§ Mr. Skeetasked the Secretary of State for Trade whether Her Majesty's Government intend to continue the cost escalation scheme for the benefit of manufacturing industry in general and the process plant manufacturers in particular; and whether the Government are prepared to place the scheme on a three-year basis comparable to programmes on the Continent.
§ Mr. TebbitAs the Minister for Trade informed my hon. Friend the Member for Edinburgh, South (Mr. Ancram) in his reply of 1 February, it is the Government's intention to recommend to the House an extension for 12 months of the powers granted under section 5 of the Export Guarantees and Overseas Investment Act 1978 to enable the scheme's operation for a further year. Under the terms of the Act this is the maximum period for which these powers may be extended at a time. The terms of the scheme are to be amended to increase the premium payable for the cover it provides.