he also

:51:36. > :51:42.confirmed that UKTI's budget, the amount from days, in 2014 to 15 was

:51:43. > :51:51.264.1 million, and for the xear 15 to 16, 338 million pounds? The right

:51:52. > :51:54.Honourable Lady is very informed in terms of clarifying in terms of

:51:55. > :52:01.personnel changes, I think that is incredibly important. The honourable

:52:02. > :52:05.gentlemen, the member of thd Cotswold, said in terms of

:52:06. > :52:08.benchmarking UKTI against other comparable trade organisations

:52:09. > :52:12.around the world, are we getting value for money for the tax payer, I

:52:13. > :52:17.think it is an important thhng and something the select committee's

:52:18. > :52:22.enquiry can look at. This is not an academic exercise. In the f`st, it

:52:23. > :52:26.was so significant to have ` trade deficit that you could bring down a

:52:27. > :52:37.government with it. I am far too young to remember, and I wasn't born

:52:38. > :52:40.in the 1970 election, but I have read about it in history, I know

:52:41. > :52:41.some people might have even been in this chamber talking about ht.

:52:42. > :52:45.LAUGHTER That is how important trade

:52:46. > :52:49.performance to be in the past. It seems to have lost that in fact of

:52:50. > :52:53.the modern age but I think we should highlight the 14th of trade

:52:54. > :52:57.deficits. Poor performance hn overseas markets act as a rdal drag

:52:58. > :53:01.on competitiveness, producthvity and rising living standards fall. The

:53:02. > :53:05.government should focus mord attention on this and how it will

:53:06. > :53:08.change track to achieve its targets. I think the whole house would be

:53:09. > :53:09.behind the Minister and the government if she could demonstrate

:53:10. > :53:17.that. Thank you very much. It is `lways a

:53:18. > :53:27.great pleasure to follow thd chair of the select committee. He gave an

:53:28. > :53:33.interesting speech. It had ` fair balance, I think. Bigger and

:53:34. > :53:41.criticism and positive views, too. Somewhat in contrast with the speech

:53:42. > :53:48.by the opposition front bench, who in both content and deliverx

:53:49. > :53:56.reminded me somewhat of the Brezhnev era, with its catalogue of

:53:57. > :53:58.unremitting misery. But, hex, that is what...

:53:59. > :54:04.LAUGHTER I shall spare the blushes of the

:54:05. > :54:08.member of the chair of the select committee for business but H would

:54:09. > :54:13.just say that unremitting mhsery is clearly what you get with socialism,

:54:14. > :54:20.which is what this country # Why this country has conshstently

:54:21. > :54:26.rejected it. I would like to add to the positive views by making some

:54:27. > :54:30.comments of my own. I do thhs with a bit of humility. If we were to look

:54:31. > :54:36.at the very important point that are in this debate, and if I max make

:54:37. > :54:40.one more point about the Labour Party, we are debating important

:54:41. > :54:43.points raised today. The ch`ir of the business select committde must

:54:44. > :54:48.be absolutely embarrassed that he only has two Labour colleagtes in

:54:49. > :54:52.the chamber, including the whip who is supposed to get people in the

:54:53. > :54:57.chamber to take part in deb`tes so let's hope that as we progrdss to

:54:58. > :55:00.date we see a bit more commhtment from the Labour Party to thd

:55:01. > :55:05.entrepreneurs, small businesses and the wealth creators in our country.

:55:06. > :55:10.We do, though, have to understand Government policies and deb`te the

:55:11. > :55:15.issues we debated today in the context of a long period of time. I

:55:16. > :55:19.think the opening spokesman for the SNP made absolutely the right point,

:55:20. > :55:25.these are long-standing isstes, but we are now going into a perhod of

:55:26. > :55:32.overcapacity and production and the transition of some may major

:55:33. > :55:34.economies. That will have an impact on the ability of companies

:55:35. > :55:40.everywhere in the world to dxport, and also I think in this we will

:55:41. > :55:43.disagree, in -- an important part when the British governed h`s to

:55:44. > :55:49.start living within our means. Both of those things have been stmmed up

:55:50. > :55:52.quite rightly by the Chancellor in terms of seeking stability `nd

:55:53. > :55:57.security. These are important issues but on the issue of trade of

:55:58. > :55:59.innovation and productivity, the entrepreneurs and business people

:56:00. > :56:04.who think about that everyd`y, I think quite low down their list for

:56:05. > :56:09.solutions to those questions will be the phrase, I better go and ask my

:56:10. > :56:14.member of Parliament. Because the truth is that the innovations, the

:56:15. > :56:18.exports, and the trade that we do, will be done by those indivhduals

:56:19. > :56:31.and I am a strong believer hn freak market capitalism. I missed wrong --

:56:32. > :56:36.in free-market capitalism. One of the benefits of the election was the

:56:37. > :56:39.change in the minister for business, having someone who understands the

:56:40. > :56:44.motivation of the person who does not talk in the years, perh`ps not

:56:45. > :56:51.millions, but is taking that first step, that first risk to invest

:56:52. > :56:54.their own money, whether in Scotland, Bedford or other parts of

:56:55. > :56:58.the world. On the issue of statistics that we talked about we

:56:59. > :57:03.should just bear in mind, bdcause a number of members have talkdd about

:57:04. > :57:08.the persistent current accotnt in balance in the UK. It has bden there

:57:09. > :57:13.for so long, we haven't really fallen apart, have we? So there must

:57:14. > :57:21.be something about that that must be hidden or going OK, and secondly,

:57:22. > :57:25.statistics, statistics and... Remember trade statistics do not

:57:26. > :57:29.include value added, and ond of the important changes in global trade in

:57:30. > :57:34.the last 30 years has been the addition of value added in sectors

:57:35. > :57:40.and that may point a differdnt picture. A thoughtful contrhbution

:57:41. > :57:47.and most of what he says interesting and potentially accurate, btt even

:57:48. > :57:53.he, I am sure, will want to agree that it is worrying, when wd see

:57:54. > :57:57.contribution to GDP growth from exports continually marked down in

:57:58. > :58:05.forecast after forecast aftdr forecast, so where there max well be

:58:06. > :58:10.good, hidden things, the general trend is working against growth in

:58:11. > :58:13.the economy. I was just abott to agree entirely with what thd

:58:14. > :58:17.honourable member says, bec`use I thought it was talking about

:58:18. > :58:22.forecasting accuracy, a tophc upon which the SNP has a very good track

:58:23. > :58:29.record, but the issue, I thhnk, is fair... The issue on marking down

:58:30. > :58:35.does point to the frailty of setting targets, and I think it is ` fair

:58:36. > :58:39.criticism of all governments when it is easy to set targets and difficult

:58:40. > :58:45.to meet some of them. Let md turn to a couple of specific points in terms

:58:46. > :58:50.of what the Government can or should be digging. A number of honourable

:58:51. > :58:54.members talked about the Government's productivity plan, and

:58:55. > :58:59.is very broad nature. I must say, I see it more as an implement`tion

:59:00. > :59:04.plan. It is about how we implement things rather than the varidty of

:59:05. > :59:07.outcomes that have an overall impact on productivity. Secondly, the

:59:08. > :59:12.Government policy on the living wage will in itself provide a substantial

:59:13. > :59:17.increase in terms of Labour productivity. The living wage is in

:59:18. > :59:22.essence a 38% pay increase for the lowest paid workers in our country.

:59:23. > :59:27.I'm sure the Government havd factored in the impact that will

:59:28. > :59:34.have. I will give way in ond second. The implications for compar`bility.

:59:35. > :59:39.That very nature of a Government push to increase the wages for our

:59:40. > :59:43.hardest workers and lowest paid workers will have a positivd impact

:59:44. > :59:49.in a market economy in improving Labour productivity. Thank xou. On

:59:50. > :59:54.the matter of the living wage, I think it is important to cl`rify in

:59:55. > :59:59.this House as has been disctssed previously that the increasd in the

:00:00. > :00:04.national minimum wage by thd UK Government is not in fact the living

:00:05. > :00:09.wage that has been set by a number of independent bodies, and they must

:00:10. > :00:15.recognise that. She is facttally correct but it is like having a

:00:16. > :00:22.beautiful sunny day with soleone consistently wanting to put a cloud.

:00:23. > :00:25.This is a major and very significant change in the British econoly. All

:00:26. > :00:29.of us should be looking to the businesses who have to now pay that

:00:30. > :00:35.increase in wages to ensure they are able to do that without leading to

:00:36. > :00:39.unemployment, and if we can focus on that, then some of her other

:00:40. > :00:43.concerns about another level of this we can move to, I think we should do

:00:44. > :00:46.that. Let's join together, support what the Government has dond, make

:00:47. > :00:49.sure our businesses can deal with that, and then look to the next

:00:50. > :00:54.stage, because there is comlon agreement across this House that we

:00:55. > :00:59.have got things too far into disparity. Thirdly on productivity,

:01:00. > :01:02.the impact of the squeeze in public sector is in of itself identifying

:01:03. > :01:09.new ways to improve the productivity we do not -- and we do not talk

:01:10. > :01:14.enough about that impact on the economy. I would have been happier

:01:15. > :01:21.to take a larger reduction hn the department's budget, the Department

:01:22. > :01:23.for the, to get the deficit down. -- Department for business, but I

:01:24. > :01:29.understand that perhaps somdthing is being held back for later. Finally,

:01:30. > :01:40.the sharing economy, which `gain are committed is looking at, it is also

:01:41. > :01:44.a another positive or productivity will stop I was very pleased to hear

:01:45. > :01:50.the ministers say that she was looking at all would talk to the

:01:51. > :01:57.possibility in which new waxs in which tax policy could support

:01:58. > :02:01.equity in business, in parthcular enabling Isas to involve th`t, as

:02:02. > :02:04.proposed in the excellent high-growth small-business report

:02:05. > :02:12.launched by my honourable friend the member for Hartlepool. I took to the

:02:13. > :02:17.last Secretary of State the Bedford business burned, an idea whdre

:02:18. > :02:21.people who cared about a colmunity could put money into a fund to

:02:22. > :02:25.support the growth of busindsses in Bedford. We do not have the

:02:26. > :02:28.advantages of Milton Keynes, Cambridge or Northampton, whth large

:02:29. > :02:37.businesses or science parks. We have to grow our own businesses. A fund

:02:38. > :02:44.in which people in a communhty can invest in grooming businessds -

:02:45. > :02:48.running businesses in their community is an idea which H think

:02:49. > :02:55.can be expanded. Building on the success that Bedford has had in its

:02:56. > :02:58.fund, I am now taking forward the idea of a Bedford community business

:02:59. > :03:05.school, so working in conjunction with the school... This is ` series

:03:06. > :03:09.of courses where anyone in the committee interested in starting a

:03:10. > :03:13.business can have a series over a four-week period of learning about

:03:14. > :03:17.PR and marketing, how to do accountancy, finance from btsiness,

:03:18. > :03:22.and the idea of community btsiness schools is an idea that can be

:03:23. > :03:27.replicated across the country. Finally, I want to make somd points

:03:28. > :03:31.specifically about the business department. I have spoken already

:03:32. > :03:35.about the potential for further reductions in the budget for

:03:36. > :03:40.business and I know the minhster is a little more fun than I am of

:03:41. > :03:45.spending taxpayers' money -, a little more fond. She would always

:03:46. > :03:49.look for efficiency. One of the constant things we hear frol

:03:50. > :03:54.businesses, Government does a lot of stuff but where do I start? So

:03:55. > :03:58.decluttering and providing some focus to what the business

:03:59. > :04:04.department does, I think, would be a help. And may I make one spdcific

:04:05. > :04:10.suggestion? You are going to be able to log on and see your own tax

:04:11. > :04:14.accounts at HM C. Why is it not possible in the business department,

:04:15. > :04:18.using a tax identification number for a company for them to bd able to

:04:19. > :04:23.log on to the business department website and see in one placd all of

:04:24. > :04:28.the possible ideas that are suitable for their business and Taylor to the

:04:29. > :04:33.specific interests of their Anthony? You will know whether it is a large

:04:34. > :04:38.or small company. The sector it works in. We did a's technology we

:04:39. > :04:42.should be able to have upfront and quickly the measures the Government

:04:43. > :04:49.is taking that are there to support them. On deregulation, for le

:04:50. > :04:55.companies, the issue is not so much how much money is being savdd, it is

:04:56. > :05:00.how much time is being saved. Very grateful. I find this quite amusing

:05:01. > :05:06.because he is actually now encouraging me to spend taxpayers'

:05:07. > :05:09.money on a survey. It sounds like a great idea but would he agrde that

:05:10. > :05:14.this is actually something that the private sector could do even better,

:05:15. > :05:17.and in particular for small businesses, said there is

:05:18. > :05:24.effectively a one-stop shop website where they can go to and get also

:05:25. > :05:28.some access to all the various supports available to them? We do

:05:29. > :05:33.not need taxpayers' money to achieve that. The minister is being somewhat

:05:34. > :05:36.in genius in suggesting that I would want to spend taxpayers' money on

:05:37. > :05:44.this. The issue is not the loney, it is the access to the business

:05:45. > :05:51.department information. If the minister today is committing that

:05:52. > :05:53.the business department... She built force the business department to

:05:54. > :05:58.deal with private sector colpanies that want to create that portal of

:05:59. > :06:02.access and given free range to do that, I'm sure she will see private

:06:03. > :06:09.capital flooding into but it needs a commitment, it needs access, and

:06:10. > :06:16.that is how his vision, not mine. -- her decision, not mine. I should

:06:17. > :06:18.think so too. I will think `bout it because I think it has many

:06:19. > :06:23.attractions, I can understand there may be things about data protection

:06:24. > :06:29.but why don't we agreed to leet and have this discussion and sed what we

:06:30. > :06:32.can achieve? I'm looking forward to the minister coming back with a

:06:33. > :06:38.recommendation to the House and of course I would be happy to leet when

:06:39. > :06:42.she has that recommendation. People say that is unfair but the truth is

:06:43. > :06:47.I think there is a very poshtive initiative here. The one thhng we

:06:48. > :06:50.know about the right honour`ble member for Broxtowe is that when she

:06:51. > :06:55.sees there is a problem to be tackled, she will go for it, and

:06:56. > :07:01.heaven help you if you stand in her way, so I am just highlighthng to my

:07:02. > :07:04.friend, the minister, that there is an opportunity here. She is the

:07:05. > :07:08.right person to go for it and of course I will support her btt the

:07:09. > :07:12.most broadening highlighted by the motion from the SNP which I shall

:07:13. > :07:14.not be supporting is that they are coming forward with ideas on some of

:07:15. > :07:20.the most important issues to affect the well-being of our country. With

:07:21. > :07:27.all the contributions today, even though MPs may be low down on the

:07:28. > :07:29.list because of -- I think they have done a service to this Housd and I

:07:30. > :07:41.commend them for it. The last six years have seen an

:07:42. > :07:47.amazing deterioration of Brhtain's external trading position. The

:07:48. > :07:50.purpose is simply to get on the record how bad it is and to try to

:07:51. > :08:00.encourage the government to do something about it. Is that there

:08:01. > :08:08.has been a global depression, we are bound to lose some track and

:08:09. > :08:12.markets. In those six years, the point is, since this governlent came

:08:13. > :08:17.to power, world exports havd increased by 30%. The world market

:08:18. > :08:23.for sales has been growing extensively. If you lose market

:08:24. > :08:29.traction in that situation, then what will you do if the global

:08:30. > :08:38.economy does start to contr`ct overall. The normal situation when

:08:39. > :08:43.you get domestic recession hs is that your own industry is forced to

:08:44. > :08:47.start to export. So, strangdly enough, if you look at Europe, the

:08:48. > :08:52.core Eurozone countries that have suffered the worst from Eurozone

:08:53. > :08:57.crisis, they have actually done well in exporting, they had nowhdre else

:08:58. > :09:01.to go, they had to export. So, Spain, Italy have doubled their

:09:02. > :09:10.exports since 2010. Ireland, which had a catastrophic fiscal inclusion,

:09:11. > :09:15.is now selling more in exports than it has ever done in its history So

:09:16. > :09:22.the point that we are trying to make to the government, they are

:09:23. > :09:25.pretending everything is all right in the international sector, it

:09:26. > :09:29.belies the fact that in that six-year period when they should

:09:30. > :09:34.have been concentrating on turning round British exports and focusing

:09:35. > :09:37.on increasing our exports and creating a bigger market sh`re, they

:09:38. > :09:41.have failed totally. They kdep adding it off, keep thinking another

:09:42. > :09:45.plan and it will get better. In fact, if you look at the nulbers,

:09:46. > :09:49.the numbers have been repeated in a number of speeches. In 2014, the

:09:50. > :09:56.last year we have full figures, UK current account deficit camd to 5.1%

:09:57. > :10:03.of GDP. The honourable membdr for Bedford has mentioned that. I will

:10:04. > :10:07.reply to his query does it latter? If you run a current account

:10:08. > :10:10.deficit, you have to to fill it somehow, you have to either borrow

:10:11. > :10:14.foreign currency from other countries, or you have to sdll your

:10:15. > :10:18.assets into the ownership of other countries. So it is no surprise

:10:19. > :10:23.therefore that large chunks of British industry are now owned

:10:24. > :10:29.abroad, our property market, owned abroad. In fact, the governlent s

:10:30. > :10:34.obsession with trying to cure its own fiscal deficit has only resulted

:10:35. > :10:39.in transferring the deficit to somebody else. And everybodx knows

:10:40. > :10:45.that when you hit something like 5% or more of your GDP as your current

:10:46. > :10:49.account deficit, your warning signs are flashing up in market places all

:10:50. > :10:53.over the world, that is unsustainable. You run that the two,

:10:54. > :10:58.three, four years and you h`ve already got a quarter of yotr GDP in

:10:59. > :11:03.hock. You cannot continue to do that, yes in normal circumstances

:11:04. > :11:09.the UK has typically ran a current account deficit, but a tiny fraction

:11:10. > :11:13.of its GDP. 2014 was the worst performance, in terms of current

:11:14. > :11:17.account deficit for the UK hn peace time. That is the government the --

:11:18. > :11:26.problem the government is rdfusing to recognise.

:11:27. > :11:34.Total production data for the UK, if you strip out the important

:11:35. > :11:40.components, UK manufacturing output is now less than it was in value in

:11:41. > :11:52.2000. During that period, Gdrmany has managed to increase by 22%. I

:11:53. > :11:56.think it would be quite reasonable to say we are almost back whth a

:11:57. > :12:08.second wave of deindustrialhsation. A lot of that has come sincd 20 0.

:12:09. > :12:13.time, but just this period of the time, but just this

:12:14. > :12:18.last X years when there was not a national emergency, something could

:12:19. > :12:21.be done. The Chancellor did not focus on what he said he was going

:12:22. > :12:32.to focus on, which was to rdbalance the economy. He promised belatedly

:12:33. > :12:43.in 2012 that he would incre`se double exports. That was a

:12:44. > :12:47.ridiculous promise then. If they just lay that target site,

:12:48. > :12:52.concentrate on the practical nuts and bolts of our exports, then we

:12:53. > :12:55.might move forward. As long as the Chancellor comes up with thd fancy

:12:56. > :13:06.proposals and doesn't delivdr, then we on the opposition benches can

:13:07. > :13:08.reasonably say you are not serious? Whatnots and bolts does he think are

:13:09. > :13:14.missing from the government's package at the moment? It is long on

:13:15. > :13:18.rhetoric, I understand that, about the shape of our export performance,

:13:19. > :13:22.but the government has done a huge amount to support those exporters.

:13:23. > :13:29.We have been languishing in the depths of a Euro wide recession I

:13:30. > :13:33.take your general point, and I don't gainsay a number of the

:13:34. > :13:38.micro-decisions the governmdnt has taken, but you are not seeing the

:13:39. > :13:42.wood for the trees. Let's sde why it is that we cannot get more

:13:43. > :13:46.investment into the manufacturing industry, why it is that thd whole

:13:47. > :13:51.tenure of the economy is anti-export. It goes to the heart of

:13:52. > :13:58.how the Chancellor has concdived his role, he tells us that we h`ve

:13:59. > :14:03.growth. But where did the growth come from? Where has it comd from in

:14:04. > :14:06.the last six years? It has come from pumping up consumption, not from

:14:07. > :14:12.investing in investment, not from selling abroad. It is from pumping

:14:13. > :14:16.up domestic consumption, and where did the extra consumption come from?

:14:17. > :14:20.Did it come from wages, there has been some wage growth in thd last

:14:21. > :14:23.few years, but if you look `t the most recent statistics, pay growth

:14:24. > :14:27.is now slumped to its lowest rate in two years, so it is not comhng from

:14:28. > :14:33.pay. It is coming from borrowing. Look at the latest consumer

:14:34. > :14:36.borrowing figures. Consumer borrowing on credit cards and

:14:37. > :14:42.overdrafts is now expanding at its fastest rate since the financial

:14:43. > :14:48.crisis. Unsecured consumer credit was up by 8.3% in November.

:14:49. > :14:52.Consumers borrow an extra 1.5 billion unsecured in Novembdr alone

:14:53. > :14:56.in the run-up to Christmas. In a period where we are facing the

:14:57. > :15:01.potential of rising interest rates, we have merely returned to

:15:02. > :15:06.unsustainable consumer debt in order to carry growth forward into 20 6.

:15:07. > :15:11.Yes, there has been growth, but the growth has come from borrowhng. All

:15:12. > :15:14.the government has done is to transfer fiscal deficit frol public

:15:15. > :15:20.sector to private individuals who are even less able to bear ht. I

:15:21. > :15:23.understand the point he is trying to make but I think he is making it too

:15:24. > :15:26.strongly to say that governlent policy is anti-export. That is not

:15:27. > :15:31.the case. What the government has been trying to do is navigate its

:15:32. > :15:34.way through very difficult dconomic situation, as I'm sure the

:15:35. > :15:37.honourable member for Dunded East would agree. That is not thd

:15:38. > :15:43.intention and I think he ovdrstates his case too far. I am glad we have

:15:44. > :15:49.moved on from me being wrong to me overstating the case, we might be

:15:50. > :15:54.making some progress! To repeat the point is in the depth of a crisis

:15:55. > :15:59.like this, the way you move from unsafe bailable bet is to move to

:16:00. > :16:02.export led growth. That is ,- from unsustainable debt. That is what

:16:03. > :16:06.some of the key countries who suffered worst from the recdssion,

:16:07. > :16:11.from the Euro crisis, they have done that, and we have not even begun to

:16:12. > :16:14.do it. If we can only do ond thing today, it is to persuade thd

:16:15. > :16:18.government benches that that is the case, then we might have made

:16:19. > :16:22.progress. He makes some intdresting points in his speech, but whll he

:16:23. > :16:25.recognise that those countrhes have had far more severe fiscal

:16:26. > :16:30.consolidation is that we have had in Britain? Indeed I do, that was my

:16:31. > :16:35.point, but they have still lanaged, in the case of Italy and Sp`in and

:16:36. > :16:38.Ireland, to double their ex,ports. One thing the Chancellor sahd he

:16:39. > :16:43.wanted to do but hasn't even begun to do. Let me just move on briefly.

:16:44. > :16:49.Why hasn't the Chancellor bden able to rebalance the economy? The truth

:16:50. > :16:53.is, under this Chancellor, previous chancellors began it, but

:16:54. > :16:57.particularly under this Chancellor, Britain has a taxation systdm that

:16:58. > :17:01.actually favours investment in physical property rather th`n

:17:02. > :17:04.long-term investment in manufacturing, and it has continued

:17:05. > :17:09.to have the banking and fin`ncial system that actually prioritises

:17:10. > :17:12.common use an extreme word, gambling, gambling of money, foreign

:17:13. > :17:19.exchange markets, rather th`n supporting manufacturing and

:17:20. > :17:26.innovation. One example, Brhtain's premier engineering company is

:17:27. > :17:29.Rolls-Royce. A company that we needed to rely on as our fl`gship if

:17:30. > :17:35.we were going to rebalance the economy towards manufacturing and

:17:36. > :17:42.exports. Let's look at the tragic history of Rolls-Royce in the last

:17:43. > :17:49.two years. Just over a year ago Rolls-Royce sold off its gas turbine

:17:50. > :17:59.business to Siemons. The thhrd largest export industry in the UK --

:18:00. > :18:03.sold it after two Siemens. What to do with ?1 billion? Did Rolls-Royce

:18:04. > :18:08.invested in a new wave of innovation, did it invest in new

:18:09. > :18:12.technology, do more research? No, the nature of the fiscal system was

:18:13. > :18:20.that it was easier for Rolls-Royce management to use that billhon

:18:21. > :18:24.pounds to buy back its shards. And that is reinforced by the ctts we

:18:25. > :18:28.have had in corporation tax. I am not in favour of raising corporation

:18:29. > :18:32.tax, I think fiscal incentives are good for industry, but the

:18:33. > :18:37.Chancellor continued to cut corporation tax, when he kndw that

:18:38. > :18:43.most of the money would acttally go into share by own products.

:18:44. > :18:46.Rolls-Royce by buying back hts own shares, it share price is something

:18:47. > :18:53.like ?10 at the early part of last year, where is the share prhce now?

:18:54. > :18:58.Half that. Our premier engineering company is now in a disastrous

:18:59. > :19:02.emotional state. In fact, that halving of the share price leans

:19:03. > :19:10.that the billion pounds it got from selling off its key turbine business

:19:11. > :19:15.to Siemens has been wiped ott. Meanwhile, the market has c`ught up

:19:16. > :19:19.on Rolls-Royce. Its key salds for engines, large wide-bodied jets

:19:20. > :19:26.those sales have started drxing up, the market has moved on to new jet

:19:27. > :19:29.engines for narrow bodied jdts. The Americans are cleaning up, because

:19:30. > :19:33.the Americans had the product ready to go into that market. So

:19:34. > :19:37.Rolls-Royce is now in seriots trouble, in fact there was now talk

:19:38. > :19:42.in the city of it being takdn over, possibly by... Would be honourable

:19:43. > :19:46.gentleman agree with me it hs very important in this house that we do

:19:47. > :19:50.not talk down one of the most outstanding British success stories,

:19:51. > :19:55.and given that he has already given this house incorrect inform`tion

:19:56. > :19:59.about the moving on the head of the UKTI, would he please agree with me,

:20:00. > :20:02.it is very important that the information he continues to put in

:20:03. > :20:07.this house is accurate, bec`use it hasn't been so far, and would he

:20:08. > :20:12.agreed to withdraw his commdnts about Dominic Journey and hhs moving

:20:13. > :20:21.on into the FCA? I will continue with what I was saying, Minhster, I

:20:22. > :20:24.am not talking down on anyone. I am trying to get the government to

:20:25. > :20:33.admit there is something seriously wrong, know I won't, I will

:20:34. > :20:36.continue. Madam Speaker, is it not important that all members, when

:20:37. > :20:42.they make a mistake, correct that mistake so that the record can show

:20:43. > :20:45.when they have given an inaccurate account of this house, especially

:20:46. > :20:50.about someone who doesn't h`ve the ability to speak in this pl`ce, and

:20:51. > :20:55.that if somebody else gives a contrary view that is based on sound

:20:56. > :20:59.information, it is beholden on the member to accept, because wd all

:21:00. > :21:06.make mistakes, if you have lade a mistake, just accept it? I think the

:21:07. > :21:09.honour all lady knows it is entirely up to the member who has made the

:21:10. > :21:15.statement whether or not he wishes to withdraw it or not, or to correct

:21:16. > :21:20.the record, but the minister has herself now twice corrected the

:21:21. > :21:24.record, so we shall move on. Thank you, Madam Deputy Speaker, H am

:21:25. > :21:28.always willing to bow to thd chair if ever I am found to have lade

:21:29. > :21:34.erroneous remarks of the ch`mber, I will always withdraw them and we can

:21:35. > :21:38.come back to that. But of course the Minister has intervened bec`use she

:21:39. > :21:42.wishes to continue to say that those of us who raise serious points about

:21:43. > :21:45.our poor economic performance are talking down British industry. Far

:21:46. > :21:50.from it, I am passionate about British industry, I want industry to

:21:51. > :21:56.grow. It is the fact the government is not doing its job on this that is

:21:57. > :21:59.the problem. I have profound respect for Rolls-Royce and the history of

:22:00. > :22:04.Rolls-Royce, for what it has contributed to this country. During

:22:05. > :22:08.World War II, Rolls-Royce M`in engineering factory was in Glasgow.

:22:09. > :22:13.The engines that powered thd Spitfires that saved Western Europe

:22:14. > :22:20.and democracy in 1940, the dngines were being produced in Glasgow by

:22:21. > :22:23.Rolls-Royce. I am second to none in my admiration of that company and

:22:24. > :22:26.its engineering history. I `m worried, though, that we ard now

:22:27. > :22:31.talking about that company being taken over by American aerospace

:22:32. > :22:36.companies because of situathon it is in. I am now worried, and it has

:22:37. > :22:39.been a matter of press commdnt in recent weeks, that the government

:22:40. > :22:45.may have to consider taking over parts of Rolls-Royce, its ntclear

:22:46. > :22:49.engineering division, if anxthing goes wrong and Rolls-Royce were God

:22:50. > :22:54.forbid, to be taken over by a foreign company. Then discovered

:22:55. > :22:58.that would be talking about nationalising bits of Rolls,Royce. I

:22:59. > :23:04.think that is quite a seriots pass to have come to.

:23:05. > :23:13.I thank the honourable gentleman for giving way. And important point

:23:14. > :23:18.about hostile foreign takeovers one of the most important ones recently

:23:19. > :23:22.was the attempt to take over AstraZeneca. I am sure that the

:23:23. > :23:26.honourable gentleman would `gree that that case concluded in the

:23:27. > :23:31.right way, protecting one of the great British assets and en`bling it

:23:32. > :23:36.to continue its long-term strategies of investment in innovation and

:23:37. > :23:42.technology. Would the honourable gentleman agree that this should be

:23:43. > :23:48.seen as a case for perhaps ` reform of the Companies Act? So we see far

:23:49. > :23:54.more long term is being built into the UK's corporate culture, so that

:23:55. > :23:56.we move to investing in resdarch and develop mud and innovation `nd

:23:57. > :24:02.skills because if we don't will never change to a more sust`inable

:24:03. > :24:06.business model. I couldn't `gree more with my honourable fridnd. One

:24:07. > :24:13.of the issues that has led to this short term outlook in the l`st 0-30

:24:14. > :24:17.years is the fact that comp`nies are not in a position to think long term

:24:18. > :24:21.themselves because the way that the City of London runs is that their

:24:22. > :24:26.shares are always in play. We need some form of company reform that

:24:27. > :24:29.allows investment to happen without it being subject to shares being

:24:30. > :24:34.shorted or issues like I've just mentioned with Rolls-Royce `nd other

:24:35. > :24:41.companies, whether money should have gone into real investment. @n

:24:42. > :24:44.interesting issue and I think the honourable member is making an

:24:45. > :24:48.important point about long-term investment. It is already on the

:24:49. > :24:52.agenda, not least to the Bank of England with the chief economist

:24:53. > :24:56.raised a point about long-tdrm investment and contract law and the

:24:57. > :25:00.need to encourage firms not just to think about shareholding but about

:25:01. > :25:04.long-term investment. Does he agree that that is the kind of thhng we

:25:05. > :25:08.need to see to encourage sm`ller firms to become bigger firms,

:25:09. > :25:15.especially in the nature of the kind of firm we need to see in the

:25:16. > :25:19.manufacturing sector? Indeed, Madam Deputy Speaker, I could not agree

:25:20. > :25:25.more that what is missing in the UK industrial structure is medhum-sized

:25:26. > :25:31.companies which export and create a value chain. Indeed we have a small

:25:32. > :25:34.number of very large companhes and a large number of very small

:25:35. > :25:42.companies. One reason we haven't been able to do that is that

:25:43. > :25:46.companies, when they grow to a certain extent need to sell out

:25:47. > :25:53.usually to foreign ownership, to raise capital. This brings le to

:25:54. > :25:57.another issue. I will not bd longer, Madam Deputy Speaker. It coles to an

:25:58. > :26:03.issue that was raised by my honourable friend from Bedford when

:26:04. > :26:10.he referred to the current `ccount deficit. Normally we have bden able

:26:11. > :26:17.to fill this deficit on a slaller basis by the fact that financial

:26:18. > :26:20.remits from acid is owned bx British companies or citizens abroad, the

:26:21. > :26:28.money coming back has outwehghed the money going back out of the UK from

:26:29. > :26:34.assets owned by foreign concerns. What has changed since 2010,

:26:35. > :26:39.dramatically, under the auspices of this government, is the bal`nce

:26:40. > :26:45.between the ownership of assets in the UK and the remit of funds abroad

:26:46. > :26:53.this is the ownership of UK assets owned abroad and money coming back

:26:54. > :26:57.here. -- versus the ownershhp. The total value of British overseas

:26:58. > :27:04.assets since 2010 has slippdd to about ?1.2 trillion. In that period

:27:05. > :27:08.the value of UK assets held by foreigners has soared from 0

:27:09. > :27:15.trillion to ?1.4 trillion. Hn other words we are now... What we own

:27:16. > :27:21.abroad is less than what is owned to you. In the balance of things the

:27:22. > :27:26.net outflow of money will mdan that we cannot cover our current account

:27:27. > :27:39.deficit. The last year for which we have figures, 2014, there w`s a bare

:27:40. > :27:44.surplus of ?2 billion in terms of a positive FDI coming in opposed to

:27:45. > :27:49.money going out. That I think has led the Chancellor into dangerous

:27:50. > :27:56.grounds. This is where we lhnk another aspect of financial wheeling

:27:57. > :28:04.and dealing in the UK versus the need for manufacturing investment.

:28:05. > :28:07.The fundamental way we have been covering our current account deficit

:28:08. > :28:12.recently is by the huge inflow of money buying up property in the UK,

:28:13. > :28:17.especially property in the City Wealthy investors have acquhred

:28:18. > :28:21.about ?100 billion worth of property in London using blind oversdas

:28:22. > :28:26.companies in the last six ydars Since 2008 that have been around

:28:27. > :28:31.28,000 individual purchases of homes, buildings and land in the

:28:32. > :28:35.capital by corporate structtres registered in external tax havens.

:28:36. > :28:41.One in ten properties in Westminster is owned by an offshore firl. We are

:28:42. > :28:46.funding our current account deficit by allowing a vast influx of cash

:28:47. > :28:50.from sure companies coming hn buying property here and we do not know

:28:51. > :28:55.that ownership, in many casds, is where that money was resulthng from.

:28:56. > :28:58.The Chancellor has not taken this into an art form, finding w`ys to

:28:59. > :29:05.get money into cover the current account deficit. This is partly to

:29:06. > :29:15.do with his new plan towards China. The Chancellor's cunning pl`n.. He

:29:16. > :29:19.makes a good point about inward investment and foreign capital

:29:20. > :29:22.acquiring assets. Is he proposing a form of capital control? Anx

:29:23. > :29:28.suggestions to meet this problem identified? I might start bx

:29:29. > :29:33.ensuring that anyone who buxs property in the UK, we know who the

:29:34. > :29:37.beneficial owner is. That mhght resolve some of the issues because

:29:38. > :29:41.we might find some of the money coming in suddenly does not come

:29:42. > :29:45.here any more because peopld do not reveal the source. The Chancellor's

:29:46. > :29:50.elitist wheeze is to open the door to Chinese cash. China has no track

:29:51. > :29:53.record in building nuclear power plants get the Chancellor h`s

:29:54. > :29:58.offered massive subsidies in the next 20 years in the hope of

:29:59. > :30:03.encouraging the Chinese to hnvest in nuclear power. So much for

:30:04. > :30:09.encouraging British manufacturing. I think this plan has everythhng to do

:30:10. > :30:11.with covering Britain's dis`strous current-account deficit. Because

:30:12. > :30:16.Chinese money coming in, foreign currency will stake and will cover

:30:17. > :30:21.the deficit. Sadly China is already eating into its capital resdrves in

:30:22. > :30:25.a bid to shore up its own ctrrency and stop its rocky banks from

:30:26. > :30:30.imploding. So I think that what we are looking at, in the next five or

:30:31. > :30:33.six years, is that we will run out of foreign currency to fill the

:30:34. > :30:38.trade gap and therefore there will be big implications for intdrest

:30:39. > :30:43.rates, big implications for our trade surplus. Madam Deputy Speaker,

:30:44. > :30:47.what we need is an industri`l policy which our colleagues have mdntioned

:30:48. > :30:54.to revive domestic money factor Instead the Chancellor has slashed

:30:55. > :31:03.the budget for innovation skills, in the autumn budget, and, the actual

:31:04. > :31:07.budget for UK trade and indtstry is being cut by ?42 million ovdr the

:31:08. > :31:12.next few yes. Yes, it is gohng up marginally this year, and yds, she

:31:13. > :31:17.is selective in choosing whhch years of looking at the budget yot can

:31:18. > :31:21.pretend there is an increasd yet after four years of funding, as

:31:22. > :31:26.announced by the Chancellor in the Autumn Statement, the UK TI budget

:31:27. > :31:29.will go down by ?42 million. How can this government pretend to support

:31:30. > :31:34.exports, pretend to double dxports when it is cutting the budgdt of the

:31:35. > :31:41.agency that we rely on to lhaise with other companies and increase

:31:42. > :31:44.exports. The Chancellor prolised to double exports. He's made shmilar

:31:45. > :31:52.promises about limiting the annual deficit and did not keep thdm. This

:31:53. > :31:58.Chancellor hasn't any clues. If he had come he would have to ilport

:31:59. > :32:03.them! Before the next speakdr we have 13 more members waiting to

:32:04. > :32:07.catch my eye. That works out at between ten and 12 minutes per

:32:08. > :32:13.speaker. If we can keep within those informal limits I would be grateful.

:32:14. > :32:17.I'm happy to announce that H will not speak for 24 when it's Like the

:32:18. > :32:20.previous speaker although I'm happy to follow the Member for East

:32:21. > :32:26.Lothian, he gave a very intdresting speech. Madam Debord is bigger, you

:32:27. > :32:31.will be pleased that I did not agree with everything he said. Sole

:32:32. > :32:35.aspects of his speech, thought, were wrong. The points were made in the

:32:36. > :32:40.right spirit although I think some of his conclusions were wrong.

:32:41. > :32:46.Initially I want to register my own interest in this debate. My

:32:47. > :32:51.constituency of Spelthorne hs a hub of local business, private

:32:52. > :32:56.enterprise. Staines was the number one business start-up, the number

:32:57. > :32:59.one area for business start,ups next. This is a tradition and record

:33:00. > :33:06.of achievement that we wish to continue. A number of peopld in the

:33:07. > :33:13.course of this very interesting and important debate have spoken about

:33:14. > :33:21.the need for an industrial strategy. Without, I feel, actually spelling

:33:22. > :33:26.out the details of this running out what such as. You would be. It is

:33:27. > :33:32.true that we could be doing better with exports. It is certainly true

:33:33. > :33:39.that we could try to increase our productivity. These general remarks

:33:40. > :33:47.come in the course of this debate, have not really been fleshed out by

:33:48. > :33:52.concrete proposals. One excdption was my honourable friend, the Member

:33:53. > :33:56.for The Cotswolds, came up with some concrete suggestions about the

:33:57. > :34:05.government's role in UK trade and industry and its action. He made

:34:06. > :34:10.some interesting points in that regard. What I wish to focus the

:34:11. > :34:14.attention of the House on is the general context. The Member for East

:34:15. > :34:20.Lothian mentioned the fact that across the Eurozone, their current

:34:21. > :34:28.account figures have actually improved. And he suggested that this

:34:29. > :34:33.was largely a consequence of increased exports. But thosd of us

:34:34. > :34:37.who have followed what went on in the Eurozone will know that they had

:34:38. > :34:43.drastic fiscal consolidation is in the course of which, they totally

:34:44. > :34:49.killed off domestic demand. They tipped the economies into rdcession.

:34:50. > :34:56.And everyone knows that if `n economy is in recession, imports

:34:57. > :35:00.will fall quite considerablx. Yes? I am grateful to my honourabld friend

:35:01. > :35:05.for giving way. We have 2 mhllion extra jobs created in this country,

:35:06. > :35:11.whereas elsewhere in the EU, as it refers to, we have a record level of

:35:12. > :35:18.youth unemployment. Absolutdly right, I take that, in the spirit in

:35:19. > :35:23.which it was mad. He is right. It is not the two mentioned that friends

:35:24. > :35:27.in the Eurozone have mentioned where we have failed. Their success in

:35:28. > :35:33.terms of the current account figures is actually a measure of fahlure.

:35:34. > :35:37.Domestic demand has been colpletely crushed by a very, very tight fiscal

:35:38. > :35:42.consolidation series of measures which we have avoided, desphte the

:35:43. > :35:44.political rhetoric we have `voided many of the severe fiscal

:35:45. > :35:52.consolidation measures that they have experienced. I accept that we

:35:53. > :35:57.have suffered partly becausd of that insofar as exports to Europd have

:35:58. > :36:00.fallen, while a growing economy here has sacked in imports from the

:36:01. > :36:06.companies were domestic dem`nd has been suppressed. The honour`ble

:36:07. > :36:09.gentleman makes an excellent point. Clearly if domestic demand hn these

:36:10. > :36:20.countries has been sharply contracting, then their ability to

:36:21. > :36:23.buy our exports is commensurable in diminished -- comments Robrddo

:36:24. > :36:28.managed and makes life harddr for our exporters. There's no qtestion

:36:29. > :36:34.about it. What I would say with respect to dish exports, with

:36:35. > :36:39.respect to our trade missions, I would say the most fundamental thing

:36:40. > :36:45.that any export or manufacttring concern would look too, is some

:36:46. > :36:52.degree of economic stabilitx in the home market. Some degree of

:36:53. > :36:57.visibility, sick some degred of responsibility on the part of the

:36:58. > :37:02.government to ensure some economic stability, that our problems are

:37:03. > :37:06.being dealt with with respect to fiscal consolidation deficits,

:37:07. > :37:09.things of that nature, and hf you speak to businesses as I do in my

:37:10. > :37:15.constituency and I am sure that many members of the House do in theirs,

:37:16. > :37:23.they will say that broadly, the government's policy, although not

:37:24. > :37:28.perfect, has been conducive, to a degree of economic stabilitx. The

:37:29. > :37:32.has done with respect to apprenticeships, with respect to the

:37:33. > :37:37.significant reduction in corporation tax, these sorts of policies have

:37:38. > :37:43.made life easier, or more attractive, for exporters and for

:37:44. > :37:48.business people in general. And so it is very difficult, when xou

:37:49. > :37:53.tackle a debate of this nattre, to divorce this issue of trade, this

:37:54. > :37:57.issue of the current account, of innovation. It's very difficult to

:37:58. > :38:02.divorce those issues from the general economic management which

:38:03. > :38:07.the government, or the general economic strategy that the

:38:08. > :38:09.government is pursuing. And on that ground, and question, it is clear

:38:10. > :38:15.that although there are manx challenges ahead, a large sdction of

:38:16. > :38:19.people feel comfortable that the government is taking the right

:38:20. > :38:23.approach to the economic management of this country. And I think that is

:38:24. > :38:28.a very, very important point to make right at the beginning.

:38:29. > :38:35.The other thing that has cole across, that I have noticed in this

:38:36. > :38:40.particular debate, is the f`ct that we talk about exports, and we talk

:38:41. > :38:46.about trade deficits and all of these quite abstract concepts as

:38:47. > :38:53.though we were living in thd 19 0s, or, I would say, earlier. Wd are

:38:54. > :38:57.talking about these metrics, this language evolved in a period when

:38:58. > :39:02.Britain was the industrial heart and motor of the world, the factory of

:39:03. > :39:10.the world, very much a Victorian, if you like model of the econoly,

:39:11. > :39:14.something which arguably persisted until 1939. But if we look `t the

:39:15. > :39:23.economy in 2016, it is diffhcult to disaggregate exporting goods from

:39:24. > :39:29.exports in services, from hxbrid types of exporting products, which

:39:30. > :39:34.are manufacturing but do have a degree of service element to them. I

:39:35. > :39:37.think a lot of this languagd, I think the honourable member for

:39:38. > :39:42.Hartlepool was referring to the trade deficits in the 60s, which he,

:39:43. > :39:49.in his recollection or in hhs reading, brought governments down.

:39:50. > :39:53.Of course, you know, every day, people looked at the trade figures

:39:54. > :39:56.in the 1960s. That was the big number. But the model of thd economy

:39:57. > :40:05.today is completely different to what was the case in 1957 or 19 0.

:40:06. > :40:09.-- 19 67. I think a lot of our debates on this particular subject

:40:10. > :40:16.are very much couched in thd language, very much reflect the

:40:17. > :40:22.concerns of a bygone era, and era which now is... It has been 50

:40:23. > :40:25.years, nearly, since the 1967 devaluation. It's crazy to conduct

:40:26. > :40:30.this debate as though nothing has happened in the last 50 years. When

:40:31. > :40:36.we look at the British economy in terms of its, in terms of the

:40:37. > :40:39.distribution and how wealth is created, the role of exports and

:40:40. > :40:44.manufacturing, it is quite true that these things, certainly in the case

:40:45. > :40:48.of manufacturing, have diminished. But I would argue that a lot of that

:40:49. > :40:51.is a function of the evolving nature of the British economy. If xou were

:40:52. > :40:54.to look at the economic history of Britain, we have gone through a lot

:40:55. > :41:03.of different phases of economic life. The phase at which we

:41:04. > :41:10.manufactured huge amounts of secondary, in terms of, indtstry,

:41:11. > :41:14.that has gone, sadly. I mean, I was looking out, someone mentioned the

:41:15. > :41:18.steel industry and said how terrible it was that the government had not

:41:19. > :41:23.subsidised and protected thd steel industry. If you look at thd actual

:41:24. > :41:28.steel industry itself, a man called Wolfgang Edder is the head of the

:41:29. > :41:32.International steel Council, and he has said that in terms of c`pacity

:41:33. > :41:37.in Europe, there is something like 200 million tonnes and for that to

:41:38. > :41:41.be sustainable, capacity in Europe, he is saying it should be h`lved.

:41:42. > :41:50.There's overcapacity in European steel makers. This idea that we can

:41:51. > :41:56.somehow subsidised things endlessly, and on an unproductive basis, is to

:41:57. > :42:00.be wrong. I thank the honourable gentleman for giving way. I don t

:42:01. > :42:04.think anyone is asking for subsidies. I think what the steel

:42:05. > :42:09.industry in the UK is asking for is a level playing field. What we see

:42:10. > :42:13.now is the massive dumping of Chinese steel, which is indded

:42:14. > :42:19.heavily subsidised, 70% of Chinese steelmakers are state-owned,

:42:20. > :42:22.dragging down the price of steel, which is crippling the Brithsh steel

:42:23. > :42:29.industry. I really don't thhnk this is about subsidies. This is about

:42:30. > :42:34.smart regulation, about pro`ctive intervention by government, taking

:42:35. > :42:38.action, answering questions afterwards. And also, I would like

:42:39. > :42:42.to seek reassurances that the government will not be supporting

:42:43. > :42:45.China's application to have market economy status, which will

:42:46. > :42:51.completely undermine any attempt on anti-dumping. This is about

:42:52. > :42:54.proactive regulation and intervention, not subsidy. H accept

:42:55. > :42:57.the honourable gentleman's intervention and I think he makes a

:42:58. > :43:02.good point with respect to the practices of China and their export

:43:03. > :43:05.practices. But the general point I wanted to make what the stedl

:43:06. > :43:10.industry itself believes, and it is not a British problem but a European

:43:11. > :43:13.one, it says that in terms of the structure of the industry, there is

:43:14. > :43:17.overcapacity in Europe. If that is the case, there's no governlent

:43:18. > :43:23.action in the world, franklx, that is going to push the water tphill,

:43:24. > :43:29.to mitigate against that broad situation. I digress a bit from the

:43:30. > :43:33.main point I was trying to lake I think this debate has been very