HC Deb 04 February 2002 vol 379 cc644-5W
Mr. Stinchcombe

To ask the Secretary of State for Trade and Industry what the net cash outflow was from the Export Credits Guarantee Department attributable to defence exports in the financial years (a) 2000–01 and (b) 2001–02 broken down by (i) cost of interest rate support, (ii) claims paid, (iii) interest paid and (iv) operating expenses proportionate to defence related business. [27214]

Ms Hewitt

The following table details claims paid and premium earned for the financial years 2000–01 and 2001–02 to date in respect of defence related business. The cost of interest rate support has been estimated on the proportion of ECGD credit business constituted by defence related business. As for the further information my hon. Friend requests on operating expenses, I am afraid ECGD does not hold its records on a basis which would enable it to provide the level of details he has requested. It would involve disproportionate costs to produce it.

£ million
2000–01 2001–021
Premium earned 38 3
Claims paid 181 86
Estimate of interest rate support 4 7
1 Provisional figures, which may change considerably throughout the rest of the year.

The claims figures relate mostly to business with Indonesia that has been rescheduled and which ECGD expects to recover in the fullness of time. These claims are in respect of business supported before the years indicated.

Mr. Stinchcombe

To ask the Secretary of State for Trade and Industry what the level of Export Credits Guarantee Department coverage for arms sales was in the financial years,(a) 1997–98, (b) 1998–99,(d) 2000–01 and (e) 2001–02.

Ms Hewitt

According to ECGD's published annual reports the level of ECGD support for defence business in each of the years was as follows:

£ million
1997–98 763
1998–99 1,700
1999–2000 1,583
2000–01 2,735

The level of ECGD support for defence business in 2001–02 amounts to £31 million up to 31 December 2001.