§ Mr. Neubertasked the Secretary of State for Trade what representations he has received from civil engineering consultants and construction companies about difficulties in securing adequate bonding facilities for work overseas; and whether he has plans to remedy the problems arising from financial guarantees being linked to speculative tenders rather than secured contracts and to assets rather than trading record.
§ Mr. MeacherThe Export Credits Guarantee Department is in regular contact with both civil engineering consultants and construction companies in connection with the provision of tender and performance bonds for export contracts. In deciding the level of support to be given for tender bonds, due account is taken of a contractor's trading record and of the fact that since only a proportion of his tenders will be successful his total bonding commitment is not restricted solely by reference to his asset base.