Industrial Development Act and Export and Investment Guarantees Act Amendments Bill - New Clause 3

Mr. Bryant introduced the main body of the Bill, supporting clauses that increase financial assistance limits to reflect inflation since 2009. He outlined the proposed amendments to the Export and Investment Guarantees Act but did not explicitly address New Clause 3 or provide a position on it.

Amendments 3 and 4 would prevent UK Export Finance from supporting goods that may be re-exported to sanctioned countries, ensuring alignment with sanctions. This is a safeguard against circumvention of sanctions through intermediary countries. The amendments also seek transparency on steel financial assistance and require reporting on the impact of increased limits. Additionally, they address human trafficking in supply chains by setting public financial support at zero if modern slavery or trafficking are present.

[INTERVENTION] Commends the shadow Minister for her points about transparency and accountability, particularly regarding Northern Ireland's adherence to EU rules despite discussions with regional Administrations. Argues that transparency is crucial to prevent backdoor dictation by the EU through Northern Ireland.

Welcomes the Bill and its focus on a modern industrial strategy but raises concerns about practical access to finance for SMEs, downstream steel processors, and defence exporters. Seeks reassurances that UK Export Finance will facilitate trade finance in a proportionate manner for SMEs and consider the entire value chain when deploying assistance.

Supports the Bill and amendments to ensure UK Export Finance does not support businesses involved in modern slavery or human trafficking, address sanctions evasion risks, and require annual reports on impact across all four UK nations and steel industry. Emphasises the importance of reporting GDP impact, SME export capacity, and EU trade volume to ensure expanded UKEF capacity reaches small businesses and improves trade relations with the European Union.

Supports amendment 1 to ensure UK Export Finance is free from forced labour in its supply chains, aligning with protections already established for other public bodies. Argues that increasing financial limits should not come at the cost of ethical standards and calls for greater consistency across Government departments.

Emphasises the moral imperative to ensure no UK tax money is funneled into companies known for human-rights abuses. Cites examples of UKEF supporting businesses linked to forced labour, such as a subsidiary of AVIC and China Southern Airlines.

Highlights that companies in Northern Ireland are subject to EU state aid rules, limiting their access to financial assistance available to other UK companies. Cites the Windsor framework as imposing restrictions on state aid that apply only to Northern Ireland, affecting equality of opportunity and causing additional costs due to customs borders with Great Britain.

Intervenes to argue that the situation is worse than described by Jim Allister, indicating that EU state aid rules can further limit support for companies in Northern Ireland based on their potential connections with GB markets.

Intervenes again to suggest that investment decisions may be influenced by the reduced state aid available in Northern Ireland compared to Great Britain, potentially leading to job losses and lost business opportunities.

Intervenes briefly but does not provide a position or arguments supporting or opposing the amendment.

Supports new clause 1, emphasising that it is reasonable to ensure transparency in how each part of the United Kingdom benefits from increased financial assistance. Argues that Northern Ireland faces economic and regulatory challenges due to the protocol and Windsor framework, leading to business difficulties and reduced trade with Great Britain.

Criticised the factual accuracy of Sir Iain Duncan Smith's amendment, noting that Haiti was the first country to ban slavery. Emphasised the moral imperative against forced labour and commitment to tackling it through UKEF’s responsible business conduct review.

[Intervention]: Questioned the Minister about the likelihood of delivering on beefing up the Modern Slavery Act to ensure companies check supply chains for forced labour.

[Intervention]: Asked for clarification and further discussion on UKEF’s support for Northern Ireland.

[Intervention]: Sought assurance that the Government would ensure equal terms for all parts of the UK post-Brexit, questioning the Minister’s stance on Northern Ireland's economic interests.

The Bill raises statutory limits to enable additional support for UK industry. While not opposing the Bill, the Conservative party seeks greater transparency and stronger safeguards around public money usage.

Supports the Bill due to its importance for British exporters. However, concerned about eligibility criteria locking out first-time exporting firms and lack of support for SMEs trying to re-enter EU markets.