§ 2.47 p.m.
Lord Bruce of DoningtonMy 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 what consultations have taken place with export houses since their published decision to phase out the ECGD's comprehensive bankers' guarantee scheme, and with what result.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)My Lords, before the Government's decision was announced, consultation took place with all users of the ECGD scheme referred to, including export houses, and the views then expressed were taken into account. No further consultations with export houses have taken place since the decision was announced.
Lord Bruce of DoningtonMy Lords, can the noble Lord inform the House on what consultations took place between his department and the noble Lord, Lord Young of Graffham, before the phasing out of this particular part of the ECGD's scheme was announced? Is he aware that the withdrawal of this scheme will have a particular impact on small and medium sized businesses, and in particular on their cash flow? Will he say whether satisfactory agreements have been arrived at with the export houses and the banks in order to ensure that satisfactory facilities will be given, particularly to small and medium sized exporting firms, so that their progress may continue?
§ Lord Lucas of ChilworthMy Lords, the fact of the matter is that a reducing number of exporters have taken advantage of the scheme. In 1981, for example, 1,770 were using the facilities. The current figure is down to 725. In addition, the service is losing money. As a result of the consultations which took place earlier this year we were satisfied that there was an availability of finance through the normal banking channels to satisfy the needs of small and other exporters.
Lord Bruce of DoningtonMy Lords, is the noble Lord aware that one of the reasons why the number of 492 firms using these facilities has declined is that the policies of the Government have decimated the numbers that are able to participate in these particular schemes? Will he give an undertaking that before proceeding further consultations will take place with his noble friend Lord Young of Graffham with a view to ensuring, even at this late stage, that the facilities are restored?
§ Lord Lucas of ChilworthMy Lords, the policies of Her Majesty's Government have improved our exporting performance quite considerably over a number of years. Secondly, I can give the noble Lord opposite the assurance that any matters concerning industry, and particularly exporting, are discussed with all relevant Ministers.
§ Lord DiamondMy Lords, is the noble Lord satisfied that the best way of dealing with a loss being made by a service is to cancel the service completely—especially when it is obviously still of considerable use to some exporters?
§ Lord Lucas of ChilworthMy Lords, my honourable friend the Minister of Trade and Industry announced on 24th October this year the finishing of this particular facility concerning the ECGD; but it will not finish completely for two years, so enabling exporters to make alternative arrangements, which, as I have already said, the banking channels are ready and able to deal with.