§ Mr. Adam Butlerasked the Secretary of State for Trade and Industry what progress he has made in preparing a scheme to improve the credit terms available for sales of British equipment and services for the development of United Kingdom offshore oil and gas resources.
§ Mr. ChatawayWe recognise that United Kingdom suppliers can be at a disadvantage over credit terms in supplying this important new market. The problem arises because overseas suppliers to the United Kingdom Continental Shelf have access to loan finance at preferential interest rates from their national export credit institutions, but no such assistance is available to United Kingdom firms.
Accordingly my Department is now ready to provide, under Section 8 of the Industry Act, interest relief grants at 3 per cent. per annum on credit obtained to finance contracts for the provision of British goods and services for the construction of fixed offshore installations used in the development of hydrocarbon resources on the United Kingdom Continental Shelf. To qualify, orders for goods and services must have been placed on or after 1st October 1973. These grants will help to create fair competition in this market. Details of the scheme are available in the Vote Office.