§ 92. Mr. Snowasked the Chancellor of the Exchequer whether he is aware that the Bank of England's limit of 120 days for short-term credits, other than those connected with transactions for which Export Credit Guarantee Department cover is available, places United Kingdom exporters in a disadvantageous position by comparison with their continental competitors who are able to take advantage of the more liberal terms granted by continental banks; and if he will give directions to the Bank of England to extend this limit.
§ Mr. ErrollThe Bank of England does not in fact limit short-term credit to 120 days. Banks may themselves establish credits up to 120 days, and the Exchange Control normally allow extensions of credits up to a total of 180 days for consumer goods and 360 days, or even longer, for capital goods.
There is no evidence to suggest that our exporters are at a disadvantage in this respect compared with their continental competitors.