§ Mr. Ridsdaleasked the Secretary of State for Trade whether he will lower the minimum level at which Export Credits Guarantee Department facilities become available for buyer credit guarantees for capital good contracts.
§ Mr. MeacherThe minimum access figure for buyer credit facilities was increased from £¼ million to £1 million in February this year. There has been very little demand for this facility for contracts below £1 million. The facility is intended for major capital contracts and is relatively expensive to operate. ECGD's bank guarantee scheme is available to support the provision of export finance for contracts below £ 1 million and is generally preferred for these contracts. In view of this there does not appear to be a case for reducing the minimum level of access to the buyer credit facility.
§ Mr. Ridsdaleasked the Secretary of State for Trade whether he will lower the level of contracts at which the Export Credits Guarantee Department is prepared to provide cover against United Kingdom cost increases in capital goods contracts, which have a manufacture period of at least two years.
§ Mr. MeacherThe future of the cost escalation scheme for exports is currently under review, in view of the expiry of the existing powers next March. I hope to make a statement of our intentions soon. Proposals for widening the scope of the scheme must, of course, be considered in the light of the substantially reduced rate of inflation since the scheme was introduced and the continuing international criticisms of cost escalation schemes generally.