§ Mr. Michael Lathamasked the Secretary of State for Trade to what factors he attributes the decline from £190.8 million to £147.3 million in the total business insured by ECGD under its constructional 468W work policies in 1975–76 compared with 1974–75 and the commensurate decline in premium income from £2.103 million to £1.015 million, in view of the growing interest in construction exports in that period.
§ Mr. MeacherConstructional works projects are normally large and irregular in occurrence. Comparisons of cover given for single years are not, therefore, very significant. I am not aware of any special factors affecting the 1975–76 figures. It would be wrong to conclude that the trend is declining; figures for 1976–77 are likely to show a substantial increase.
§ Mr. Michael Lathamasked the Secretary of State for Trade whether he will give specific examples of the action taken by diplomatic posts in (a) Bahrain, (b) Iran, (c) Iraq, (d) Jordan, (e) Kuwait, (f) Lebanon, (g) Qatar, (h) Saudi Arabia, (i) Syria, (j) Egypt, (k) Dubai and (l) Abu Dhabi to meet the recommendations of Paragraphs 2, 3 and 4 of his departmental, Circular OTM 11/76 entitled "Market Intelligence Opportunities for United Kingdom Construction Firms" since the issue of that circular on 30th October 1976; and what monitoring procedures he has established to ensure those recommendations are carried out and prospective exporters advised accordingly.
§ Mr. MeacherSince the OTM 11/76 the posts concerned have maintained a good flow of information, particularly market pointers and specific export opportunities. These are circulated immediately to prospective exporters through the computerised Export Intelligence Service. I will write to the hon. Member informing him of action taken by the specific posts he mentions. But in general I am satisfied that the posts are doing everything they can to implement the requirements of the circular, but if there are ways in which the construction industry consider that the information provided can be further improved, I shall be glad to consider them.
§ Mr. Michael Lathamasked the Secretary of State for Trade why, pursuant to the Under-Secretary's reply to the hon. Member for Melton on 3rd February, he does not collect detailed information 469W about United Kingdom construction exports to Middle Eastern countries; and wheher he will take steps to improve his statistical services in that regard, in view of the importance of that market.
§ Mr. MeacherInformation on a country basis about payments from overseas to contractors in the United Kingdom and to the various professional services engaged in overseas construction work is not collected because this would substantially increase the form-filling burden on the companies and individuals concerned.
Information about work done by contractors in the Middle East was published in Trade and Industry of 15th October 1976 on page 164. More detailed figures for some countries are available from the Department of the Environment.
The overseas trade statistics classify exports of goods by commodity and not by industry of end use. As many materials used in the construction industry have alternative uses, it is impossible to compile accurate figures considering the many headings involved. Some figures on exports of plant equipment could be produced but the cost of the preparation of this information would exceed normal limits and the results would also be imprecise because of the problem, as with materials, of idenification.
§ Mr. Michael Lathamasked the Secretary of State for Trade what specific arrangements are made by the Overseas Project Group of the British Overseas Trade Board for advising Ministers on the selection of firms or groups of firms to pursue particular construction projects overseas; by what actual methods they seek the agreement of the construction industry to a suitable British team; and whether he will list by name the selections which have been made under these arrangements since December 1975.
§ Mr. MeacherIn the great majority of cases in which the Overseas Projects Group gives assistance a suitable British team is formed on the initiative of the firms themselves. If the group is required itself to assist with the formation of a suitable team it consults the relevant representative organisations in the construction industry. If this procedure did not succeed the group would seek advice from the Construction Exports Advisory470W Board. To date, it has not been necessary to consult the board. The composition of teams for particular projects overseas is a matter of commercial confidence.
§ Mr. Michael Lathamasked the Secretary of State for Trade why, pursuant to the Under-Secretary of State's replies to the hon. Member for Melton on 5th July 1976 and 3rd February 1977, he initially gave erroneous figures of £44.989 million, £55£997 million, £4.913 million and £18.732 million for the years 1971–72 to 1974–75 inclusive in respect of ECGD insurance for constructional work, when the correct figures were £63.8 million, £17.9 million, £35.4 million, £190.8 million and £0.466 million, £0.276 million, £0.606 million and £0.715 million were given in respect of ECGD premium insurance in the same period when the correct figures were £0.378 million, £0.521 million, £0.557 million and £2.103 million respectively; why it took him six months to discover these errors and then only revealed them when the hon. Member asked a further Question; and what steps he is taking to prevent a repetition of such an incident.
§ Mr. MeacherThe answer on 5th July 1976 gave correct figures for the value of work done under constructional works contracts then covered by ECGD. This appeared to be what the hon. Member was asking. The Question on 3rd February 1977, however, suggested that the hon. Member was interested in the new business covered by ECGD under its constructional works policies during certain years. In an endeavour to be as helpful as possible, my answer, therefore, gave these figures for the years mentioned in both Questions.