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The importance of trade between the UK and Israel

The Rt. Hon. John Hutton MP,  Secretary of State for Business, Enterprise & Regulatory Reform
British-Israel Chamber of Commerce Gala Dinner, London,  03 July 2008

Jonathan, thank you very much indeed for that introduction.

Your Excellency, Mr Chairman, Ladies and Gentlemen, I am very greatly honoured indeed to be asked to speak this evening, as we celebrate the 60th anniversary of the establishment of the state of Israel.

And I’d like to start by first of all paying tribute to Sir Trevor Chinn, recipient of tonight’s Israel Sieff Award.

Trevor, your lifelong commitment to strengthening the ties between Britain and Israel, and your service as President of the British-Israel Chamber of Commerce and as Chairman and now President of the Israel-Britain Business Council, has helped create jobs and opportunity across both of our economies and countries.

It is a record of tremendous achievement and we honour it tonight.

I believe it is right that as we gather here tonight at one of the most important events in the British-Israeli business calendar, we celebrate your success alongside the 60th anniversary celebrations.

I’d also like to thank all of the members, friends and supporters of the B-ICC.

This organisation was created when Israel was just a fledging state.

Over the last fifty-odd years, it has made, I believe a tremendous contribution to helping Israel grow into the strong, vibrant democracy and dynamic, innovative globally orientated economy that it is today.

With impressive and sustained annual growth.

Israel’s economy, as you all know, grew by 8% in the last quarter of 2006, the fastest growth of any Western nation. In 2007, it grew by more than five percent, again quicker than the US, Europe, UK and Japan.

And it now has its lowest unemployment rate for decades.

Along with record levels of inward investment.

So - despite the global economic slowdown, which of course as we know is serious - Israel’s prospects for the future look very bright indeed.

That optimism for the future is testament to the extraordinary spirit of the Israeli people. As indeed is the nation’s very survival over the past 60 years in the face of unremitting hostility from some of its neighbours and the constant and intolerable threat of terrorism and violence taken against its people.

But on a positive note, I’m glad to say that trade between our two countries is today stronger than ever before.

Last year, it reached £2.3 billion. Thanks in no small part to the work of the B-ICC, with UKTI and others, to help thousands of British and Israeli businesses connect and invest in these markets.

Importance of UK-Israeli Relationship

In an intensely competitive and often uncertain, globalised world such links – in politics, science, culture and trade - are crucial to any country’s continued success.

During the last 60 years, in all of these areas, Israel has been both a good friend and a natural partner for the UK. And this Government remains committed absolutely to strengthening those ties between us, making them even stronger in the future.

Gordon Brown will be visiting Israel in the coming weeks. The UK stands ready, as always, to continue its support for the pursuit of peace.

Peace Process

The process launched at Annapolis last year gives Israel a real opportunity to achieve a fair and just peace agreement with the Palestinians.

It will take ambition, courage and dedication over the coming months. But I have come to expect nothing less from the people of Israel.

Despite those who seek to spoil the peace process, we must all hope for a successful outcome to the current negotiations. I was deeply saddened and appalled to hear of the bulldozer terror attack in Jerusalem yesterday and the continued rocket and mortar attacks from Gaza into the Negev region contravening clearly the ceasefire agreements.

We must continue to actively encourage those people committed to the realisation of an Israel free from terror and at peace for generations to come, alongside a viable, independent and prosperous Palestinian state.

Only then can Israel truly unlock its economic potential. And through growth and increased co-operation secure a lasting peace and fulfil the rising aspirations of its people.

Britain will continue to work with you, as an ally, as a friend and as a partner in trade, to achieve this brighter future.

Trade

And when it comes to trade, more than 250 Israeli firms now operate in the UK. And over 50 are currently raising capital on the London Stock Exchange.

The importance of this business, and our determination to help it grow, was highlighted during the Lord Mayor of London’s incredibly successful visit to Israel in January.

Ambitious enterprises need to be where the world does business. And London is the world’s number one financial centre - equipped with the right skills and expertise to help Israeli companies meet their rising global ambitions.

Last month was the first anniversary of the memorandum of understanding between the Tel Aviv Stock Exchange and the London Stock Exchange. And this has already become a lucrative partnership - in a year that saw the Tel Aviv Stock Exchange grow by 32%. And we’ll continue to promote our financial markets as the best place for you do business.

And UKTI, from my own department, is committed to working with B-ICC and others, to help more and more UK and Israeli companies set up and invest in markets across our economies.

Israel is already the UK’s 3rd biggest export market in the Middle East, with major British companies including HSBC, APAX and British Airways managing significant interests out there.

And as tourism between our countries booms - with hundreds of thousands of Israelis and Brits heading to each other’s shores every year - BMI’s new route to Tel Aviv has proved to be its most successful launch ever.

Along with new flights from ThomsonFly, this is just a start. Israel’s Open Skies policy will not only help increase revenues, but will also serve to break down barriers to opportunity and improve understanding between our people.

And the recent agreement with the EU means that even more, in trade and other areas, I think is possible in the future.

Free Speech, Free Debate

British author Ashleigh Brilliant said “Good ideas are common – what’s uncommon are people who will work hard enough to bring them about.”

World-class education and training give people the skills they need to turn good ideas into jobs and wealth. And academic exchange and partnerships between countries also increases knowledge to share best practice and improve understanding between communities.

That is why the UK Government fully supports academic freedom and is firmly and totally against any boycotts of Israel or Israeli academics and their institutions.

Now attempts to mount such boycotts have failed in the past. And it is my hope that any current or future calls, wherever they may come from, will fail to be translated into significant practice on the ground.

Representatives from numerous British Higher Education Institutions regularly travel to Israel for recruitment purposes.

For example, UCL has a special agreement with the Hebrew University and both Liverpool and Derby universities have operations in Israel.

And hundreds of Israelis study in the UK every year.

Now, this group will soon include 11 young Israelis attending universities in this country, as part of the prestigious Chevening Scholarship Programme and joint awards with private sponsors.

They are welcome in the United Kingdom.

All this strengthens existing academic links and joint projects between British and Israeli institutions and helps create the friendships, as well as the business partnerships of the future.

And our government will continue to look for ways to enhance and increase them.

Conclusion

So in conclusion, I just want to say this. Britain will always be a firm and true friend of Israel.

And relations between our two countries are positive and strong. The jobs, wealth and opportunity generated by business between us will be essential to our mutual future prosperity.

I am determined to ensure that Britain and Israeli companies have the support and access they need to help that grow for decades in the future, for generations to come after us.

And I wish the Chamber, its members and everyone associated with this profound and important mission every success in their work to help support that noble commission.

Thank you.

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