HC Deb 29 February 1984 vol 55 cc237-8
1. Mr. Chope

asked the Secretary of State for Trade and Industry by how much the premium income of the Export Credits Guarantee Department from business with Nigeria in each of the last three years has exceeded claims made in the same period; and whether he will make a statement.

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

ECGD premium income on Nigeria exceeded gross claims by £7.8 million in 1981 and by £27.1 million in 1982. In 1983, by contrast, gross claims exceeded premium income by £4.4 million. I have no further statement to make.

Mr. Chope

Is my hon. Friend aware that the restrictions on cover for Nigerian business are causing great anxiety to exporters principally concerned with such business? What is the Government's policy? Do they favour British exporters increasing export activity to Nigeria, or do they advise them to cut back in the present financial circumstances?

Mr. Fletcher

We are aware of the difficulties faced by British exporters, but they must be considered in relation to the situation in Nigeria. The Nigerian authorities are seeking debt relief for arrears of short-term credits accumulated in the past two years totalling about US$6 billion. ECGD-insured arrears are estimated at about US$1 billion. We must take that into account as well as the refinancing negotiations that are taking place before we can say anything more specific to British exporters.

Mr. Skinner

Does the Minister recall that I have been in touch with his and other Departments over a considerable period about the state of the contract for W. H. Davis and Sons at Langwith junction in my constituency? Is he aware that the compay cannot get its money out of Nigeria and that scores of workers have been laid off due to that contract not being honoured? Does he agree that not only are the Government wrecking thousands of small businesses in this country, but that the ECGD insurance which they set up cannot do the job abroad when companies are in difficulties?

Mr. Fletcher

The ECGD insurance does the job in specific cases. I do not believe that the hon. Gentleman's complaint is justified.

Mr. Patrick Thompson

Is my hon. Friend aware that in trying to help exporters in my constituency I find that they are at a disadvantage because European competitors can obtain medium-term finance whereas the ECGD is unable, or unwilling, to help?

Mr. Fletcher

I cannot agree with my hon. Friend. We are as competitive as our main European rivals in providing this kind of finance.