Commons Sense

House of Commons · Ministers' Questions

Scottish Export Supply Chains

Thursday 3 November 2022 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Scottish National Party members asked questions about steps being taken to help Scottish exporters deal with inflation and exchange rate fluctuations.
  • The Minister responded by highlighting the political stance of the SNP and its impact on Scottish businesses and the UK economy.
  • The Minister also discussed ongoing negotiations for the comprehensive and progressive agreement for trans-Pacific partnership to reduce tariffs and increase market access for Scottish exports.

Topics (select to filter)

Questions & Answers

Q1 Dave Doogan SNP Angus and Perthshire Glens
Economy Scotland Business & Trade
Context

The MP notes the challenges faced by Scottish exporters due to inflation and exchange rate fluctuations.

Question

What steps she is taking with Cabinet colleagues to help reduce the effects of (a) inflation and (b) exchange rate fluctuations on the supply chains of Scottish exporters?

Answer from Andrew Bowie

The hon. Members will be aware that His Majesty's Treasury leads on this policy area. However, I am happy to provide them with an update on the support that my Department is providing to Scottish exporters during the cost of living crisis. The DIT Scotland team based in Edinburgh—I am sure that they are pleased to see His Majesty's Government increasing their presence in Edinburgh—was established in 2021 with trade and investment expertise dedicated to supporting Scotland's businesses to grow through exporting overseas. Scottish businesses can access many UK Government services, including the export support service, the UK Export Academy, UK Export Finance and DIT's overseas specialists in over 100 markets across the world.

Partly answered

Not addressed: Did not provide specific steps or commitments to directly address inflation and exchange rate fluctuations on supply chains.

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Q2 Gavin Newlands SNP
Scotland Brexit Business & Trade
Context

The MP presents data showing UK's lack of export growth in comparison with several other countries.

Question

I welcome the Minister to his place. However, let us compare export growth in the first quarter of 2019—pre-Brexit and pre-covid—with the first quarter of 2022. In Belgium, it was plus 49%, in Switzerland, plus 42%, in Poland, plus 35%, in Australia, plus 46%, in the Netherlands, plus 23%, in Italy, plus 23%, in Spain, plus 19%. The UK's figure was zero. Does he agree with Saxo Bank's assessment published in Le Monde that political instability, trade disruption, an energy crisis and skyrocketing inflation are rendering the UK an emerging market country? Why on earth would Scotland want to remain shackled to it?

Answer from Andrew Bowie

It is a bit rich for the SNP to talk about political instability and uncertainty given that its own policy is to rip Scotland out of the United Kingdom, doing more damage to Scottish businesses and the economic foundations of our United Kingdom. The global economic situation in which we find ourselves is putting huge pressure on British businesses, but the Government, and especially the Department, are doing everything that we can to support British businesses to export to new markets and the European Union at this time.

Not addressed: Did not address the specific question about Saxo Bank's assessment or UK's economic situation.

How: It Is A Bit Rich For The Snp To Talk About Political Instability...

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Q3 Dave Doogan SNP Angus and Perthshire Glens
Brexit Business & Trade Agriculture & Rural Affairs
Context

The MP discusses the challenges faced by Scottish farmers due to rising costs and competition.

Question

I welcome my constituency neighbour to his Front Bench role. We are all relieved he has finally landed the job. Fuel, feed and fertiliser costs are sky-high in Brexit Britain, compounded by the Tories' cost of business crisis. How does the Minister suggest that my Angus farmers and his West Aberdeenshire and Kincardine farmers compete internationally? Supply-side pressures are manifest in other markets, but they are most acute in the United Kingdom. Our farmers must also now compete with the scandalous Australia trade deal, which will see Australian farmers laughing all the way to the bank while Angus farmers and other Scottish farmers face bankruptcy.

Answer from Andrew Bowie

The hon. Gentleman is a champion for Angus farmers and Angus berries, which we would like to see exported to more markets around the world. Indeed, that is why we are in the middle of negotiating access to the comprehensive and progressive agreement for trans-Pacific partnership. That will reduce 99.9% of trade barriers to that part of the world, an exciting, new and growing market for produce from Angus, West Aberdeenshire and Kincardine, Scotland and the entire United Kingdom.

Partly answered

Not addressed: Did not provide specific suggestions on how Scottish farmers can compete internationally given current challenges.

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Q4 Peter Bone Con
Economy Business & Trade
Context

The MP discusses the impact of the fall in value of pound against dollar on Scottish and British exports.

Question

Before I came to this place, I ran a manufacturing company and did a lot of exporting, in particular to the United States of America. In relation to the second part of this question, when dealing with a big contract one buys the currency forward. However, is it not a fact that the fall in the value of the pound against the dollar has made Scottish exports much more attractive, because they are cheaper in America, and made imports more expensive? Is that not a good thing?

Answer from Andrew Bowie

The Government are committed to stabilising the economy, driving down inflation and increasing British exports around the world. My hon. Friend is a great champion for his constituency and I know he will join us in those efforts moving forward.

Not addressed: Did not address whether currency devaluation makes Scottish exports more attractive or imports more expensive.

How: The Government Are Committed To Stabilising The Economy, Driving Down Inflation And Increasing British Exports Around The World.

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