§ Mr. Adleyasked the Secretary of State for Trade and Industry what is the maximum credit period offered on export sales of capital equipment from France, Germany, Japan, the United States of America, the Union of Soviet Socialist Republics, and the United Kingdom, respectively, from information available from international sources.
§ Mr. NobleInternational comparisons of credit terms are not very meaningful since they vary with the size and nature of contracts and with the market concerned. Maximum credit terms supported by official credit insurance organisations and notified to the Berne Union over the last two years are as follows: United Kingdom, Germany and U.S.A.—15 years; Japan—12½ years; and France—12 years. No figures are available for the U.S.S.R.
§ Mr. Adleyasked the Secretary of State for Trade and Industry (1) if he is satisfied that Great Britain's export potential 135W is not being eroded by other countries infringing their international obligations concerning export credit terms; and if he will make a statement;
(2) what is the maximum credit period which British aircraft manufacturers are able to offer to their overseas customers; and if he is satisfied that these terms do not put United Kingdom manufacturers at a competitive disadvantage.
§ Mr. NobleThe length of credit depends upon the type of aircraft concerned but does not normally exceed 10 years from delivery. The terms are the subject of an informal agreement between the major aircraft exporting countries. I am satisfied that United Kingdom manufacturers are at no disadvantage in this respect, and I am not aware of any serious infringements of these agreements which have affected United Kingdom exports.
§ Mr. Adleyasked the Secretary of State for Trade and Industry if he will give a direction to the British Export Board to match credit terms, both in period and interest rates, being offered by any other countries with which United Kingdom manufacturers are in competition.
§ Mr. NobleThe length of export credit terms is primarily a matter for the parties to the contract, but where E.C.G.D. give guarantees it will normally support terms which match those offered with official support by competitors in other countries. As regards interest rates, I would refer my hon. Friend to my statement this afternoon. Exceptionally, E.C.G.D. has powers to match an unduly low rate of interest resulting from the mixing of aid and credit.
§ Mr. Adleyasked the Secretary of State for Trade and Industry if he will set up a working party specifically to study the credit terms available to exporters of capital equipment from countries with which British manufacturers of capital goods have to compete.
§ Mr. NobleNo; a great deal of information is already available. Moreover, the British Overseas Trade Board Task Force will be studying the assistance afforded to exporters in competitor countries and therefore will be able to draw attention to any ways in which136W export credit facilities offered elsewhere may place British exporters at a serious disadvantage.