Exports (Hansard, 15 March 1989)

§ 6. Mr. Cran
To ask the Chancellor of the Duchy of Lancaster what is the estimated volume of United Kingdom exports facilitated by the activities of the Export Credits Guarantee Department over the past five years.

§ Mr. Forth
In the five years to 31 March 1988—the latest date for which figures are available—the total volume of United Kingdom exports for which guarantees have been issued by ECGD was £78.25 billion.

§ Mr. Cran
I am sure that my hon. Friend would agree that the ECGD has been outstandingly successful in facilitating exports from the United Kingdom. Incidentally, it is worth noting that the ECGD has traded—if that is the right word—successfully for 60 out of its 69 years. Does my hon. Friend agree that, as with all institutions that have been affected by Third world and other debt problems, there is at least a case for looking at the ECGD's balance sheet to distinguish those debts that can be recovered from those that patently can not?

§ Mr. Forth
I welcome very much what my hon. Friend says about the ECGD's invaluable contribution to the trading performance of this country. We are very confident that, in spite of some very difficult trading circumstances recently, it will continue to provide an excellent service to exporters. However, it has to be examined, and we are currently looking at its flow and at the way in which it operates to ensure that it will continue to provide the best possible service against the most secure financial background.

§ Mr. Cousins
Can the Minister give the House an assurance that the present arrangements for the Export Credits Guarantee Department will survive the introduction of the single market in 1992, and that there will not be a reduction in the scale of its activities or, alternatively, entirely new arrangements opening it up to other Common Market countries?

§ Mr. Forth
The hon. Gentleman makes an important point. We all recognise that the current role of the ECGD will have to be looked at, both by Her Majesty's Government and by the Commission of the European Community, in the light of developments up to and beyond 1992. This is being done. One cannot prejudge the outcome, but it is fair to say that we expect to see the ECGD's role in this country continuing to be fully comparable with that of its opposite numbers in other countries of the Community, and its role vis-a-vis countries outside the Community, if anything, being strengthened.