§ Mr. Chopeasked the Secretary of State for Trade and Industry if he will make a statement on the future of the exchange risk guarantee scheme.
§ Mr. Norman LamontMy hon. Friend the Parliamentary Under-Secretary of State for Industry announced on 3 November 1983 that the exchange risk guarantee scheme was being extended until 31 December 1984.
The scheme provides exchange risk cover for loans advanced by the European Investment Bank and the European Coal and Steel Community, mainly to firms in the assisted areas. The Government have decided to extend this part of the scheme until 31 March 1985 to enable its future to be reviewed in the light of the changes in regional industrial policy that I announced to the House on 28 November.
The scheme also provides exchange risk cover for lending to small firms under the new community 128W instrument. The Government have now concluded that taking account of rising costs and the availability of alternative sources of finance, this cover outside the assisted areas should come to an end on 31 December 1984. Suitable transitional arrangements will be worked out with the new Community instrument's agents.
I shall make a further statement when the Government have completed their review of cover for the lending of the European Investment Bank and European Coal and Steel Community.