§ Mr. Skeetasked the Secretary of State for Trade what measure of assistance is envisaged by the market entry guarantee scheme; and whether it is intended to extend the scheme to benefit large United Kingdom petrochemical companies operating abroad.
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§ Mr. Meacher:The market entry guarantee scheme is designed particularly to help smaller and medium sized firms in manufacturing industry to deal with the financial risk and problems associated with a venture to develop a new export market. In approved cases the scheme will contribute 50 per cent. of the eligible overhead costs of the market venture up to a maximum contribution of £100,000. The minimum contribution is £20,000. In return for this contribution, a levy on sales receipts is made; this is intended to recover the contributions with a commercial rate of return on the scheme's investment. If, by the end of the agreed venture period, sales have not materialised as expected, then no further levy payments are required and the firm and the scheme will share the loss. For this guarantee the firm pays the scheme an annual premium.
The scheme, which is being operated by the British Overseas Trade Board on a two-year experimental basis, is, however, open to any firm irrespective of its size exporting a tangible product manufactured in the United Kingdom. Assistance under the scheme would therefore be available to large United Kingdom petrochemical companies so long as the proposed venture was capable of satisfying the scheme's guidelines.
I am sending the hon. Member a leaflet which fully describes the scheme, and placing copies in the Library for the information of hon. Members.