§ Mr. Arnold Shawasked the Secretary of State for the Environment if he has received from the Construction Exports Advisory Board a report of its activities to date; and if he will make a statement.
§ Mr. FreesonMy right hon. Friend the Secretary of State and my right hon. Friend the Secretary of State for Trade have received from the Chairman of the Construction Exports Advisory Board, Mr. D. G. Scholey, his report of the board's activities to date.
The board has looked at the adequacy of market intelligence made available by Government to the construction industry. The board has brought to the attention of diplomatic posts abroad the need for information about export opportunities to be notified quickly and to be more closely related to the special requirements of construction exporters.
A shortage of facilities for bonding and protection against contingent liabilities is thought to be a major obstacle facing construction exporters.
The board has been associated with certain proposals for expanding these facilities, which have been initiated by the Department of Trade, which is coordinating financial and industry interests in their efforts to achieve solutions to the problems. The board will take a continuing interest in this important subject. My right hon. Friends are studying proposals by the board for changes in present tax laws which might be inhibiting successful construction exporting.
The board has determined the conditions under which it might be required to advise my right hon. Friends on the selection of firms or groups of firms to pursue particular construction projects overseas. It concluded that it should complement the arrangements already operated by the Overseas Project Group of the British Overseas Trade Board and would give advice only when the group, after consultation, had failed to get the agreement of the industry to a suitable British team. The board has so far not been called upon to act in this way.
696WIn connection with its task of harnessing additional resources for construction exports, the board concluded that the spare capacity that now existed in the industry—particularly among the smaller and medium-sized concerns—showed that a need existed for separate focal points for branches of the industry where export problems could be co-ordinated. Following discussions with the board, the Export Group for the Constructional Industries and the British Consultants Bureau are introducing measures to assist in establishing focal points for contractors and sub-contractors and for consultants respectively. The Building Materials Export Group already represents its sector of the construction industry.
The board has reviewed its future activities and my right hon. Friends will be considering them.
The board acknowledges the help that it has received from a great many bodies and individuals, both within the industry and within Government. I welcome the Board's report; it does I believe, highlight the main problems facing construction exporters and proposes measures that go at least some way towards providing solutions to them. The board's continuing studies will identify further measures to assist the already growing efforts of our construction exporters.