HC Deb 21 November 1984 vol 68 cc284-5
6. Mr. Fallon

asked the Secretary of State for Trade and Industry if he is now in a position to announce the Government's conclusions on the report of the Matthews committee on the future of the Export Credits Guarantee Department.

Mr. Channon

Sir Peter Matthews and his colleagues produced an excellent report, for which the Government were grateful. I fully share the committee's view that changes are needed to make ECGD more businesslike and commercial, but I have desired that such changes do not require the Department to be turned into a public corporation, as the committee recommends.

I have therefore put in hand a further quick review to investigate the scope for change within the present departmental framework to give effect to the Matthews committee's underlying objectives. The terms of reference for the review have been placed in the Library.

I have also asked ECGD to discuss with the private sector the scope for increasing private sector involvement in support of United Kingdom exports, without detriment to ECGD's own risk portfolio.

My right hon. Friend the Chancellor of the Exchequer has also asked the Treasury and the Bank of England to examine with other interested parties the idea of a private sector export bank.

Mr. Fallon

Can my right hon. Friend assure me that those changes will make ECGD staff and management more businesslike? When does he expect the review to be completed? Who will undertake that review?

Mr. Channon

The intention is to make the staff and management more businesslike. The review team will consist of management consultants from Coopers and Lybrand, together with representatives from the Treasury, the Manpower and Personnel Office and the ECGD. I hope that it will be a quick review. I think it will take about four months to complete.

Mr. Wilson

I very much welcome the latter part of the Minister's answer. Will the right hon. Gentleman take on board the fact that United Kingdom exports have increased by only about 4 per cent. during the past five years? That is a disgracefully low figure compared with the increase in other European countries. Will the right hon. Gentleman ask for a renewed thrust by the Government to help small exporters to go abroad and sell their wares, thus creating employment?

Mr. Channon

I am strongly in favour of encouraging small exporters to get into the market for the first time. I take note of what the hon. Gentleman said, although I am not sure that I accept his figure. I believe that our export performance is reasonably satisfactory.

Mr. Wilson

No.

Mr. Channon

I believe that it is. I shall do everything that I can to encourage people along the lines that the hon. Gentleman has in mind.

Mr. Dorrell

In considering the future of the ECGD and other public support to British exporters, will my right hon. Friend take special care to ensure that the support we give to our exporters is not only as good as the support available in competitor countries but, where possible, better?

Mr. Channon

I entirely agree with my hon. Friend. From discussions that I have had with British exporters, I have formed the strong impression that, compared with the other credit agencies, they feel that the ECGD and the British Overseas Trade Board give a good service to British exporters.

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