Small and Medium-Sized Firms

Oral Answers to Questions — Trade and Industry – in the House of Commons at 12:00 am on 14 May 1986.

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Photo of Mr Graham Bright Mr Graham Bright , Luton South 12:00, 14 May 1986

asked the Secretary of State for Trade and Industry what his Department is doing to improve the export marketing of small and medium-sized British firms.

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

The services offered by the British Overseas Trade Board provide valuable support for companies' export marketing. About three quarters of those using these services are smaller companies employing fewer than 200 people. The British Overseas Trade Board is currently running a series of conferences on export marketing throughout the United Kingdom, which are designed primarily for smaller companies and those new to exporting.

Photo of Mr Graham Bright Mr Graham Bright , Luton South

I welcome my hon. Friend's answer, but will he take it a step further? Bearing in mind that, in the latter half of this year, we shall hold the presidency of the EEC Commission, is it possible to get to grips with a situation in which many firms have to manufacture to different specifications for each European country? As a business man, I know how difficult it is for a small company to do that. What are the prospects of ironing out that problem?

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

My hon. Friend is right. The essence of the internal market, which consists of 330 million consumers, is that there should be free circulation of goods without artificial impediments. The harmonisation of technical standards is one of the most important of those elements.

Photo of Mr Michael Meadowcroft Mr Michael Meadowcroft , Leeds West

Why does the hon. Gentleman think that tiny companies in Italy—often cottage industries—can manufacture knitwear and other textile products which feed into large units and then into exports, but apparently we cannot cope with such a system here?

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

That simply constitutes a different approach to marketing. If British manufacturers do not adopt that approach, there must be very good reasons for it.

Photo of Charles Wardle Charles Wardle , Bexhill and Battle

Is it not a fact that about 6,000 firms in this country with turnovers of between £1 million and £10 million a year do not export? Does my hon. Friend agree that this presents just the right target for the BOTB's attention?

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

It is perfectly true that breaking into export markets can be time-consuming and expensive. Many firms may find it more appropriate to wait for customers to come to them, and thus opportunities are lost. The BOTB's initiatives in this respect are extremely valuable. The board holds a number of conferences which are extremely well attended by business men at which it explains what facilities are available.

Photo of Mr John Evans Mr John Evans , St Helens North

Why has there been such little progress in the harmonisation of technical standards in the EEC? Is it not a fact that the Europeans can apparently export goods to this country with impunity, but we cannot export to them?

Photo of Mr Bernard Weatherill Mr Bernard Weatherill , Croydon North East

Order. Is the hon. Member on the right question?

Photo of Mr John Evans Mr John Evans , St Helens North

Yes, Mr. Speaker. It is about technical standards.

Photo of Mr Bernard Weatherill Mr Bernard Weatherill , Croydon North East

Is it about export marketing of small and medium-sized firms?

Photo of Mr John Evans Mr John Evans , St Helens North

Yes, Sir. The Minister should answer.

Photo of Mr James Couchman Mr James Couchman , Gillingham

My hon. Friend may care to know that a strong team from my borough of Gillingham has just visited Japan. The team included the chief executive, the leader of the council and people from the enterprise agency and the chamber of commerce. They made valuable contacts, but they were struck by the difficulties faced by firms, especially small companies, in penetrating that market. Is there not a case for the Department to set up a regular and consistent counselling service for small companies so that they gain expertise in this regard?

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

The British Overseas Trade Board does have such a service. I would very much like my hon. Friend to ask his delegation to communicate with my Department and report on what it found. I am doing my best to build up a picture of the various difficulties and restrictions faced by British exporters to Japan, and the more material that I can have presented the better.

Photo of Mr John Smith Mr John Smith , Monklands East

Will the Minister now kindly answer the question put to him by my hon. Friend the Member for St. Helens, North (Mr. Evans), which was highly relevant to export marketing and technical standards, which, as the Minister should know, is very much at the heart of our potential export success? If he does not know the answer, will he just say so?

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

It is far too early for the right hon. and learned Gentleman to take this ludicrous and pompous line. He knows perfectly well that if Mr. Speker had wished me to answer that I would have done so. I cannot remember whether the hon. Member for St. Helens, North (Mr. Evans) was even in the Chamber when I answered the question initially. I said that the harmonisation of technical standards was the most important single element in the completion of the internal market.

Photo of Mr John Stokes Mr John Stokes , Halesowen and Stourbridge

In spite of all the help which the Government are at present giving to firms in this country, does my hon. Friend agree that the prime responsibility is for the management of British firms? Firms in my constituency, which export all over the world, do not go to the Government with a begging bowl all the time.

Photo of Mr Alan Clark Mr Alan Clark , Plymouth, Sutton

I congratulate the firms in my hon. Friend's constituency. However, I do not think that we are talking about a begging bowl. We are talking about the difficulties that many small firms experience in starting to export on their own account in the first instance. To help them with that, the BOTB is extremely useful.