BEAMA has again highlighted its concerns about the Government considering cuts to the Support for Exhibitions and Seminars Abroad (SESA) scheme, run by UK Trade and Investment - UKTI) budget, and limiting the scheme's future support to new exporters only:
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The
British Electrotechnical and Allied Manufacturers' Association (
BEAMA) is backing Conservative Party support for the continuation of
SESA. Proposed cuts in Government funding for export promotion and development work carried out by industry trade organisations would mean severe reductions in help for small and medium sized British manufacturers.
SESA has not been affected by the budgetary limitations suggested by the James Report, which seeks to reduce enormous waste at Whitehall and beyond.
The report investigated total departmental costs, including those of the DTI and FCO, both of which are responsible for UKTI.
BEAMA dismayed by Government cut back intentions:
BEAMA president Richard Dick said: "We are dismayed that the Government still intends to cut funding to many firms looking to develop sales globally by exhibiting abroad.
"We welcome the Conservative Party's support for continuation of the SESA scheme. SESA should be retained in its current form, available to all small-to-medium size companies seeking to develop their export activities.
"The Tories believe UKTI should focus solely on export development. The Party is right when it says the expertise of the trade associations currently administering SESA is invaluable. There is considerable misinformation being propagated by the Government about the Conservative position on UKTI."
Richard Dick continued: "SESA offers a most effective business support scheme via the DTI. The practical and financial support it provides for businesses is essential. When funding is reduced, trade associations and chambers of commerce will be unable to offer this support. With firms forced to cut back on attending exhibitions overseas, business opportunities and sales will he hard hit."
Assisting many SMEs:
BEAMA is working with the Sponsors Alliance, which represents over 50 UK trade associations/chambers of commerce. During 2005, these organisations will assist over 9,000 small-to-medium size companies in exporting goods and services - already 20% fewer than 2004.
It is estimated the number of companies benefiting from support could fall by 60+% by 2006/7, with significant loss of export revenue. The Treasury has imposed significant cuts beyond 2007, which will reduce direct assistance to only £8m from the current £20m.
Yet UKTI has recruited hundreds of international trade advisors, to be based with Regional Development Agencies (RDAs) at a cost of £8m. It is in the process of recruiting more.
Ineffective quangos:
Richard Dick: "There's been much recent criticism of quangos in the media, and RDAs are a another prime example of the Government's further mushrooming of unnecessary quangos, which will prove ineffective.
"None of these advisors will offer the same industry knowledge as trade associations - this vital element in the success of export activities at overseas exhibitions/trade missions will be lost forever. At present, UKTI gets a huge amount of added value from accredited trade organisations delivering the scheme."
The Sponsors Alliance says that devolving this activity to the regions means that trade associations will cease having any direct funding through the SESA scheme. Many will be forced to close their export services departments.
BEAMA's president adds: "Manufacturing exports contribute almost 20% of GDP to the UK economy. £20m is a small amount to support small-to-medium sized companies with export activities. Hundreds of service industry companies, which also export these services, will lose out if SESA funding is cut.
"The new proposals will increase bureaucracy, reduce the effective industry expertise and risk a loss of national identity at overseas events. It will also divert some funds to assist inward investment from foreign companies.
"When other EU countries are increasing their support we are reducing assistance to UK companies - we should be increasing our efforts."
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