Scottish Business Overseas

Oral Answers to Questions — Scotland – in the House of Commons at 11:30 am on 9 January 2013.

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Photo of Sir David Amess Sir David Amess Conservative, Southend West 11:30, 9 January 2013

What steps Ministers in his Department are taking to promote Scottish business overseas.

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

The Government have taken a range of actions to promote Scottish businesses overseas, including the appointment of Brian Wilson as a UK business ambassador. I have also held recent discussions with the Canadian Trade Minister and with business leaders in Canada and the USA.

Photo of Sir David Amess Sir David Amess Conservative, Southend West

How many Scottish business leaders has the Secretary of State met who believe that the Scottish trading position will be improved if Scotland leaves the United Kingdom?

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

No Scottish business leader has ever put that point to me, possibly because they recognise the strength of Scotland’s being in the United Kingdom and the fact that there are 162 UK Trade & Investment offices backed up by 270 consulates across the world.

Photo of Angus Robertson Angus Robertson Shadow SNP Spokesperson (Defence), Shadow SNP Spokesperson (Foreign and Commonwealth Office), Shadow SNP Westminster Group Leader

Last year, the Scotch whisky industry was worth more than £4.2 billion; it is one of Scotland’s and the UK’s biggest exporting industries. Can the Secretary of State confirm that the UK Government charge for its promotion internationally? How much do they charge and why?

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

I join the hon. Gentleman in welcoming the success of the Scotch whisky industry, which is a huge part of the overall success of Scotland’s food and drink sector and goes alongside other significant economic areas such as financial services, energy and the like, which are so critical to Scotland’s exporting potential. I do not want to put any of that at risk; that is why I think that Scotland’s being part of an international network of embassies, consulates and UKTI offices is the best way forward.

Photo of Angus Robertson Angus Robertson Shadow SNP Spokesperson (Defence), Shadow SNP Spokesperson (Foreign and Commonwealth Office), Shadow SNP Westminster Group Leader

Everyone will have noticed that the Secretary of State did not answer the question. I asked him whether he would confirm that the UK Government charge for the promotion of Scotch whisky internationally. Apparently, the Foreign Office does charge—£3,000 a time to Scottish Development International to promote Scotch whisky at international events. That is utterly ridiculous. What is he doing about it and when is it going to stop?

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

The hon. Gentleman chooses to ignore the fact that, thanks to the UK Government, we have our network of offices across the whole world, and our embassy network is second to none—certainly when compared with what an independent Scotland would have. Scotch whisky is in a much stronger place as a result of Scotland’s being part of the United Kingdom than it would be if we were independent.

Photo of Robert Smith Robert Smith Liberal Democrat, West Aberdeenshire and Kincardine

Does the Secretary of State recognise how important the energy industry in north-east Scotland is to driving export potential for Scotland? We have built a strong home base for skills and technology, honed in the North sea, and that is a base for great export potential to provinces around the world.

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

I pay tribute, as I have in the past, to my hon. Friend’s significant work in this area. He is an undoubted champion of the oil and gas sector, not just in north-east Scotland but across the whole UK. He is right to point out the sector’s potential and will be aware that I met the Brazilian ambassador and Brazilian oil and gas interests in Aberdeen a few months ago. I look forward to returning to Brazil to focus on oil and gas issues in the next few weeks.

Photo of Jim Sheridan Jim Sheridan Labour, Paisley and Renfrewshire North

I go back to the question of Scotch whisky, which accounts for 25% of all UK food and drink exports, yet is held back by various tariff barriers around the world—most notably in India, where there is a tariff of 150%. Will the Secretary of State set out what action the Government are taking to help whisky industry export growth in other countries?

Photo of Michael Moore Michael Moore The Secretary of State for Scotland

The hon. Gentleman is right to highlight the importance of the whisky sector, not least to large chunks of Scotland; it is not just concentrated around the distilleries. We are working hard with Scotch whisky interests to ensure that we work within Europe to break down the barriers in India and elsewhere. There is a level of support for the Scotch whisky industry that it could not hope to have in an independent Scotland.