agenda advantage TheUK

Minister of State for Trade and Investment, Lord Green discusses the task ahead with David Parsley

HAVING ENJOYED a long and successful career in the banking world, Lord Green, former chief executive of HSBC Group, may have felt he deserved a break before embarking on his next career. But not for this man. Keeping busy was important to him, so when David Cameron called to offer a position as Trade Minister, the opportunity was too great to resist. “It was an honour to be asked to take on a portfolio so crucial to securing a meaningful, sustainable growth strategy for this country,” says Green. “Trade and investment are central to the core of a viable growth strategy in this country. During the run up to the crisis we had too much consumption fuelled by borrowing and from other sector-spending growth. We know we don’t want too much borrowing in the future, and we’re not going to get too much consumption as people consolidate their fi scal position. So growth can only come from external sources – trade and investment. That’s quite a challenge.” In these tough economic times, Green actually looks forward to the challenge. Despite being best known as a top banker, Green began his career with the Ministry of Overseas Development before joining management consultancy McKinsey & Co in 1977. In 1982, he took the fi rst step on his HSBC career ladder, beginning in the bank’s corporate planning department before heading up the global treasury department. He was appointed group treasurer in 1992, before being given a seat on the board in March 1998. Then, in 2003, he moved

to the chief executive’s suite before becoming chairman in 2006. With such an international background,

Green is highly aware of the importance of attracting big multinationals to the UK. But, why should they come here?

INFRASTRUCTURE NEEDS “We have a good story to tell,” says Green. “We are already one of the top three inward destinations for foreign investment globally. However, the market is very competitive. We have to ensure we remain as attractive a destination as possible for inward investment, whether it be from major international companies – from countries such as the US, Germany, Japan and increasingly India and China – or from sovereign wealth funds looking for an opportunity to invest in things like infrastructure.” Infrastructure is one of the challenges facing the Coalition Government, but, having rejected proposals for a third runway at Heathrow Airport, what can the UK do to improve its working environment and attract overseas fi rms? Green agrees the UK has a signifi cant infrastructure investment need over the next 20 years: “The map of our needs, drawn up by Infrastructure UK, tells the story. Our investment need for transport, energy or broadband infrastructure averages about £40bn a year for the next ten years. That’s not far short of doubling the rate of investment we have at the moment, and this is in circumstances when the Government is not going to be able to write those kind of cheques. >

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