HC Deb 24 October 1935 vol 305 cc320-1
90. Sir DOUGLAS THOMSON

asked the Secretary to the Overseas Trade Department whether, in view of the difficulties experienced by British exporters in obtaining sterling payment by reason of exchange and other restrictions abroad, the Government can give any assistance through the Export Credits Guarantee Department to British traders in this respect?

Lieut.-Colonel COLVILLE

Yes, Sir. The Export Credits Guarantee Department is now prepared to provide some protection against the risk of frozen debts in future. It will do this by a guaranteeing payment in sterling within a definite period for exports of United Kingdom goods. The general conditions of this arrangement are too long to explain here and I will, with the hon. Member's permission, circulate a statement.

Mr. HENDERSON STEWART

Since when has this new arrangement been in force?

Lieut.-Colonel COLVILLE

It is just coming into force now,

Following is the statement:

  1. 1. The Export Credits Guarantee Department is prepared to issue policies ensuring that exporters of United Kingdom goods will be paid in sterling within a definite period. This period will normally be six months after the due date for payment.
  2. 2. The guarantee will cover all shipments coming within the terms of the policy which are made within three months after the issue or extension of the policy.
  3. 3. The guarantee will extend to 75 per cent. of the sterling value of the goods, and the Department will have a first charge on ultimate receipts.
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  4. 4. A small premium will be charged, and certain conditions will be imposed. The scheme is designed to be self-supporting.
  5. 5. It will be necessary for the solvency of the overseas buyer to be insured under the existing facilities of the Export Credits Guarantee Department, and for the exporter to comply with the exchange regulations of the country to which the goods are sent.
  6. 6. The facilities will only apply where goods are invoiced in terms of sterling. No protection is offered against the risk of fluctuations in a foreign currency.
  7. 7. The guarantees will not he available for all countries, as there are certain countries in which the exchange conditions render the application of this scheme at present impracticable.