HL Deb 25 November 1952 vol 179 cc515-7

2.37 p.m.

LORD BARNBY

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government what is the total of outstanding insurances written by the Export Credits Guarantee Department against exports to Brazil; against what proportion have claims been made; and at what monthly rate are such liabilities, when due, being repaid.]

THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT SWINTON)

My Lords, the present total estimated commitments of the Export Credits Guarantee Department in respect of exports to Brazil amount to about £32 million. Claims received represent about 20 per cent. of the total, and payment is now being made at the rate of about £2 million per month.

LORD BARNBY

My Lords, in view of the commitments which the noble Viscount has just stated, and the rate of payment of the claims which he has mentioned, would he consider it worth while attempting to obtain information as to the amount of merchandise—that is, merchandise similar to that on which the insurances were previously written, before the Exports Credits Guarantee Department ceased writing them—held up in the United Kingdom? Then, when possessed of that information, would he consider recommending consideration of some scheme whereby advances against that merchandise in warehouses—such as warehouse receipts—could be made? Such action would tend to unfreeze a considerable amount of merchandise which is now held up, which is delaying the putting of more into the pipeline and so tending to have an adverse impact on unemployment.

VISCOUNT SWINTON

My Lords, the Department concerned are, I know, always considering the difficult problem of this Brazilian indebtedness. What I suggest to my noble friend, if he will agree, is this. I will draw to the attention of the Secretary for Overseas Trade, who is responsible for the Export Credits Guarantee Department, the suggestion which the noble Lord has made; and if he would be good enough to put to the Secretary for Overseas Trade exactly what is in his mind, then I am sure the Minister concerned would be delighted to discuss it with him.

LORD LUCAS OF CHILWORTH

My Lords, can the noble Viscount tell the House whether the Export Credits Guarantee Department are still underwriting the Brazilian business? And, if so, has the premium been very much adversely affected by the conduct indicated by the noble Lord who asked the Question?

VISCOUNT SWINTON

My Lords, I rather think that for the moment they have ceased to underwrite these risks, but I am not absolutely certain about this. I cannot answer the other point, because it is not my Department—I am not even co-ordinating. If the noble Lord will put down a Question on the Paper, I will see that he has a full reply.

LORD STRABOLGI

My Lords, surely the whole idea of the Export Credits Guarantee Department is to underwrite risks. That is what the Department was formed for.

VISCOUNT SWINTON

Yes, but it was not formed necessarily to underwrite very foolish risks, otherwise it might lose a great deal of money and might not be able to underwrite risks which are worth underwriting. That is a principle which I have applied in other forms of insurance, and I hope that the Government will always have some regard to it in underwriting other risks.