§ Mr. Skeetasked the Secretary of State for Trade which EEC countries enable exporters to insure against inflation; and if he will give an indication of the schemes adopted.
§ Mr. DeakinsThe French and Italian Governments at present operate some arrangements in respect of increases in the manufacturing costs of export contracts for capital goods. The Italian scheme is newer and somewhat more restrictive than the French scheme. In return for a fee, the Governments concerned refund the cost of increases in the prices of labour and materials should these rise beyond a stipulated threshold. The first part of cost increases is met by the exporters. The French Government's arrangements are not available for exports to other EEC member States, but it is not yet clear whether the Italian arrangements will be similarly limited.
§ Mr. Skeetasked the Secretary of State for Trade if he will enable the Export Credits Guarantee Department to insure British exporters against changes in exchange rates and depreciation in money values due to inflation.
§ Mr. DeakinsWhere exporters do not invoice in sterling, general protection against exchange fluctuations is already available through the London Foreign Exchange Market. Since ECGD facilities provide access to finance, this already helps exporters to avoid many of the problems and costs involved in waiting for credit payments to be made.