HC Deb 20 November 1952 vol 507 cc2034-6
31. Mr. Edelman

asked the President of the Board of Trade whether his attention has been called to the difficulties confronting British exporters, particularly in the motor industry, as a result of export subsidies, overt and concealed, offered to foreign competitors by their national governments; and what protests he has made against these unfair practices.

Mr. Mackeson

I am aware that certain export incentive schemes introduced by foreign Governments may be among the factors contributing to the increased competition which the motor vehicle and other industries are meeting in overseas markets. Her Majesty's Government are opposed to the use of export subsidies, overt or concealed, and in all inter-Governmental discussion of this subject it will remain their constant endeavour to secure that the freedom of Governments to use such subsidies is strictly limited.

Mr. Edelman

While thanking the hon. Gentleman for that reply, may I ask whether he is aware of the serious decline in motor exports due partly to German competition which has been aided by export bonuses and taxation remissions? In particular, has he seen the resolution of the International Monetary Conference protesting against these measures, and will he say what support Her Majesty's Government have given to the protest by the Conference?

Mr. Mackeson

Our representative gave the very strongest support. I have seen the resolution, and I can assure the hon. Gentleman that Her Majesty's Government regard this as a serious matter. I should also like to say that I know that neither industry nor hon. Members would wish us to take any action which might encourage a mad subsidy race in the world.

32. Mr. Edelman

asked the President of the Board of Trade whether his attention has been called to the difficulties confronting British exporters, particularly in the motor industry, as a result of the more favourable credit facilities offered by their foreign competitors; and whether he will request the Export Credits Guarantee Department to adopt a more liberal policy in order to deal with such competition on a basis of equality.

Mr. Mackeson

The Export Credits Guarantee Department is not responsible for determining, for exchange control purposes, what credit facilities British exporters may offer. That is a matter for the Treasury acting on the advice of the Foreign Exchange Control Committee.

As my right hon. Friend said on 5th November, during the debate on the Address, applications to offer extended credit terms are being dealt with sympathetically and Her Majesty's Government is fully aware of the importance of maintaining the competitiveness of United Kingdom manufactures in overseas markets.

I am not aware that, within the limits approved by the Treasury, E.C.G.D. in any way restrict the terms of payment on transactions covered by their guarantee. If the hon. Member has evidence of any such cases I shall be pleased to look into them. The hon. Member will, of course, realise that the cover E.C.G.D. can provide must be related to the capacity of overseas buyers to meet their obligations.

Mr. Edelman

To illustrate my Question, may I ask whether the hon. Gentleman is aware of the difficulties being experienced by exporters of commercial vehicles in competition with foreign sellers of comparable vehicles, in that they find that the customers who have to write off the value of the vehicles require long-term credits, and that, in certain cases, particularly in South America, customers are receiving five- and 10-year credits which are not available for British products?

Mr. Mackeson

I am aware of that. The hon. Gentleman will also be aware that in the case of the South American countries we have gone very wide, and the time will come when the House will have to face a Supplementary Estimate in connection with these credits.