DAVID Cameron will today be urged to back the North East's exporting strengths as business leaders from the region head to the CBI conference.
A delegation from the region will make clear to the Prime Minister, who is due to speak at the event, that he must offer more support to North East firms if he wants to see a £20bn boost in the UK economy’s exporting power by 2020.
The North East is one of the country’s top performers for the number of firms successfully selling their products abroad, but even here, fewer than 3% of firms export goods. CBI leaders nationally say the UK should aim to match the European Union (EU) average of one in four small to medium-sized enterprises exporting by 2020, compared with the current one in five.
Ministers will be told all new legislation must pass a test to see what impact, if any, it will have on helping firms to export.
Other changes the CBI say are needed include a new focus on helping regional airports grow, including a reduction in the air passenger duty levied on flights.
In its report, the CBI cites the impact of Newcastle Airport securing the Emirates route from Newcastle to Dubai as an example of the moves the Government needs to be making easier.
The report says the route, and onward connections to numerous long-haul business centres, has significantly enhanced the competitiveness of the region. Trade between the North East and Australasia has tripled from just over £100m in 2007, when the service started, to just under £300m in the last 12 months. Among those heading to London as part of the delegation are Greggs director Ken McMeikan, chair of CBI North East.
He said: “The CBI report ‘winning overseas’ highlights the potential for the North East to grow its economy by building on our strong export credentials.
“Critical to achieving this is having the right infrastructure to enable exporting. A delegation of North East business leaders will be attending the CBI national conference today to highlight to Government the positive impact the Emirates flight has had on North East exports to Australasia, tripling trade since 2007 to over £300m.
“Government has stated that they will not allow further air capacity in the South East and therefore the North East representatives will be seeking to ask the Prime Minister a number of things including to reduced air passenger duty for regional airports enabling us to secure a second long haul flight to unlock our proven export potential and allowing the region to rebalance its economy.”
He was backed by Sarah Green, director of CBI North East, who said: “The North East is a high performing exporter and is the only English region with a positive balance of payments.
“However, only around 2.1% of North East’s businesses export against a national average of approximately 3%, therefore there is a real growth opportunity for this region if we can utilise the expertise and connections of our successful exporters to support their supply chain and other small and medium sized businesses to look internationally.
“CBI will be setting up regional export clubs to help businesses both take the first step but also to look at new emerging markets.”
Minister for Trade and Investment Lord Green said: “The report by CBI and Ernst & Young is broadly welcomed.We have a national challenge to increase exports. This is a challenge for all of us – for Government, for business and for business organisations.
“Trade has been a drag on growth for far too long. We need more companies to start selling overseas and moving out of their comfort zones into high-growth markets.”
