Wool Textile Industry (Export Promotion Levy) (Revocation) Order 2008

I thank the Minister for introducing the order, which is relatively uncontroversial. Given that it seeks to cut regulation, primarily regulation of small businesses, I have no difficulty in supporting it. To put it into perspective, the levy currently raises about £190,000 a year, which accounts for just over half of the National Wool Textile Export Corporation’s annual income. The average levy payment is just under £1,900 a year. Under the order, the corporation will see its budget cut by half. The department has stated that UKTI will work closely with the corporation to continue the promotion of wool exports. I have a couple of questions for the Minister. Will that funding shortfall need to be made up from the budget of UKTI? If so, will her department be providing UKTI with an increase in its budget? Does she believe that voluntary arrangements in the industry will cover the shortfall? Is it proposed simply to cease to make the expenditure at all? Removing unnecessary regulation from business and allowing firms to target their export promotion funding themselves could well be sensible steps. However, what measures, if any, has the Minister thought necessary to make to ensure that overseas promotion of the British wool industry remains focused and coherent? Only 44 per cent of the 91 current levy payers responded to the department’s consultation. Does the Minister believe that any steps could or should have been taken to encourage greater participation? As a matter of interest, can we expect similar revocation orders for export corporations for other industries in future? Having raised those relatively minor questions, as I said, we shall not stand in the way of this measure. However, I look forward to hearing the noble Baroness’s comments.