§ Mr. Mullin
To ask the Chancellor of the Duchy of Lancaster, pursuant to his answer of 3 May to the hon. Member for Sunderland, South, what procedures constitute the full standard investigations carried out into the credit worthiness of companies by the Export Credits Guarantee Department; and what collateral was provided by VR Shipping on its ferry contract.
§ Mr. Kenneth Clarke
The investigation by the ECGD into the creditworthiness of VR Shipping comprised the obtaining and analysis of information on the company's financial background and current standing. Collateral was provided by a mortgage on each ship and the provision of third party guarantees.