HC Deb 02 June 1960 vol 624 cc146-7W
13. Mr. P. Williams

asked the Chancellor of the Exchequer whether he is aware that certain foreign Governments are providing credit guarantees up to a limit of seven years, which is a considerable advantage to their shipyards, and that British shipyards are thereby suffering loss; and what action he proposes to take on this matter.

Mr. Barber

My right hon. Friend is aware that certain foreign Governments have on occasion provided export credit guarantees for ships for more than five years post delivery and this has no doubt affected the competitive position of British shipbuilders. This is, however, only one aspect of the wider problem of competition in credit terms for large capital goods which the Government are watching closely. Our policy is to try to secure the general agreement of other exporting countries to the observance of agreed limitations on the length of credit to be covered by Government guarantees.

Mr. J. Howard

asked the Chancellor of the Exchequer whether, in view of the fact that some foreign exporters of capital goods, including foreign shipbuilders, are giving their overseas customers credit going beyond five years after delivery, he will take action to ensure that United Kingdom exporters are free to offer similar terms.

Mr. Barber

Her Majesty's Government place no Exchange Control restrictions on banks or other credit institutions in the United Kingdom which are prepared to finance exports of capital goods on terms longer than five years from delivery.