HC Deb 21 November 1974 vol 881 cc524-5W
Mr. John Garrett

asked the Secretary of State for Trade what is the outcome of the review of the fixed rate export scheme; and if he will make a statement.

Mr. Shore

I am glad to say that the review is now complete. The clearing banks have agreed to accept certain modifications to the scheme which will restrict their rate of return under it. The revised arrangements will come into effect forthwith. Finance under the scheme will continue to be made available by the banks at interest rates fixed by the Government in the light of the rates available from our major overseas competitors. Provision will be made in the Winter Supplementaries for payment of a contingent liability to the banks which, as the Third Report of the PAC indicated, has arisen because of a gap in the Export Credits Guarantee Department's powers. I shall be introducing legislation at an early date during this Session to empower ECGD to meet any liabilities to the banks which arise under the revised arrangements.