§
Motion made, and Question proposed,
That a Supplementary sum, not exceeding £200,000, be granted to His Majesty, to defray the charge which will come in course of payment during the year ending on the 31st day of March 1940, for guarantees given after consultation with the Export Guarantees Advisory Council and for the salaries and expenses of the Export Credits Guarantee Department.
§ 8.15 p.m.
§ Mr. R. S. Hudson (Secretary, Overseas Trade Department)The reason why I have to appear to-day to ask for this Supplementary grant is the fact that this year for the first time in its history the Export Credits Guarantee Department's income from premiums is not expected to be sufficient to defray the expenses of the Department and the claims likely to fall upon it. The causes are twofold. In the first place the premium income is unlikely, so far as we can judge at present, to come up to the figure we had originally anticipated. Our business is extremely varied and some business is more profitable than others. This year, unfortunately, although the total turnover of the Department so far is substantially in excess of that for the corresponding period last year, the amount of more profitable business included in the turnover is smaller and the amount of less profitable business is greater. Therefore we anticipate that the premium income will not be as great as we had estimated.
On the other side we have agreed, largely in order to try and help our exporters, to meet claims falling due as a result of the outbreak of war, and more particularly as a result of the invasion of Poland and Czecho-Slovakia by Germany. The amount that we are providing this year will not suffice for the whole of the claims, and substantial sums will fall due to be paid next year. Those sums will, of course, be included in the Estimate which in due course will be laid before the House. Those are the chief reasons for the Supplementary Estimate.
§ Question put, and agreed to.
1651
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Resolved,
That a Supplementary sum, not exing £200,000, be granted to His Majesty, to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1940, for guarantees given after consultation with the Export Guarantees Advisory Council and for the salaries and expenses of the Export Credits Guarantee Department.