§ Mr. Wickendenasked the Secretary of State for Trade whether the power, due to expire in March 1982, under which the Export Credits Guarantee Department operates the cost escalation scheme, is to be renewed.
§ Mr. BiffenI intend to recommend to the House an extension to 26 March 1983 of this power, which is granted under section 5 of the Export Guarantees and Overseas Investment Act 1978. The necessary draft order will be laid before the House in due course.
I have also decided to raise the minimum United Kingdom contract value which qualifies for access to the scheme, in view of the changes in real money values since its introduction in 1975. The £2 million minimum contract value will be raised to £5 million and, where the contract involves the supply of a number of individual units of equipment, the minimum qualifying value per unit will be raised from £500,000 to £1 million. These revised minimum values will apply to new applications for cover received by ECGD as from today.