What progress the Government are making in opening markets for UK companies to sell financial services in India and China.

The UK Government fully support the efforts of the European Union to negotiate commitments on opening financial services markets in World Trade Organisation countries, including India and China, as part of the Doha development agenda. The recent visits of my right hon. Friend the Secretary of State to India and of the Chancellor of the Exchequer to China have stressed the message from industry that a liberalised and transparent financial services sector brings huge benefits, including increased foreign direct investment and the transfer of skills.

I am glad to hear my hon. Friend's comments. The insurance company Aviva is an important employer in York. It has a subsidiary in India that sells life assurance policies and that helps to safeguard jobs in the UK. However, Aviva's general insurance business cannot sell policies in India because the Government of India will not allow foreign companies to compete with Indian insurers. Will my hon. Friend ensure that our Government continue to press the Indian and Chinese Governments to allow UK companies to compete on a level playing field in their countries, where there is a growing middle class that wants insurance because of the security that it brings them?

I am grateful to my hon. Friend for raising the subject, on which he has worked tirelessly. I understand that, in India, foreign underwriters have set an equity cap of 26 per cent. Of course, that is a matter of concern to us and it is why officials of UK Trade and Investment and our high commissioner in Delhi have already raised the matter with the Indian Government. I assure hon. Members that that work will continue to ensure that we can give the best opportunities to the British companies that my hon. Friend described.

The Minister claims to support exports and opportunities for our companies abroad, but why is the Department reducing support under the support for exhibitions and seminars abroad—SESA—scheme for companies that want to attend trade fairs and open up markets abroad? Why has the Department resisted the representations that have been made to improve the conditions under that scheme and not restrict them, as the Government are doing?

I am intrigued by the hon. Gentleman's brass neck in raising SESA funding given the Conservative party's approach to funding support for UK exports. On his substantive point, there is a genuine challenge to ensure that resources are used effectively. We believe that the best use of public money is, especially where market failure has occurred, to help those companies that are new to export. That is why we established the passport to export scheme. In the past, several companies secured public support and subsidy sequentially for some years. Labour Members believe that the best use of public money is to use it for those companies that have never previously exported, thus giving them the opportunity to export to new markets for the first time. I am sure that many people in industry agree with us.

The Minister knows that, in the past few weeks, the Treasury Committee visited Beijing and Shanghai, where we witnessed one of the most rapid changes in global trading patterns, with China exporting more than Britain, France and Italy combined. We were pleased to note the presence of insurance companies such as Prudential and Standard Life Assurance. However, in a weak and immature banking system, there was an absence of the large retail banks in the market. What encouragement can the Minister and the Government give to such companies to embed themselves in a rapidly growing market?

I am grateful to my right hon. Friend for raising this issue, which draws on the point that I was making earlier. There is a great deal of work being done by UKTI in China and about 100 missions supported by UKTI will take place there in 2005 and 2006. On the specific issue of access to British financial services—an area in which we have a great deal of expertise—I can assure the House that lobbying by UKTI has helped to secure operating licences for Prudential, Standard Life and Aviva. The China-Britain Business Council is working with UKTI to secure a further 220 licences, targeted for the years 2005 and 2006.