HC Deb 01 November 1995 vol 265 cc295-6
11. Mr. Bayley

To ask the President of the Board of Trade what proportion of export credit guarantees last year were used to support the export of military equipment. [38659]

Mr. Oppenheim

Eighteen per cent. of the value of guarantees issued by the Export Credits Guarantee Department in 1994–95 were for contracts for the export of military equipment.

Mr. Bayley

Does the Minister realise that less than 2 per cent. of our total exports are of military equipment but that they receive more than 30 per cent, of all export credit guarantees? How does he justify that? Does he realise that, if United Kingdom manufacturers of civilian equipment received the same Government support as arms manufacturers, we would not have slumped from 13th to 18th position in the world prosperity league, and the York carriage works in my constituency would not have lost vital far east export orders to competitors in Germany and France, and would not, therefore, be closing, with the loss of all 750 jobs?

Mr. Oppenheim

Let me put the hon. Gentleman's mind at rest on one matter. The Labour advertisement which appeared in this morning's press stated that France had overtaken us in the past 15 years. That is wrong. France overtook us when the Labour Government were in office. To fiddle the figures in its advertisement, Labour included Hong Kong and Singapore, which were excluded in the 1960s and 1970s. According to the World Bank, in terms of gross domestic product per head, Hong Kong and Singapore are also ahead of Japan and Germany, so we are in fairly good company.

The hon. Gentleman talked about the Export Credits Guarantee Department. He should be focusing on the percentage of export credits relating to the export of capital goods to non-OECD countries. Given the total figures, ECGD cover is the right proportion when compared with the overall proportion of exports. If the hon. Gentleman is saying that we should reduce ECGD cover for defence exports, he should make that absolutely clear, as such a reduction would have severe job implications for many people represented by Labour Members.

Mr. Nigel Evans

Is my hon. Friend aware that, in my constituency, thousands of people are employed by British Aerospace in the military defence industry? Many small to medium-sized businesses are supplying British Aerospace. It is important that those businesses receive Government support through export credit guarantees, and that the Government support projects—as we have done—such as the Eurofighter 2000, which means that we are able to secure many thousands of jobs and manufacturing skills in the north-west, especially in the smaller industries to which I have referred.

Mr. Oppenheim

My hon. Friend is right. The House should be aware that 400,000 jobs are dependent on the defence industry. Those jobs are concentrated in various constituencies, including those of the hon. Member for Dunfermline, East (Mr. Brown) and the right hon. Member for Derby, South (Mrs. Beckett). If it is now Labour policy to cut back export credit support for defence sales, perhaps the Opposition will let us know. We can then assess the effect on their constituents' jobs.