HC Deb 29 July 1975 vol 896 cc483-4W
Mr. Gould

asked the Secretary of State for Trade what possibility is offered by the Export Credits Guarantee Department to British exporters, and contractors for work from foreign customers, of protecting themselves against inflationary increases in labour costs.

Mr. Deakins

The ECGD can often extend its normal credit insurance support for exports to include reasonable contingency sums payable under a contract where the cost of carrying it out may increase. In addition, a temporary scheme of cost escalation cover was recently introduced to provide partial protection for contractors and exporters of major capital goods against abnormal increases in labour and other United Kingdom costs to the extent that these cannot be recovered from their overseas buyers. My right hon. Friend gave the House details of this scheme, including the criteria for access, on 20th February. The ECGD's power to make the relevant payments is contained in the Export Guarantees Amendment Act.