{"id":71524,"date":"2016-06-20T15:34:00","date_gmt":"2016-06-20T15:34:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=e773ddcdad8934b1be62ed358c2dee91"},"modified":"2016-06-20T15:34:00","modified_gmt":"2016-06-20T15:34:00","slug":"speech-from-the-northern-powerhouse-to-global-trade","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=71524","title":{"rendered":"Speech: From the Northern Powerhouse to global trade"},"content":{"rendered":"
\n

It\u2019s great to be back in Liverpool and at the International Festival of Business (IFB<\/abbr>) for the second time in a week.<\/p>\n

I was going to start today with a little joke about tonight\u2019s football.<\/p>\n

But following the tragic murder of Jo Cox last week, politics doesn\u2019t really feel like the place for humour right now.<\/p>\n

Jo\u2019s murder was a heinous attack on a talented, committed young woman.<\/p>\n

It was an attack on a wife, a mother, a daughter.<\/p>\n

And it was also an attack on the principles on which this country is built, on the idea that we choose democracy over violence.<\/p>\n

Hatred doesn\u2019t begin with violence and murder.<\/p>\n

That\u2019s where, left unchecked, it reaches its natural conclusion<\/p>\n

But when we know where hatred leads we can stop it in its tracks.<\/p>\n

And all of us who believe in democracy have a duty to do just that.<\/p>\n

Exactly 197 years ago, on the 20 June 1819, cheering crowds greeted the SS Savannah as she docked here in Liverpool.<\/p>\n

Her arrival marked the end of the first-ever steam-powered journey across the Atlantic, and the beginning of a new era for international trade.<\/p>\n

It was a time when the north of England was at the heart of the global economy.<\/p>\n

Factories produced goods on an industrial scale.<\/p>\n

And ports like Liverpool, Tyne, and Hull shipped them to markets around the world.<\/p>\n

A century and a half later, and with considerably less fanfare, a guy named Abdul Ghani-Javid arrived at the other end of the ship canal, in Manchester.<\/p>\n

He was my dad, fresh from Pakistan.<\/p>\n

And, like many of his fellow immigrants, he was drawn to the north of England because it was still the powerhouse of British industry.<\/p>\n

Still making what the world wanted, and still doing it better than anyone else.<\/p>\n

That was back in 1961.<\/p>\n

Business was booming, everything looked rosy.<\/p>\n

But it wasn\u2019t to last.<\/p>\n

By the end of the decade exports were falling, imports were rising and the mills and factories were beginning to close.<\/p>\n

Liverpool\u2019s once bustling docks fell into disuse and disrepair.<\/p>\n

Since then, of course, the individual cities of the north have bounced back.<\/p>\n

You just need to look at this brand-new, \u00a365 million conference centre to see how Liverpool has found a new lease of life.<\/p>\n

Manchester has become a thriving media hub.<\/p>\n

Newcastle and Gateshead have been reinvented as cultural capitals.<\/p>\n

But the success of the great northern cities has happened in isolated pockets.<\/p>\n

Individual cities and local authorities acting alone, even in competition.<\/p>\n

A lack of co-ordination and shared infrastructure has meant that the north has been less than the sum of its parts.<\/p>\n

And that has had a really serious impact on the region\u2019s businesses.<\/p>\n

Between 1981 and 2013, economic growth in most of northern England was well below that of the UK average.<\/p>\n

Productivity is lower than the UK as a whole.<\/p>\n

16% lower here in the north-west.<\/p>\n

20% in Yorkshire and the Humber.<\/p>\n

And a massive 27% in the north-east.<\/p>\n

A lack of investment in skills left the north-east with an unemployment rate more than twice that of the south-east.<\/p>\n

And outdated, overcrowded transport links mean northern businesses are quite literally being left behind.<\/p>\n

That\u2019s something this government is not prepared to tolerate.<\/p>\n

Which is why we\u2019re working with business and local government to create the Northern Powerhouse.<\/p>\n

Across the whole region we\u2019re investing in science and technology.<\/p>\n

We\u2019re investing in transport, in innovation, in digital.<\/p>\n

We\u2019re investing in culture and tourism.<\/p>\n

And we\u2019re devolving real power, giving the north a powerful new voice.<\/p>\n

For example, the directly elected mayor of Liverpool has been described as holding the most powerful political post outside London.<\/p>\n

So the Northern Powerhouse isn\u2019t just being built with warm words.<\/p>\n

It\u2019s not some short-term marketing campaign.<\/p>\n

It\u2019s a serious vision for the future of the north.<\/p>\n

And it\u2019s a vision that has the potential to pay incredible dividends for the region.<\/p>\n

If the north grew at the same rate as is forecast for the rest of the UK the economic potential is huge.<\/p>\n

We could add \u00a337 billion to the economy by the end of the next decade.<\/p>\n

Here in the north-west it would mean a boost of \u00a32,000 for every man, woman and child.<\/p>\n

And that would be great news for businesses of all sizes.<\/p>\n

But we\u2019re not going to get there simply by looking inwards.<\/p>\n

Yes, the Northern Powerhouse will make it easier for Liverpool to do business with Manchester.<\/p>\n

For Leeds to link up with Sheffield. But the real gains are to be made by connecting northern businesses with the rest of the world.<\/p>\n

For too long the big names, the high-street brands and the giant multinationals have monopolised the arena of international trade.<\/p>\n

Small and medium-sized enterprises (SMEs<\/abbr>) make up 99% of all British businesses.<\/p>\n

They provide the vast majority of Britain\u2019s private sector jobs.<\/p>\n

But they only account for a small fraction of exports.<\/p>\n

Only 1 in 5 British SMEs<\/abbr> export at all \u2013 across the EU, the average is 1 in 4.<\/p>\n

Things are particularly bad for the medium-sized firms.<\/p>\n

Only 34% of British mid-sized companies export.<\/p>\n

In Germany the figure is 68%; in Spain it\u2019s 85%.<\/p>\n

It\u2019s a huge missed opportunity.<\/p>\n

Last year, researchers found that up to 150,000 SMEs<\/abbr> that could be exporting are not doing so.<\/p>\n

Yet if they embraced that opportunity, if they made the most of their potential, it wouldn\u2019t just be good news for the exporters.<\/p>\n

The benefits of bigger sales would be felt all the way down the supply chain and right across the community.<\/p>\n

Why are small businesses limiting their ambitions?<\/p>\n

While the specifics vary from business to business and sector to sector, there are some key issues that I come across again and again.<\/p>\n

First is a simple lack of awareness.<\/p>\n

SMEs<\/abbr> don\u2019t have agents and networks and feelers right around the world.<\/p>\n

For too long it has been too hard for them to even find out that an export opportunity exists, never mind make the most of it.<\/p>\n

Second is a lack of finance.<\/p>\n

Many SMEs<\/abbr> lack the resources to engage with the international markets, or don\u2019t know where to turn to access it.<\/p>\n

Finally, there\u2019s a lack of confidence.<\/p>\n

Too many British SMEs<\/abbr> don\u2019t have a culture of exporting, it\u2019s not something they\u2019re used to.<\/p>\n

And when you\u2019re running a small firm with tight margins, it can be exceptionally hard to justify a step into the unknown.<\/p>\n

So there are some big challenges.<\/p>\n

But none are insurmountable.<\/p>\n

They can be overcome.<\/p>\n

And as Business Secretary, my views are very clear.<\/p>\n

If a UK business wants to export to its full potential, there should be nothing to stop it from doing so.<\/p>\n

That\u2019s why this government is working hard to support SMEs<\/abbr> that want to dip their toes into the international market.<\/p>\n

That support comes in many forms.<\/p>\n

At the top of the tree is a whole new approach to exporting.<\/p>\n

For years, governments saw it simply as a matter for my department, the business department.<\/p>\n

But that\u2019s a much too narrow view.<\/p>\n

Under this administration, boosting international trade is a responsibility shared by the whole of government.<\/p>\n

So the Home Office looks at how the visa system can help.<\/p>\n

The Department for Transport makes sure UK business travellers can connect with the world.<\/p>\n

The Department for Health offers its support to med-tech firms. And so on.<\/p>\n

All that comes together in the cross-government Exports Implementation Taskforce, which I chair.<\/p>\n

One of the first initiatives to come out of that taskforce was Exporting is GREAT.<\/p>\n

Launched in November, it\u2019s a 5-year, multi-million pound campaign to boost Britain\u2019s overseas trade.<\/p>\n

At its heart, and particularly useful for SMEs<\/abbr>, is a website listing current export opportunities right around the world<\/a>.<\/p>\n

Updated in real time, it tells you what\u2019s needed where and how to go about supplying it.<\/p>\n

I checked this morning and there are currently almost 2,000 export opportunities listed, many of them perfect for SMEs<\/abbr>.<\/p>\n

A government agency in Jamaica needs marine fenders and bollards.<\/p>\n

A Peruvian construction firm has a tender out for protective workplace clothing.<\/p>\n

There\u2019s even a supermarket chain in Argentina that wants to stock British jam!<\/p>\n

It\u2019s all there on exportingisgreat.gov.uk<\/a> \u2013 go take a look.<\/p>\n

Of course, even in 2016 you can\u2019t just build business relationships from behind a computer screen.<\/p>\n

It still helps to get boots on ground.<\/p>\n

That\u2019s why I led the first ever Northern Powerhouse trade mission, taking a range of SMEs<\/abbr> to Singapore and Malaysia last year.<\/p>\n

We had 50 companies spending 3 days in the 2 countries.<\/p>\n

And we built countless contacts that will help boost business for years to come.<\/p>\n

But trade missions aren\u2019t your only opportunity to engage overseas.<\/p>\n

A year from now, Kazakhstan will be playing host to an international expo in its capital, Astana<\/a>.<\/p>\n

The UK will be one of 75 countries hosting pavilions, with delegates attending from many more.<\/p>\n

The overarching theme is \u2018Future Energy\u2019, but that doesn\u2019t mean it\u2019s only open to the BPs and Shells of the world.<\/p>\n

There are opportunities for SMEs<\/abbr> working in any aspect of oil and gas, renewables, education, financial services and more.<\/p>\n

It\u2019s an amazing opportunity to put your business in front of 5 million visitors from familiar and emerging economies.<\/p>\n

So if you want to be a part of that, get hold of one of the UK Trade and Investment staff here at the festival.<\/p>\n

In fact, get in touch with UKTI<\/a> if you need any help at all with exporting.<\/p>\n

They have an expert presence in markets around the world \u2013 and it\u2019s their job to help you succeed.<\/p>\n

So we\u2019re providing information about export opportunities and practical support to make the most of them.<\/p>\n

And we\u2019re also helping with that tricky financial side.<\/p>\n

Through UK Export Finance<\/a>, the nation\u2019s export credit agency, we are helping small firms to minimise the financial risks of overseas trade.<\/p>\n

Accessing working capital to fulfil export orders and making sure an overseas buyer will pay on time can be particularly daunting for SMEs<\/abbr>, so we are increasingly focussing support on them.<\/p>\n

And we are improving UK finance markets through the British Business Bank<\/a>.<\/p>\n

It\u2019s currently supporting over \u00a31.8 billion of finance to over 40,000 smaller businesses, and a further \u00a31.4 billion of finance to small mid-cap businesses.<\/p>\n

Together, it all adds up to a wide-ranging package of support for small northern businesses that want to export.<\/p>\n

The opportunities are out there, and you could be too.<\/p>\n

[Content relating to the EU referendum removed]<\/p>\n

Exports and growth go hand in hand.<\/p>\n

That was true back in the days of the SS Savanah, and it\u2019s true today.<\/p>\n

The history of Liverpool is built on international trade, and that\u2019s where its future lies.<\/p>\n

The same applies right across the north, from Sheffield to Sunderland.<\/p>\n

Exporting can really put the power into the Northern Powerhouse.<\/p>\n

And it\u2019s not just for the big names.<\/p>\n

Exporting is for you, too.<\/p>\n

Today\u2019s customers don\u2019t think twice about going online and finding the best product at the best price, even if that means ordering from the other side of the world.<\/p>\n

It has never been easier for SMEs<\/abbr> to start exporting, and the potential rewards have never been greater.<\/p>\n

Exporting is great for your business, it\u2019s great for your bottom line, it\u2019s great for your employees and it\u2019s great for the north.<\/p>\n

So if you\u2019re running an SME with export potential, I only have one thing to ask.<\/p>\n

What are you waiting for?<\/p>\n

Thank you.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Business Secretary Sajid Javid explains how exporting can help small businesses build the Northern Powerhouse.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/71524"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71524"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/71524\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71524"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}