HC Deb 23 July 1969 vol 787 cc1699-700
8. Mr. Hall-Davis

asked the President of the Board of Trade what study he has made of the effect on the economy of the trend towards the granting of longer trade credit for overseas transactions; and if he will make a statement.

Mr. Dell

The Chancellor of the Exchequer and my right hon. Friend keep this matter under constant review. In considering the length of credit we can offer for our exports, the need for a quick return to our reserves must be balanced by the need to maintain the competitive position of our exporters.

Mr. Hall-Davis

Has the Minister of State made an assessment of the effect on exports of any marginal variation in the rate of interest charged on special export lending to finance exports of ships and capital goods?

Mr. Dell

As a result of the competitive position, the proportion of exports which are on longer terms has increased. This is not as a result of any leadership which we have given in a credit race but is because it is necessitated by the competitive export position. The hon. Member will know about the O.E.C.D. understanding in respect of ships.

Mr. Dalyell

Does "constant review" imply that there has been recent discussion with the I.M.F. of the familiar link to help developing countries with credit?

Mr. Dell

No, Sir. The governing factor is the need to keep our exports competitive.

Sir K. Joseph

Do the Government continually compare the use of foreign exchange for long-term credit with the use of foreign exchange for overseas investment, which may produce income for this country rather quicker than long-term credit?

Mr. Dell

This is a balance of advantage which has to be kept under review, but we also have very much to take account of the need to press our exports forward, which requires the matching of other people's credit terms.