HL Deb 05 June 1985 vol 464 cc741-2

2.43 p.m.

Lord Hatch of Lusby

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

The Question was as follows:

To ask Her Majesty's Government whether they have noted the concern expressed in the fourth report of the Overseas Project Board over Government policy towards it and whether they intend to take any action.

Lord Brabazon of Tara

My Lords, the Government have noted the board's concern. My right honourable friend will be discussing their views with the board's chairman shortly.

Lord Hatch of Lusby

My Lords, I thank the Minister for that Answer. I should like to ask him whether his attention has been drawn to the statement in the board's fourth report, which reads: Recently we have become very concerned at the Government's apparent ambivalence as reflected in delays in handling ATP cases, some curtailment of ECGD's facilities and pressure on ECGD to adopt a more cautious attitude to country risk than that taken by many of the UK's competitors". Has the noble Lord also read in this morning's press a report on the National Economic Development Office's report to the Treasury which supports the view that the Government are apparently unaware of the importance of supporting our manufactured exports trade?

Lord Brabazon of Tara

My Lords, we have noted carefully the report of the Overseas Trade Board; and a most useful report it is. The action that we are proposing to take is by international effort to reduce by multilateral agreement all forms of export subsidies so that British companies can compete on equal terms for project business worldwide. We are determined to maintain and, where possible improve the effectiveness of existing support mechanisms, including the aid and trade provision and the ECGD's fixed rate export finance scheme, by selective financial support on a repayable basis towards the bidding costs of companies pursuing major work overseas.

Lord Hatch of Lusby

My Lords, that really does not answer the question as to what the Government have been doing. Is it not the case that leading industrialists, along with many Members of both Houses of Parliament, have for years been urging the Government to give our exporters at least an equal opportunity with their foreign competitors? Why is it that even now the Government are cutting down the money which they are putting into their own statutory bodies designed to support exports and therefore reducing their opportunities to support our exporters?

Lord Brabazon of Tara

My Lords, there are criticisms. As far as ECGD is concerned, it provides a wide range of facilities for capital goods exporters, but from time to time changes to existing schemes and their terms and conditions will have to be made. The Government accept that changes are needed to make the ECGD more commercially orientated and responsive to industry's needs. It is for this reason that a study is currently in hand to consider how the needs highlighted in the Matthews Report can best be met within the existing institutional structure.