HC Deb 17 June 1954 vol 528 cc2250-2
7. Sir R. Boothby

asked the President of the Board of Trade whether his attention has been drawn to the statement in the Annual Report of the Herring Industry Board that lack of support from Her Majesty's Government has resulted in the total loss of the Israeli market for cured herring to our competitors; and what action he proposes to take.

Mr. Amory

I have seen the report to which my hon. Friend refers. I very much regret the loss of this trade, but Israel is very short of sterling and other exchange and we cannot determine the way in which Israel lays out her scarce foreign exchange. I am afraid, therefore, that there is not at present any action that Her Majesty's Government can usefully take in this matter.

8. Sir R. Boothby

asked the President of the Board of Trade whether he is aware that the continued refusal of the Export Credits Guarantee Department to underwrite exports of cured herring has resulted in the loss of valuable oversea markets, particularly in the Middle East, to our competitors; and whether he will arrange for some relaxation of the stringent conditions at present applied to this commodity, which render it impossible for herring exporters to take advantage of the facilities which are available to other industries.

Mr. Amory

The Export Credits Guarantee Department is prepared to underwrite exports of cured herring sold on normal short credit terms. I know of no change in circumstances since the reply given to my hon. Friend by my right hon. Friend the Chancellor of the Exchequer on 19th May, 1953, which would justify giving guarantees for sales on longer credit terms than are given for comparable consumer goods or for any other modification of E.C.G.D. conditions.

The Department is, however, prepared to discuss with the herring industry any new problem which may now be facing them and to seek to provide appropriate facilities.

Sir R. Boothby

Is my right hon. Friend aware that the conditions at present imposed by E.C.G.D. are largely responsible for our failure to hold the Israeli market? Will he look into the whole business of the conditions that have been imposed at present upon this industry by E.C.G.D., having the Israeli market particularly in mind, because it is the lack of credits which has lost us this market to the Dutch?

Mr. Amory

I am prepared to agree that that is one of the factors involved in the loss of this business. Certainly, I will have another look at it, but I am not hopeful that we can do anything more. I agree that herrings are a capital form of food, but they are not capital goods, and I think that the ordinary normal limits for consumer goods is appropriate to herrings. It would be most unsound to keep them.