§ Sir Peter Mills
asked the Minister for Trade whether the powers under which the Export Credit Guarantee Department operates the cost escalation scheme is to be renewed.
§ Mr. Peter Rees
Although the Government's success in reducing inflation should cause demand for cost escalation to fall away to the point where the scheme could be allowed to lapse, I am satisfied that there remains at the moment sufficient demand from those exporters who are tendering for contracts with extremely long manufacturing periods that cost escalation insurance cover should continue to be available. I therefore intend to recommend to the House an extension to 26 March 1984 of the power granted under section 5 of the Export Guarantees and Overseas Investment Act 1978. The necessary draft order will be laid before the House in due course.