§ 39. Dame Irene Ward
asked the President of the Board of Trade, in view of the continuing deterioration of the export trade, if he will give details of his recently announced new policy regarding export credits.
§ Mr. J. Rodgers
The changes which my right hon. Friend announced on 20th October, were two. In the first place the Government will be prepared to authorise the Export Credits Guarantee Department to insure credit on294W longer terms than the normal 5-year maximum in particular cases where this is necessary to allow a United Kingdom exporter to match terms offered by a foreign competitor with the backing of an export credit guarantee institution or equivalent official support. This facility will be available in a limited number of selected cases.
Secondly, E.C.G.D. will in future be in a position to make available facilities for part-period cover; that is, in the case of certain contracts whose total period extends beyond five years' credit, the Department will be prepared to give cover in respect of the first five years if the exporter is prepared to take the balance beyond that period. This facility will be available rather more freely provided that it is clear that terms longer than five years are being offered by foreign suppliers.
In addition my right hon. Friend announced at the beginning of this month that E.C.G.D. were bringing into operation a new policy for shipbuilders providing for substantially reduced premium rates made possible by linking insurance cover with the security of a ship's mortgage
Documents are being prepared to implement these policies.