Supply Chain Security
What assessment he has made with Cabinet colleagues of the adequacy of the security of UK supply chains.
Resilience is vital in all our supply chains. That is why we have launched the supply chain centre, which will help to strengthen that resilience. War, extreme environmental events and the deliberate or accidental closure of shipping routes can affect everything from agriculture to construction in the UK. We want to do everything we can to predict, assess, minimise and mitigate those risks.
We have already seen the vulnerability of our economy to global supply chain shocks from the impact of wars on food, fuel and fertiliser prices, but scientists now warn that we are likely to be heading into a super El Niño—a global heating event that will trigger extreme weather around the world, threatening fish stocks and agriculture, disrupting the Panama canal and bringing climate induced fires that destroy vital timber supplies. How are Ministers preparing for those risks?
My hon. Friend is absolutely right to raise El Niño. We believe that it has already started, and we are conscious of the issues that may arise from it. We are closely monitoring it and trying to ensure that we have resilient policies in place in every single sector, including agriculture and fisheries.
I should underline that the launch of the supply chain centre is an important moment for us. For the first time, we will have a body that can anticipate future supply risks, identify the inputs the UK needs, build domestic resilience and foster resilience through global partnerships. Those are important ways of ensuring that the UK has strong supply chains.
I thank the Minister very much for his answer. As the Member of Parliament for Strangford, I am particularly concerned about the problems that the Windsor framework has created for those trading across our borders and between our ports—he has answered my questions on this on other occasions. Businesses continue to report increased costs, administrative burdens, disruption to supply chains and delays. As a result, businesses have stopped trading into Northern Ireland. Given the likely negative economic consequences of that, will the Minister consider further steps to reduce those burdens and ensure smooth trade into Northern Ireland?
We are doing that all the time, and that is why we bring the issue of resilient supply chains into consideration in all our international trading relationships. For instance, particularly important to Northern Ireland is our relationship with the European Union, to which the hon. Gentleman referred in mentioning the Windsor framework. I am keen to ensure that resilient supply chains are looked at in the relationship between the EU and the comprehensive and progressive agreement for trans Pacific partnership, because it is not just what happens on the continent of Europe that is important; it could be what happens in the Gulf or the situation in Ukraine, which had dramatic effects on supplies of fertiliser around the world. We take specific action to ensure that we guarantee those supply chains.
I call the shadow Minister.
Our most critical supply chains are those that are directly linked to our national security. From autonomous vehicles to blast protection, British small and medium sized enterprises are the vital link in the supply chain, ensuring that our armed forces have the capabilities to face down our adversaries. The Government have said that the Defence Office for Small Business Growth has an important role to play in supporting the sector, so how is the Minister co ordinating with the office? If I am a defence SME, how will it help me?
What is really important is the work that the Department for Business and Trade does in knitting together all our different policies—for instance the trade strategy, which looks at these issues, the critical minerals strategy, the small business strategy and the industrial strategy. All those need to mesh together. One of the key things we have done is to produce, for the first time, a growth driving inputs list that specifies the particular elements that are vital for SMEs’ growth into the future. That is precisely the kind of action that a Government need to take to guarantee economic growth for the future.
I am grateful for that very comprehensive answer to a very different question—less of an answer, more of an interpretive dance.
What’s wrong with interpretive dance?
I just want an answer! Defence SMEs have said that the delay of the defence investment plan caused great uncertainty and disruption to the sector. In addition, they are completely confused by this Government’s endless offices, initiatives and quangos. Will the Minister commit—if he is still in position in a few weeks’ time—to providing more certainty to such an important sector?
I know from my constituency and across south Wales how important it is to have a defence investment plan that delivers jobs across the whole of the United Kingdom. One of my anxieties about the previous Government was that they refused to take action either to invest in our armed forces or to ensure that we were able to produce things in the UK, rather than relying, for instance, on steel to produce everything that our armed forces need. That is why we introduced our steel trade measures earlier this week.
And there is nothing wrong with interpretive dance, Mr Speaker. As you know, the creative industries are an important part of our economic future, with 5% growth under this Labour Government.