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AMENDMENT OF THE LAW

Yes, and may I also point out that many of our local authorities have a long and honourable record of putting together trade fairs especially for the benefit of local manufacturers, and traders in goods and services, in order to create a virtuous circle of economic growth within their districts? I want to see those practices expanded and made best use of, as they make a positive contribution to the overall effort. It is important to look at exports, and I shall come to UK Trade and Investment—UKTI—in a moment. We now have perhaps the most favourable exchange rates for manufacturing that we have seen in a considerable time. We have seen a fall in the pound against the euro of 12 or 13 per cent. since last summer, which is extremely helpful to our exporters. We have also seen a growth in the strength of the pound against the dollar, which is helpful in so far as many of the raw materials that we import come from outside the euro area, from the dollar areas. We then sell our manufactured goods into the euro area. That provides an ideal opportunity for the Government to redouble their efforts to give more encouragement to exporters to take advantage of these circumstances, which could last for another 12 months or just until tomorrow—who knows? We just do not know, but we must recognise that we have that advantage. In my constituency, some years ago, Goodyear—a world-famous company—was buying rubber in the dollar markets and selling its products overwhelmingly into Europe. It was facing a reverse premium on currency of about 15 per cent. Thank goodness that has gone. The advantage that we now have is extremely helpful. Exchange rates are creating very favourable conditions, and this is an ideal opportunity for the Government to look really hard at how we might assist our manufacturing and export industries. The UK has the second largest aerospace industry in the world, outside the USA. In 2006, its sales reached almost £20 billion, and two thirds of that went into exports. The aerospace manufacturing community has responded magnificently to the challenges of global competition. It employs—directly and indirectly—about 275,000 people, and an additional 50,000 are employed abroad by the aerospace industry, mainly in the USA. It invests about £2.5 billion every year in research and development. Such investment certainly fell during the Tory years, but it has grown and stabilised since then, and it is still improving. That is to be welcomed. The aerospace industry remains very important to the future of our manufacturing industries. The technology base that it brings is invaluable, and must be nurtured. We have to cherish it, to ensure that the spin-off from the investment in R and D spreads out and benefits the whole country. In the auto industry—manufacturing, distribution and servicing—the business sales are about £200 billion per annum. It has 200,000 direct employees and 500,000 people employed in distribution, sales, servicing and maintenance who are supported by the auto industry. The industry represents 5 to 6 per cent. of our total manufacturing output. It, too, must be cherished, and our people are responding.