Dame Harriett Baldwin

I am delighted to respond on behalf of the Conservatives, who have always championed British businesses. We believe very much in the ingenuity of our entrepreneurs, the skill of our engineers and the global reputation of our exporters. The Bill amends Acts dating from 1982 and 1991, and we believe that, time and again, our companies have shown that, with the right conditions, they can compete and win on the world stage. Updating those Acts will ensure that the Government have the tools to support our industries and exporters. We should take pride in the extraordinary success of British exporters. The latest UK Export Finance annual report shows the scale of their achievements. Rolls-Royce and Airbus have together secured guarantees worth £165 million for supplying Ethiopian Airlines, £102 million for Avolon in Ireland and £66 million for Emirates in Dubai. That gives the House a flavour of the kind of deals supported through this finance. Defence exports remain significant too, with BAE Systems and MBDA receiving over £120 million per major contract, including support for the very important air defence systems in Poland. These figures demonstrate the global demand for British engineering, aerospace and defence expertise. However, as the Minister pointed out in his opening remarks, beyond the headline numbers, 80% of firms supported by UK Export Finance are small and medium-sized businesses, which often supply the more global contracts. With their innovation and resilience, they are the backbone of our export economy, and they also deserve support and visibility. The UK has a leading export and finance sector, and it can usually cover the commercial risks involved in exports, so UK export finance should be deployed only when no private sector solution is available. Generally, we are in favour of reducing subsidies, rather than increasing them, so we do not support additional taxpayer funding for the industrial strategy until the Government get the fundamentals of energy prices, tax and regulation right. Without tackling those basics, no amount of subsidy will ever deliver the competitiveness that our businesses need. I have a few questions for the Minister. Can he assure the House that UK Export Finance will continue to be deployed only where no private sector funding can be secured? If this Bill is to meet its aims, export assistance must be spread across the regions. We saw from the autumn “Santander Trade Barometer” that three quarters of businesses that want targeted export support are beyond our capital. Optimism is high in sectors such as technology and media, but firms in Scotland and energy, construction and engineering companies are much more cautious. So there are regional disparities in economic outlook that the Government must address. UK Export Finance is there to guarantee exports when the private sector cannot, and we would expect it to focus on countries where credit risks are higher. What new markets is the funding likely to be used for, and will some of the additional capacity be reserved for small and medium-sized businesses? Can the Minister reassure the House that none of this finance would ever be used to support exports to countries that could allow such goods to get around the sanctions on Russia, and that they are not used to export to any country that would wish us harm? Can he also reassure the House that, as the Foreign Office undergoes a restructuring, our fine network of embassies and high commissions are made aware of this so that we make the most of this export finance opportunity and have the right teams in place to support UK plc? Those are my opening questions for the Minister.