Mike O'Brien MP

British Companies must play their part in Iraq

Iraq is a dangerous place. But we live in a dangerous world.

Yesterday suicide bombers hit Istanbul killing dozens and injuring hundreds.

A few weeks ago I visited the beautiful holiday island of Bali where a year ago, young people in a nightclub where blown up.

On 11 September 2001 the Twin Towers were destroyed and the lives of thousands taken.

Today we have high levels of security in London. Having faced IRA bombers for 25 years, and now facing the threat of Al Qaeda, we know that there are no safe havens in any country.

The aim of the terrorists is always the same.

It is to destroy innocent lives and render normal life impossible.

We cannot - will not - let them win. Be it in London, New York or, indeed, Iraq.

Saddam Hussein impoverished the Iraqi people.

Through decades of misrule, corruption and terror, he brought what should have been a strong economy to its knees.

Britain, the United States and our Coalition partners have given the people of Iraq a chance to take control of their own future.

It will, in the end, be up to them to seize that opportunity. We will help them, but the future of their country must be for the Iraqis to decide.

In the months to come, our focus must shift to reconstruction. It will be vital to give back to the Iraqi people their natural resources, their wealth and their national pride.

Iraq can still be a great economic success, given the chance.

It is in Britain's, and the international community's, interest that we continue to help the Iraqi people to build a stable, democratic and prosperous Iraq.

In the end, their stability is our stability. Their prosperity is our prosperity. Their democracy will be our security.

We all know there is a long way to go. But the Coalition's commitment to helping Iraq realise its potential is clear.

Britain's military contribution to the multinational force of over 30 countries in Iraq will continue until Iraqis themselves are able to assume full responsibility for their own security.

We will remain committed to the economic and social reconstruction of Iraq and for a better life for its people for as long as it takes.

For most Iraqis, life is steadily improving.

Over 14,000 reconstruction projects have been launched.

Almost all 240 hospitals and more than 1200 clinics are open, as are almost all schools.

More than 200 newspapers have appeared.

And electricity production has surpassed pre-conflict levels.

But for reconstruction to be successful it must be conducted in tandem with political reform.

Here too, there has been progress in recent months. This progress will have a direct effect on investment and reconstruction. For example:

• 25 Iraqi Ministers have been appointed, and are already implementing policy, and managing budgets.
  
• Iraqi ministries have for the first time published the Budget as a public document. This combined with independence for the Central Bank, has provided the basis for a system of public expenditure and macro-economic policy.
  
• A unified currency has been created in Iraq by the introduction of a new set of banknotes produced in the UK.
  
• The CPA and ministries are moving ahead with reform measures to promote the private sector and create an environment for investment and growth in Iraq.

So we meet today against the backdrop of a difficult, but improving picture.

To be successful, Iraq's reconstruction must be done properly.

The right international expertise and resources need to be brought in to make this happen, whether from Britain or elsewhere.

We also need to mobilise the Iraqi private sector to play a full role and to ensure that they have the resources and opportunity to do so.

So it is important that the pledges made a few weeks ago at the Donors Conference in Madrid are a real signal of the international community's commitment to the reconstruction of Iraq.

Britain will commit a further £296 million towards the reconstruction effort in Iraq up to March 2006. This is in addition to the £209 million already committed to humanitarian and reconstruction assistance in Iraq.

Following the Madrid Conference, I visited Washington for talks with the US Administration.

I wanted to explore their thinking on how to manage and disburse the additional $18.6b agreed by Congress.

I also to talked to the World Bank about how they would distribute the balance of the $33 billion in pledges made in Madrid through the Trust Fund they are establishing.

But, I also wanted to showcase the experience and expertise of British companies and underline their readiness to take part in the reconstruction process. I was encouraged by the receptiveness both of US officials and of the World Bank, to this message.

And I am equally encouraged by the fact that so many of you are becoming involved in this important work, as symbolised by your presence here today.

Because today you have a unique opportunity to be briefed by the main US decision makers in this process.

I am pleased to welcome Rear Admiral David Nash, head of the US Project Management Office - the PMO- and Andy Bearpark, CPA director of operations. Andy, as many of you will know, is a DFID secondee and a veteran of the reconstruction of Kosovo.

As British companies, you must take advantage of having these guys in the room today. Because the PMO has been set up to plan, contract, manage and deliver reconstruction. Crucially, it is responsible for spending the additional $18.6b.

I hope that, as was the case with the original Bechtel contracts, British companies secure a large slice of the new contracts.

Already, many British firms are contributing to the reconstruction programme in Iraq across a wide range of sectors.

• As I have mentioned, the new Iraqi currency was printed by De La Rue.
  
• In the field of engineering, Halcrow, Mowlem and Mott MacDonald are helping to build the future of Iraq - literally.
  
• International transactions in Iraq will soon be processed by a consortium including Standard Chartered Bank.
  
• Cummins, Aggreko and Siemens UK have all won contracts in the power sector.
  
• Datasat has won a major telecomms contract.
  
• And Crown Agents won a contract to assist with procurement, transport and warehouse management.

These examples demonstrate what British firms have to offer as partners in the reconstruction process - that they are willing and able to deliver.

So I sincerely hope that when the $18.6b approved by the US Congress comes on tap, British companies will again be able to secure a significant proportion of the contracts.

I say this not simply because there are large sums at stake here. I say it because I believe it is in the best interests of the Iraqi people that British companies are involved. Because in the fields of reconstruction, infrastructure, power generation and oil and gas, our companies rank among the best in the world.

So I hope that you will come away from today's conference with a real understanding of how the PMO will work.

I hope the sector specific sessions in particularly will provide a level of detail, which will allow you to share information and get directly involved in the reconstruction effort.

And to ensure that this information reaches as wide an audience as possible we have asked trade associations and multipliers get the message across to their members afterwards. UK Trade and Investment will also post a full report on its website.

Of course Iraq is a very difficult environment in which to work. It is important to acknowledge this.

Addressing security in Iraq remains the absolute priority for the Coalition.

The overnight attacks in Baghdad show that violent reactionary forces want to deny the Iraqi people the security, representative government and prosperity they deserve.

Terrorists are actively targeting UK, US, Western, and other international interests in Iraq, and the threat to British nationals in Iraq remains high.

The Foreign Office advises against all but the most essential travel to Iraq.

So companies should only consider visiting Iraq if they have strong commercial or professional reasons to do so.

And it is imperative that they make their own private security arrangements if they do travel there.

There are British companies who can help them provide an element of security. Indeed some of these companies are - understandably - growing fast these days.

So British companies who are prepared need not be deterred.

We want British companies to play an important role in reconstruction and in developing the country's economy and private sector.

So if you do intend to travel to Iraq or have staff going there, talk to the Iraq Unit in UK Trade & Investment or the Iraq Policy Unit at the FCO. And talk to the companies that can help provide some element of protection.

The British Office in Baghdad can offer advice on operating in such a difficult environment. It will also advise our companies on the practicalities of working with the CPA.

And within it, a British Trade and Reconstruction Office is tasked with alerting UK industry to the reconstruction needs and opportunities in Iraq.

Again, this service shows our commitment to the Iraqi people to ensure that our industry is aware of their needs.

I want to leave you with one last thought.

Iraq's reconstruction will only happen if we can get the right people with the right skills on the ground to make it work, and, if we can mobilise the Iraqi private sector to play a full and active role.

Iraqis already have many of the skills needed to rebuild their country.

But they need to be given the opportunity to do so.

That means working with Iraqi partners and using Iraqi manpower and expertise. That should be central to everybody's business strategy for Iraq.

Reconstruction will mean that Iraqis will have the basic services and utilities they need. It will also create jobs for Iraqi workers and income for Iraqi families.

And that will improve the overall security in the country as well which, as I said at the outset, is in Iraq's interest just as much as it is in ours.

Helping the Iraqi people secure a stable, democratic and prosperous future for their country will remains at the top Britain and the United States' agenda.

Tony Blair and George Bush gave a powerful reaffirmation of this in yesterday.

I know that British industry will play its full part in this endeavour.

I wish you every success.