HC Deb 29 June 1983 vol 44 cc565-6
6. Mr. Chapman

asked the Secretary of State for Trade and Industry if he is satisfied with the operation of the export credits guarantee scheme.

The Under-Secretary of State for Trade and Industry (Mr. Alexander Fletcher)

The Export Credits Guarantee Department's operations are kept under constant review and changes introduced where appropriate.

Mr. Chapman

In the current talks between the Export Credits Guarantee Department and the British Consultants Bureau to iron out problems relating to extended credit finance, will my hon. Friend use his good offices to ensure a successful conclusion, bearing in mind the enormous contribution that British consultants in the construction industry working abroad make to our economy, as shown by the fact that last year they brought in more than £800 million net in invisible earnings?

Mr. Fletcher

I am glad to pay tribute to the export work done by consultants on behalf of United Kingdom industry. We have had a number of reports recently regarding the work of the ECGD and we shall be happy to consider them very carefully.

Mr. Skinner

Does the Minister agree that, as a result of the so-called fair winds of competition, the ECGD has run into a gale and ended up bankrupt and on its knees? Will the Minister enjoy using massive Government intervention to rescue it?

Mr. Fletcher

The hon. Gentleman presents an entirely false picture. The ECGD had record claims last year, which must bear some relation to the record exports that this country produced, but it is continuing to meet those claims from its reserves.

Mr. Eggar

Will hon. Friend confirm that it remains a key priority for the Government to reach a consensus about the rates that should be charged by export credit agencies throughout the world?

Mr. Fletcher

Yes, that is a very important part of our export policy.

Mr. Archer

Does the hon. Gentleman agree with the export credit committee of the CBI that if jobs are to be saved exporters need more comprehensive and effective support from export credit? If the consensus on interest rates breaks down, will not exporters be even more at risk from subsidised foreign competition? Does the hon. Gentleman accept that the ECGD is a cost-effective instrument for making Britain more competitive? Despite the machinations of the Treasury, will he give an undertaking that that effectiveness will be preserved?

Mr. Fletcher

We have no intention of reducing the importance of the ECGD's activities. On the consensus arrangements, the Paris talks are still in progress. We hope that they will reach a satisfactory conclusion