HC Deb 27 November 1991 vol 199 cc895-6
2. Mr. Andrew F. Bennett

To ask the Secretary of State for Trade and Industry if he will make a statement about export credit guarantees to eastern Europe and the USSR.

The Minister for Trade (Mr. Tim Sainsbury)

Export Credits Guarantee Department short-term export credit cover is available, subject to certain conditions, for the USSR and all the countries in eastern Europe. The availability of medium-term cover varies from country to country.

Mr. Bennett

The Minister will be aware of Oldham Batteries in my constituency, which has an excellent reputation for making mining batteries. He will also be aware that the British market for such products is steadily declining and there is considerable scope for the company to sell batteries to eastern Europe and the Soviet Union. Is he aware that that firm and many other people feel that the Governments of other countries in Europe give more assistance to manufacturers to sell to eastern Europe and the Soviet Union than do the British Government? Will the Minister give an assurance that the jobs of my constituents will be helped by the Government's provision of credit?

Mr. Sainsbury

The Export Credits Guarantee Department has assisted an enormous volume of exports and will continue to do so. I am sure that the factory in the hon. Gentleman's constituency would like to be paid for its exports. Perhaps the hon. Gentleman is aware that the economy of the Soviet Union is in a confused state and that some of the other countries have heavy debt burdens. Those matters will have to be taken into account when we consider whether to allow credit for exports to those countries.

Mr. Knapman

After the long bout of socialism there is bound to be economic instability in Russia and perhaps the way forward would be for those who do not trust the rouble to use barter deals. Will my hon. Friend pay particular attention to the application of a company in my constituency which requires a small amount of insurance cover that could lead to tens of millions of pounds' worth of business?

Mr. Sainsbury

My hon. Friend takes a close interest in the prosperity of companies in his constituency and has written to me about that case. I am happy to say that my officials will be meeting representatives from the company tomorrow to see what ECGD can do to help in the present confused economic position in the Soviet Union.

Ms. Quin

Will the Minister confirm that we have stopped medium-term cover for the Soviet Union longer than any other OECD country? Does the Department of Trade and Industry accept that, while there may be no short-term commercial interest in giving export credit cover, there is a case for doing so in the national and long-term commercial interest? Such a case should be made out. What is the Treasury's attitude to providing cover? Is it simply intent on killing off ECGD altogether?

Mr. Sainsbury

All the major export credit agencies are reviewing cover for the Soviet Union.

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