Power Plant Industry

HC Deb 14 February 1977 vol 926 cc22-3

19. Mr. Mike Thomas

asked the Secretary of State for Trade whether he will make a statement on the proposals to help the export efforts of the electrical power plant industry made in the CPRS Report.

26. Mr. Whitehead

asked the Secretary of State for Trade what conclusion he has reached on the CPRS Report into the power generating industry with respect to further assistance for exports.

Mr. Meacher

The Government are considering very carefully the recommendations of the CPRS Report on the United Kingdom power plant industry, and the question of export assistance is part of that consideration.

Mr. Thomas

Is my hon. Friend aware that the CPRS Report made it clear that a stable home ordering programme is a condition of export success? Is he aware also that the report made certain comments about turnkey contracts and export finance which require very detailed talks? Is he further aware that, despite the deletion of some parts of the report on, I am sure, legitimate grounds of commercial confidentiality, it is no secret that many of our competitiors in this area cheat? What is my hon. Friend doing about it?

Mr. Meacher

Questions on a steady domestic ordering programme and the other main recommendations of the CPRS Report are primarily a matter for my right hon. Friend the Secretary of State for Industry. The question of export aid in regard to turnkey problems is a matter for the National Enterprise Board, which is carefully examining it. I hope that we shall be able to make an announcement very soon on the question of general export aids, but I cannot prejudge today the outcome of our study of the report. The question of practices by our overseas competitors in respect of assistance for power plant exports is also one into which we are looking carefully. If my hon. Friend has any evidence, we will take it up with the countries concerned.

Mr. Whitehead

Will not my hon. Friend accept that "soon" must mean soon—in other words, the end of the month or thereabouts—if we are to defeat the problems faced by the industry? Does he not accept that there are fears that overseas competitors, particularly on Middle East contracts, are putting out hard-nosed, commercial propositions masquerading as aid? Will he take up this matter if specific examples are brought to his notice?

Mr. Meacher

I have already indicated that we will take up these matters if they are brought to our notice. On the subject of the mixing of aid concessions and hard-nosed trade credit, we are aware that in France the policy involves crédit mixte, a system which we do not operate in this country on the reasonable ground that it leads to war in terms of export subsidy. We believe that the better policy is to try to obtain international agreement to withdraw such aid. Where there are particular cases in which softer terms are offered, the ECGD will examine the matter without prejudice. Where we feel that it is right and proper, we shall match such an effort.

Mr. Rost

Does the Minister believe that to force the power plant industry into one massive monopoly supplier will assist the consumer?

Mr. Meacher

That was the recommendation of the CPRS Report, and we are examining it.