HC Deb 29 October 1975 vol 898 cc549-51W
Mr. Viggers

asked the Secretary of State for Trade how many policies have been signed under the Export Credits Guarantee Department's cost escalation insurance scheme; and for what amount.

Mr. Deakins

No guarantees have yet been issued, but the scheme has already assisted in the successful negotiation of £140 million of business and a large volume of potential business is at various stages of negotiation. The large project business which the scheme is designed to cover inevitably takes considerable time to negotiate with overseas buyers.

Mr. Viggers

asked the Secretary of State for Trade what is his latest estimate of the total annual cost of export credit.

Mr. Deakins

The estimated cost to the Government in the financial year 1974–75 of ECGD's export refinancing and interest rate support arrangements is £157 million. This includes the cost of providing refinance loans to the banks at the fixed export rate and of interest rate supplements on the bank's unrefinanced fixed rate export lending. ECGD's credit insurance operations are conducted on a commercial basis and at no net cost to public funds.

Mr. Viggers

asked the Secretary of State for Trade what is the latest estimate of the liability in respect of guarantees given under the Export Guarantees Act 1968.

Mr. Deakins

As at end-September 1975 it is estimated that liabilities under Section 1 guarantees stood at £6,919 million and liabilities under Section 2 guarantees stood at £2,710 million. Thus estimated total liabilities in respect of guarantees given under the 1975 Export Guarantees Act totalled £9,629 million.

Mr. Viggers

asked the Secretary of State for Trade what is the latest estimate of sums paid for securities acquired under Section 3 of the Export Guarantees Act 1968 and for the time being held by the Secretary of State.

Mr. Deakins

£207 million represents sums paid for securities held by the Secretary of State under Section 4(1) of the 1975 Export Guarantees Act. These relate to economic assistance loans given before 1966.

Mr. Viggers

asked the Secretary of State for Trade what is the latest estimate of principal moneys outstanding in respect of loans made under subsection (1) of Section 1 of the Export Guarantees Amendment Act 1975.

Mr. Deakins

At end September 1975 it is estimated that £1,339 million was outstanding in respect of principal moneys under Section 3(1)(a) of the Export Guarantees Act 1975.

Mr. Viggers

asked the Secretary of State for Trade what is the latest estimate of the amount due to the Secretary of State under such arrangements as are mentioned in subsection (5) of Section 1 of the Export Guarantees Amendment Act 1975.

Mr. Deakins

Nil

Mr. Viggers

asked the Secretary of State for Trade what is the latest estimate of the liabilities of the Secretary of State in respect of arrangements made under Section 3 of the Export Guarantees Amendment Act 1975.

Mr. Deakins

Although the cost escalation scheme has already assisted exporters in the successful negotiation of export business, guarantees have not yet been issued and the liabilities involved have not been recorded against the Department's limit on commitments.

Mr. Viggers

asked the Secretary of State for Trade what amount of the propose £1,000 million of export credits to the Union of Soviet Socialist Republics announced by the Prime Minister in February 1975 has so far been taken up.

Mr. Deakins

The total value of contracts so far placed under these arrangements, which in fact total £950 million, is estimated at £30 million. In addition a large number of contracts are currently in negotiation. The total value of these is estimated at £450 million.

Mr. Viggers

asked the Secretary of State for Trade what is the current estimate of the (a) annual and (b) total overall cost of providing £1,000 million of export credits to the Union of Soviet Socialist Republics.

Mr. Deakins

The cost to the Department of fixed-rate export credit depends on a number of variables such as the level of the fixed rate applicable to each contract, the level of the agreed rate of return to the banks, the size of contract and length of credit and when business is placed. It is, therefore, impossible to make a realistic estimate of either the annual or the overall cost.

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