3 March 2009
Geoffrey Clifton-Brown raises his concerns about nationalisation and the effects this has on the economy of countries in latin America.
Mr. Geoffrey Clifton-Brown (Cotswold) (Con): I understand why the hon. Gentleman has concentrated on Bolivia, but he has not said much about his old friend, President Chavez of Venezuela. Does he think that seizing assets by nationalisation, whether in Venezuela or Bolivia, will encourage investment in delivering mineral resources, which in turn benefit the people through trade and exports?
Jeremy Corbyn: I have spoken for 35 minutes, and the hon. Gentleman tempts me to speak for another 35 minutes about Venezuela.
...
Mr. Clifton-Brown: The hon. Member for Islington, North (Jeremy Corbyn) seemed to think that the whole nationalisation debate was about a virility symbol and whether sovereign countries have the right to take those assets. Of course they have that right. The question is whether it is wise to deploy it. If the private sector sees assets being taken with no money being paid for them, that affects not only the minerals sector, which is directly affected, but the whole economy, because other countries will not want to invest in those economies and therefore the standard of living of those peoples suffers as a result.
Mark Pritchard: My hon. Friend makes an excellent point, as he always does. The other relevant point is that there is a direct impact on constituents in Islington, Shropshire and everywhere else represented here, because there are pension investments in those countries and for every industry that is nationalised, there is a direct impact on pension funds in the City of London as well. It is a very worrying step that President Chavez has taken deciding to move into food production and food supply and, as we have heard, to renationalise rice production in his country.
...
Mr. Clifton-Brown: I am grateful to my hon. Friend for giving way, as he has so little time. Does he not agree that the EU-south American ministerial meeting in May this year in Prague will be an ideal opportunity to make progress on that front? Will he press the Minister to say what progress can be made, particularly in the Doha round, which will benefit disproportionately some of the poorer countries of south America?
Mr. Lidington: My hon. Friend makes a strong point, and I hope that if the Minister does not have time to reply in detail she will write to Members.
...
Mr. Clifton-Brown: Of the 20 generally recognised Latin American countries, the UK runs a balance-of-trade deficit with 11. Does the Minister agree that the scope for greater trade with south America is huge? What extra efforts can the Government make in that respect?
Gillian Merron: I would certainly agree. My visit to Brazil showed me those great opportunities to which hon. Members have referred. All our posts in the region have very clear business plans. Cross-Whitehall mechanisms exist, especially for our Brazil and Mexico strategies, but we can do more, and UK Trade & Investment plays a big role in that.
| Hansard
Mr. Geoffrey Clifton-Brown (Cotswold) (Con): I understand why the hon. Gentleman has concentrated on Bolivia, but he has not said much about his old friend, President Chavez of Venezuela. Does he think that seizing assets by nationalisation, whether in Venezuela or Bolivia, will encourage investment in delivering mineral resources, which in turn benefit the people through trade and exports?
Jeremy Corbyn: I have spoken for 35 minutes, and the hon. Gentleman tempts me to speak for another 35 minutes about Venezuela.
...
Mr. Clifton-Brown: The hon. Member for Islington, North (Jeremy Corbyn) seemed to think that the whole nationalisation debate was about a virility symbol and whether sovereign countries have the right to take those assets. Of course they have that right. The question is whether it is wise to deploy it. If the private sector sees assets being taken with no money being paid for them, that affects not only the minerals sector, which is directly affected, but the whole economy, because other countries will not want to invest in those economies and therefore the standard of living of those peoples suffers as a result.
Mark Pritchard: My hon. Friend makes an excellent point, as he always does. The other relevant point is that there is a direct impact on constituents in Islington, Shropshire and everywhere else represented here, because there are pension investments in those countries and for every industry that is nationalised, there is a direct impact on pension funds in the City of London as well. It is a very worrying step that President Chavez has taken deciding to move into food production and food supply and, as we have heard, to renationalise rice production in his country.
...
Mr. Clifton-Brown: I am grateful to my hon. Friend for giving way, as he has so little time. Does he not agree that the EU-south American ministerial meeting in May this year in Prague will be an ideal opportunity to make progress on that front? Will he press the Minister to say what progress can be made, particularly in the Doha round, which will benefit disproportionately some of the poorer countries of south America?
Mr. Lidington: My hon. Friend makes a strong point, and I hope that if the Minister does not have time to reply in detail she will write to Members.
...
Mr. Clifton-Brown: Of the 20 generally recognised Latin American countries, the UK runs a balance-of-trade deficit with 11. Does the Minister agree that the scope for greater trade with south America is huge? What extra efforts can the Government make in that respect?
Gillian Merron: I would certainly agree. My visit to Brazil showed me those great opportunities to which hon. Members have referred. All our posts in the region have very clear business plans. Cross-Whitehall mechanisms exist, especially for our Brazil and Mexico strategies, but we can do more, and UK Trade & Investment plays a big role in that.
| Hansard
