§ Mr. Churchillasked the Secretary of State for Trade what is the average cost to the taxpayer of financing goods exported under Export Credits Guarantee Department credit, expressed as a percentage of total production cost.
§ Mr. MeacherThe major part, about 80 per cent., of goods exported under ECGD guarantees is sold on cash or short credit. The financing of these sales involves no cost to the taxpayer. For the rest, which represents less than 10 471W per cent. of total United Kingdom exports, where the sales are financed on extended credit in sterling at the fixed export rates of interest, such finance can be eligible for support under the refinancing scheme. The public expenditure then involved will depend on a range of variables, including the level of the fixed rate applicable to particular contracts; the level of the agreed rate of return to the banks; the size of contract and length of credit and the overall level of finance provided by the banks from their own resources without refinancing loans. The most recent estimates for the refinancing scheme are set out in Table 2.4 (Trade, Industry & Employment) on Pages 32/3 of Cmnd. 6393 "Public Expenditure to 1979–80". Details for 1975–76 are shown in Volume 2: Class IV, Vote 12 of the Appropriation Accounts 1975–76 (pages 69 and 72).