OVERSEAS TRADE (CREDITS AND INSURANCE) AMENDMENT BILL. (Hansard, 14 July 1921)

§ THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT PEEL)
My Lords, your Lordships will remember that last year you passed a measure to enable the Government to finance exports from this country, to countries distressed and disorganised by the war, to the extent of £ 26,000,000. "This Bill contemplates a different method of carrying out these advances. The old method was by direct advances. This Bill proceeds by guaranteeing bills drawn against exports from this country up to 80 per cent. of the face value of the bill. There are two advantages inherent in this method. In the first place, no money will pass except in the case of default, and, in the second place, the transaction of financing will be carried out in the ordinary way by the banks, with whom there will be as little interference as possible. There will, however, be this guarantee by the Government.
1091 One consequential Amendment is necessary, because these bills, when they have run for more than twelve months, will not be discounted by the banks. There is, therefore, a provision for extending the period up to September, 1924. This applies only to the original advances, and the whole matter comes to an end in September, 1925, when it is hoped that trade will have resumed its normal position. The only other change involved is that the British Empire is included, although it is not intended at present to finance transactions with India and the Far East.

§ LORD BUCKMASTER
My Lords, before your Lordships consent to the Second Reading of this Bill, I shall be glad if the noble Viscount can give the House some information as to the extent to which guarantees have already been given under the Act of 1920, and the extent of the existing commitments. I should also like to know if any losses have been incurred under these guarantees up to the present time. The noble Viscount may not be able to give the information.

§ VISCOUNT PEEL
Yes, I can give it. I did not want to trouble the House with figures.

§ LORD BUCKMASTER
I think it is important.

§ VISCOUNT PEEL
The total amount of advances sanctioned is £ 2,612,639 1s. 11d. The actual amount advanced is £ 1,007,363 19s. 10d. The advances repaid up to date amount to £ 30,504 5s. 2d. I understand that no losses have been incurred. The actual sums incurred in guarantees are very small as yet. If I may give a rough figure, they amount, I think, to about £ 6,000.

§ LORD BUCKMASTER
I am very much obliged to the noble. Viscount for that information. It certainly shows that the. national commitments are very serious. The noble Viscount says there have been no losses incurred up to date, which is a very reassuring statement. Have these advances that have been made been in all cases repaid when they were due. or do those advances now outstanding, although it is assumed that there will be no loss upon them, cover advances the time for 1092 the repayment of which has passed by? What debts are now owing?

§ VISCOUNT PEEL
I cannot answer that question with absolute certainty, but I was informed that the payments have been made at the proper dates. Whether there has been any delay in one case, I cannot state absolutely without inquiry, but I think the general position is so far satisfactory that repayments are being made to date.