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Brian Wilson MPThe Asian Business Network Breakfast |
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Introduction It is a pleasure to be here this morning - amongst representatives of a group of communities that has enriched British society immeasurably. But perhaps so often overlooked because of the lack of self publicity although I understand that Bollywood stars regularly fill Wembley Stadium - an achievement the England football team would be envious of. The truth is that you have become prominent in every field, from medicine and law to sport, academia and, of course, business. You have, as a group, powered our economy, creating tens of thousands of jobs, throughout the UK. Often providing the regeneration impetus in areas of high unemployment. Let me quote briefly from an article entitled "Britannia bubbles" in the Economist?s recently published "The World in 1999": "The success of Asian incomers will make Britain in 1999 resemble California even more... the typical young British economist and business school graduate will soon be Asian." Indeed, the parents and even elder brothers of these young Asians are already incredibly successful - there are well over 300 Asian millionaires in the UK today. You represent a community of immense strength and astonishing vitality. What you have to say matters, and your voice is listened to.
It was to this end that my Department recently hosted a seminar for ethnic minority (EM) businesses. The aim of the seminar was to explore if there are specific barriers to growth and start-up of EM business; what actions might be taken to help overcome them and by whom; and how the DTI and related business support organisations might promote their existing initiatives more effectively. Since the seminar, we have been developing a strategy to enable DTI to support and learn from EM businesses more effectively. For example, DTI officials have been exploring the difficulties faced by ethnic minority businesses in accessing finance. By visiting a number of High Street banks and the Bank of England to discuss their work in this field we hope to improve matters. Some of the other proposals that were made at the seminar, particularly on promoting our services more effectively to ethnic minority business organisations will be acted upon. Our primary local access point is the Business Link network. They are able to give first class business support geared to the needs of local employers including the particular needs of ethnic minority businesses. For example, Business Link London North West has set up the "Changing Futures" initiative. This provides specialist high quality business support aimed at helping the competitiveness of Asian and other ethnic minority SMEs. It is focused around five themes: people; technology; markets; finance and capacity building. 500 firms will be assisted. But delivering programmes is not the only activity. Business Links are encouraged to make sure that ethnic minority organisations are represented on their Boards. Many have achieved this requirement and more will do so. In addition to acknowledging the importance of Asian business I am, of course, here today to say a few words about the DTI?s role in promoting trade with the Indian sub-continent. Especially as to how the Asian community are involved in this. Your presence here is a testament to the fact that British companies are ready, willing and keen to buy from, sell to and invest in the sub-continent.
Starting with India. Following the wide sweeping reforms which the Indian Government initiated in 1991, countless opportunities for partnership were opened up. The problem was one of awareness. Hence the decision by both the Indian and British Prime Ministers in 1993 to launch the Indo-British Partnership - with the specific objective of raising awareness of these opportunities. Business and Government in both countries helping to spread the message. In the UK the main driving forces are my Department and the private sector under the auspices of the IBP Area Advisory Group, chaired by Sir Terence Harrison. Much advice is received from the NRI community who have several representatives on the Group. The success of our efforts over the last five years are witnessed by the fact that trade between UK and India is currently in balance and has risen from £2.2 billion per annum in 1993 to £3.6 billion in 1997. An increase of some 80%. Trade was not the only area to increase. So also did investment. I am pleased to say that Britain remains the largest cumulative investor in India with over £3 billion invested. New investment since 1991 has increased by 15 fold. But we cannot rest on our laurels. Lamentably over the last year the increase in trade has slowed. However this must be seen within a wider context. The strong pound, the depreciation of the Rupee and the financial crisis in South East Asia. Notwithstanding this hiccup the undeniable trend is upwards. The Indian economy is still growing, as also is ours. Liberalisation is here to stay. Every Indian Government since 1991, has continued the process to one degree or another. It is irreversible. Thus the IBP continues to deliver a full programme of events. In September of this year the Chairman of the British Overseas Trade Board, Sir Martin Laing visited India together with Sir Terence Harrison and a high profile business team. The last eight weeks alone have seen UK participation as Partner Country at the International Mining Machinery Exhibition in New Delhi, an Indo-British Partnership Week in Bombay and visits to the UK by delegations from West Bengal, Gujarat and the Indian Merchant Chamber. In February of 1999 there will be a major UK presence at the Indian Engineering Trade Fair, the sub-continent?s premiere trade fair. During the course of next year the DTI will sponsor the participation of British companies in 8 trade missions, 6 trade fairs and a series of seminars in India. An astonishing but not unusual amount of activity that serves as evidence of the vibrancy of our trading relationship. My department has designated India as one of its 12 priority markets for trade promotional activity. The IBP?s high level of activity will continue and increase. I acknowledge that the Indo-British Partnership has not in the past treated Non Resident Indian?s or Asian businesses as a separate entity. But as I have already mentioned NRI?s are represented on the Area Advisory Group and have always played a significant role within the Partnership. Indeed Mr GK Noon, who I understand will be speaking after breakfast played host to an IBP workshop and reception at the London Chamber earlier this year. I am sure he will vouch for a healthy turn out of NRI?s at such events. However, in recognition of the Government of India?s new regulations relating to NRI activity in India - according them financial and other advantages over other businessmen the IBP is currently considering how to best work more directly with the NRI community. New programmes are being designed. My officials certainly welcome and need the views of the Asian Business Network.
Moving on to the rest of the Sub Continent Although India is a priority market I assure you that the DTI and the Southern Asia Advisory Group (SAAG) continue to actively promote trade with Pakistan, Sri Lanka, Bangladesh, Nepal and the Maldives. SAAG?s membership includes representatives from the Pakistani and Bangladeshi business communities. Trade and particularly investment between the UK and Pakistan, Sri Lanka and Bangladesh has flourished in recent years with 35% of direct investment into Pakistan now coming from UK compared to just 6% in 1992. In Sri Lanka UK investment has increased from 8% to 17% during the same period whilst in Bangladesh the UK consistently remains the third largest investor. On the trade side exports to Sri Lanka increased by a staggering 42% last year and the market remains a very popular destination for DTI sponsored missions which are often heavily oversubscribed. Exports to Pakistan and Bangladesh has fallen although in Pakistan our market position has increased to sixth. The DTI works closely with the Bangladesh British Chamber of Commerce in organising seminars on investing in and trading with Bangladesh and encouraging non resident Bangladeshis to consider opportunities in that market. Many of their members participate in DTI sponsored trade mission to the country. The DTI South Asia Group also works closely with the UK Sri Lanka Business Council, the UK Pakistan Overseas Chamber of Commerce and local authorities with large Asian communities such as Tower Hamlets, Bradford and Oldham all of which are committed to developing their economic links with the region. The DTI regularly attract businessmen from the ethnic communities to South Asia business clinics which are held throughout the country and which form the backbone of the South Asia Groups trade promotion effort. Trade promotion by the DTI South Asia Group continues at a pace. The last month has seen a very successful 20 strong trade mission to Bangladesh, a Nottingham Chamber mission to Pakistan, a very successful trade fair in Colombo as part of our celebration of Sri Lanka?s 50th anniversary which included seminars on ceramics, management and renewable energy, a seminar on the oil and gas sector in Pakistan attended by over 80 companies and a fifteen strong trade mission to Nepal which is underway at the moment. On Monday my colleague Kim Howells will open the second British trade fair in Dhaka. There will be little let up in the new year with a record number of chambers of commerce bidding to take missions to Pakistan and a large number of bids from organisations wishing to arrange exhibitions and seminars in the South Asian markets. Even in the Maldives the DTI is being active, with 400 companies expressing interest in a catalogue exhibition to be held in February.
The DTI does not promote the markets of the Indian sub-continent as the place to make a quick buck. The sub-continent is not an easy market nor is it one for the feint hearted. Working closely with the Asian community in Britain can, to my mind, only increase our chances of unlocking the great opportunities that undoubtedly lie within that region. And allow us all in Britain and the sub-continent to prosper further. More generally my Government greatly values the contribution that ethnic minority communities make to this country - economically, socially and culturally. The communities are an important source of ideas, innovation and skill. Britain today is a multi-ethnic, multi-cultural society that draws strength from its many different constituents. The Asian community forms a significant part of British society and the richness and diversity that this country draws from its Asian community has made Britain a stronger nation. I look forward to playing my part in seeing Asian business become even stronger. |
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Other speeches by Brian Wilson MP
(the following are available from the archive) |
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