§ 10. Mr. Dellasked the Chancellor of the Exchequer whether, as part of the Government's programme for the promotion of exports, he will arrange the availability of cheap export finance to cover periods of credit of less than three years.
§ Mr. CallaghanThe extesion of the fixed 5½ per cent. interest rate down to credits of two years for certain contracts has already been announced. The possibility of still further improvements remains under active study.
§ Mr. DellWhile welcoming the advance which has been made since I put down the Question, may I ask whether there is any reason why there has to be any lower limit to the credit period? Why cannot we arrange cheap export finance irrespective of the period of credit?
§ Mr. CallaghanIt is not quite as simple as that. We want also to get payment as soon as we can and an excessive extension of credit facilities on too easy terms might discourage early payment. We have, therefore, to try to effect a balance.
§ Mr. BessellIn any review which he makes, will the Chancellor consider the needs of the small export companies, who are finding it difficult to obtain export credit facilities?
§ Mr. CallaghanYes, certainly. The present figure is, I think, £50,000. I certainly do not close my mind to any improvements that will stimulate exports in any direction. There are no sacred cows in this field.