HC Deb 15 January 1986 vol 89 cc1060-1
4. Mr. Robert Atkins

asked the Secretary of State for Trade and Industry if he is satisfied with the financial and other support given to exporters by his Department.

The Minister for Trade (Mr. Paul Channon)

I am confident that support given to exporters by my Department is effective, but I am, of course, always looking for ways to improve it.

Mr. Atkins

Is my right hon. Friend aware that many of us are extremely grateful to him for his work concerning exports? However, is he further aware of the criticisms of exporters and companies in various constituencies about the ECGD? They think of it as an umbrella available when the sun is shining, rather than when the need arises.

Is my right hon. Friend aware that with many countries, such as Thailand and Mauritius a policy of soft loans would be beneficial to exporters in seeking to achieve success in those markets?

Mr. Channon

I am grateful to my hon. Friend for his remarks.

The ECGD has two duties, to provide an efficient support to exports and to break even, and that is difficult in view of the present economic conditions throughout the world.

I shall consider my hon. Friend's point about Thailand and Mauritius. As he knows, I am still doing my best to help him and his constituents with the famous Bangkok bus project.

Mr. Jim Spicer

Will my right hon. Friend take note that in this context the opportunities available to our exporters in Turkey are valuable, and will he pay particular attention to those opportunities?

Mr. Channon

Of course I shall. I take note of my hon. Friend's view about opportunities in Turkey.

Mr. Skinner

Does the Minister recall negotiations with a couple of firms which are trying to sell refuse collection vehicles to Ecuador but which are running into some trouble?—[Laughter.]— I know that this is different from normal practice, but that is what the game is about. Is the Minister aware that his Department has been holding up arranging export credit guarantees which would enable workers to build the refuse collection vehicles in the midlands and north-east Derbyshire? Is he further aware that more than 50 jobs are on the line? Why is the Minister causing all these difficulties by stopping the export credit guarantee arrangement? Will he deal with the matter, because if it is not finalised this week the jobs will go and the balance of payments will be the loser?

Mr. Channon

I shall, of course, look at the matter. Ecuador has been a recipient of the DX facility from the ECGD. I do not know about the specific case that the hon. Gentleman has in mind, but it is likely that it involves a case for which I have just agreed there should be export credits.

Mr. Thurnham

Does my right hon. Friend agree that the purpose of exporting is to make us wealthier, rather than poorer?

Mr. Channon

Yes, Sir.

Mr. Maclennan

Is the Minister prepared to consider whether the financial duties requiring ECGD to break even are too tight and so defeat the purpose of existing exports?

Mr. Channon

I shall certainly look at that, but I should be surprised if any rational man could come to that conclusion. The ECGD's cash flow problems are well known and serious. That is not surprising in a period of great economic difficulties throughout the world.