§ Mr. Bendallasked the Secretary of State for Trade and Industry if, in view of the current level of inflation, the powers under which the Export Credits Guarantee Department operates the cost escalation scheme are to be renewed.
§ Mr. ChannonAs a result of the Government's continued success in bringing inflation under control, very few applications have been made to ECGD for cost escalation cover in recent years. I appreciate that this scheme has in the past provided industry with considerable and valuable assistance in securing a number of major export contracts but I believe that it is no longer necessary in the current economic climate. I do not, therefore, intend to seek a further extension of the powers, and no further applications for this form of cover will be accepted. ECGD's existing commitments under cost escalation agreements already issued will, of course, remain unaffected.