A new inquiry has been initiated by the Business and Enterprise Committee of the House of Commons, to establish where the best opportunities for UK exporters lie, in current difficult economic times, and whether the Government is doing enough to help UK businesses grasp these opportunities.
As exports are so vital to UK motorsport companies, the MIA feel it is important that all interest should engage with this process to ensure improvements are made to their benefit. MIA's CEO, Chris Aylett, said "We will plan to organise an industry-wide response to this inquiry which comes at a critical time for our sector. We rely on exports for over 60% of our business where MIA members trade with the entire world of motorsport. We need improvements in Government support for these businesses and we trust this process can help deliver this. I encourage any exporter to either submit individual written comments to aid the inquiry or pass these to the MIA - www.the-mia.com who will add these to their own submission."
Background
UK GDP fell by 0.6% in the three months from July-September 2008, and by 1.5%, the steepest quarterly drop since 1980, between October and December 2008. The value of the pound has fallen from circa 2 US dollars to circa 1.3 US dollars in the past year.
WTO statistics for 2007 show that the UK was the second largest exporter of services, after the US, and the eighth largest exporter of merchandise. The United Kingdom has had a strong position in the financial and service industries for some time but much of British engineering and manufacturing industry is also world class. The UK is the world's sixth largest manufacturer by output.
Exporting companies contribute hugely to the UK economy. Not only do exporters have higher productivity than non-exporters but exporting can increase a firm's productivity still further.
The relative strengths of different sectors may well be affected by changed economic circumstances. The Government has announced measures to support exporters by increasing the resources available for export credit guarantees for smaller companies. Recently, the Trade Secretary, Lord Mandelson, has spoken of "industrial activism", identifying and nurturing areas where the UK has a competitive advantage.
In 2006, UKTI launched its Five-Year Strategy, entitled "Prosperity in a Changing World". This recommended that UKTI be given stability to deliver that strategy, and the Business and Enterprise Committee begins from the assumption that this outcome remains desirable. Nonetheless, circumstances have changed and it seems right to ask if any changes to the UKTI strategy are necessary.
The Committee inquiry will ask
- What should be done to sustain and increase Britain's export strengths?
- Is there more the Government or UKTI, could do to support exporters, to identify key sectors or to re-prioritise markets?
As a first step in the inquiry, the Committee will be taking evidence from Lord Jones of Birmingham, former Minister for Trade, at 2.30 pm on Monday 23rd February in Committee Room 6 in the Palace of Westminster.
The Committee would welcome written evidence from companies or organisations before Monday 20 April 2009.
Details on how to submit written evidence can be found on: http://www.parliament.uk/documents/upload/witnessguide.pdf or can be sent by Committee staff.
Committee membership is as follows:
Chairman: Peter Luff MP (Con) (Mid Worcestershire)
Mr Adrian Bailey (Lab) (West Bromwich West)
Mr Roger Berry (Lab) (Kingswood)
Mr Brian Binley (Con) (Northampton South)
Mr Michael Clapham (Lab) (Barnsley West and Pen.)
Mr Lindsay Hoyle (Lab) (Chorley)
Miss Julie Kirkbride (Con) (Bromsgrove)
Ms Anne Moffat (Lab) (East Lothian)
Mr Mark Oaten (Lib Dem) (Winchester)
Mr Lembit Öpik (Lib Dem) (Montgomeryshire)
Mr Anthony Wright (Lab) (Great Yarmouth)
Specific Committee Information: Tel 020 7219 5777, email: becom@parliament.uk
