HL Deb 08 February 1989 vol 503 cc1555-6

3 p.m.

Lord Rodney asked Her Majesty's Government:

Whether they will review the practice whereby companies participating in joint venture schemes at exhibitions are often required by the Department of Trade and Industry to make payment in full for stands up to 20 months in advance.

Lord Young of Graffham

My Lords, I quite understand and have sympathy with the concern that has prompted this Question. The problem of exceptionally long lead times concerns only a small minority of joint ventures at overseas trade fairs supported by my department. Nevertheless, I have decided that for the future companies wishing to take part in joint ventures affected in this way will be required to pay only 50 per cent. of their participation fees in advance unless a larger sum is required to meet their share of any immediate payments in connection with the event.

Lord Rodney

My Lords, I wish to thank my noble friend the Minister very much for that constructive reply. Can I press him a little further? In some cases the British Overseas Trade Board does not have to pay the 50 per cent. with the booking of the stand. Will the Minister go further and say that whatever the BOTB has to pay to the exhibition organisers, those conditions will be passed on to the exhibitors?

Lord Young of Graffham

My Lords, I fear that I cannot help my noble friend. Unfortunately—not unfortunately, it is a fact—my department or the BOTB takes on the full liability when asking for payments. What we are now doing is merely asking those companies who are coming into the scheme to pay one half of their future contribution. That probably represents anything between one-fifth and one-third of the full cost. The liability remains with my department and I think that this is a considerable advance. I hope that on reflection the noble Lord will agree.

Lord Ironside

My Lords, will my noble friend confirm that this very welcome concession will apply to those taking part in AIDEX '89 which is the first international defence exhibition in Australia at the end of November? The cut-off date is 19th May this year. It may well be that certain people have already applied and paid their money.

Lord Young of Graffham

My Lords, I cannot pretend that I have all the information about all the fairs and promotions we support. I shall certainly look into that and write to my noble friend.