§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report (a) the numbers employed in the 725 companies currently using the Export Credits Guarantee Department's comprehensive bank guarantee schemes and (b) percentages of business activity involved in exports of their companies.
§ Mr. ChannonThis information is not readily available.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if the recent review of the Export Credits Guarantee Department's comprehensive external trade review will take into account both the financial outcome of the facility in the Export Credits Guarantee Department's terms and the wider economic impact of the facility for United Kingdom exporters.
§ Mr. ChannonReviews of this facility take into account its impact on United Kingdom trade generally and the views of current users of these guarantees on all aspects.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish an estimate of the impact of phasing out the Export Credits Guarantee Department's comprehensive bank guarantees on small exporters; and if he will make a statement.
§ Mr. ChannonThe impact of phasing out these guarantees will be small. Banks and other financial 187W institutions are able to provide finance for exports by viable companies without a guarantee direct from ECGD. The two-year period for phasing out the guarantees will allow ample time for exporters to transfer to alternative arrangements.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report the amount paid out by the Export Credits Guarantee Department to private sector brokers in 1984–85; and if he will provide an estimate of their effectiveness.
§ Mr. ChannonThe amounts paid by the Export Credits Guarantee Department to private sector brokers in 1984–85 totalled £2,486,000. It is up to individual ECGD policyholders whether to appoint a broker. It is not possible to quantify exactly the financial benefit to ECGD from the activities of brokers but I am satisfied that brokers play a useful role in selling and servicing ECGD cover and in relieving the Department of certain administrative functions. To be eligible for commissions, brokers have to conform to standards of conduct and competence laid down in an agreement between ECGD and the United Kingdom Credit Insurance Brokers' Committee.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will make a statement about the future of the Export Credits Guarantee Department's comprehensive external trade guarantee; and if United Kingdom merchants and others can be assured of its continued availability.
§ Mr. ChannonThe outturn of this guarantee facility has been under review periodically since changes were made to it in 1981 in an endeavour to reduce the high level of losses it was sustaining. I cannot anticipate the outcome of the review of the facility's outturn in 1985–86.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report the total value of export finance advanced to United Kingdom exporters via the Export Credits Guarantee Department's comprehensive basic guarantee schemes over the last five financial years.
§ Mr. ChannonFinance for exports insured under ECGD's comprehensive guarantee schemes is made available by banks against the Department's comprehensive bank guarantees, where the exporter requests such an ancillary guarantee. The amounts of finance advanced and remaining outstanding under these arrangements at the end of the last four financial years totalled: 1981–82—£551 million; 1982–83—£327 million; 1983–84—£301 million; 1984–85—£184 million. Further amounts would have been advanced by the banks early in each year and repaid within that same year. The amounts for earlier years are not available.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report the total cumulative losses under the Export Credits Guarantee Department's comprehensive basic guarantee schemes; and if he will list under each facility the percentage of total claims payments for that facility attributable to the 10 biggest loss-making individual guarantees.
§ Mr. ChannonI shall reply to the hon. Member as soon as possible.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report the 188W losses incurred by the Export Credits Guarantee Department in 1984–85, showing the amount and percentage due to political causes and the administration costs of the Export Credits Guarantee Department in the same year.
§ Mr. ChannonThe total amount of claims paid by the Export Credits Guarantee Department in the financial year 1984–85 was £834.9 million, of which £683.5 million (82 per cent.) resulted from political causes of loss, mainly delays in the transfer of currency. The administration costs of the Department in the same year were £33.9 million.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report the number of jobs lost as a result of the implementation of the recent review of management and organisation of the Export Credits Guarantee Department; and if he will estimate the resulting financial savings.
§ Mr. ChannonNo jobs have been lost to date as a result of the implementation of this review's recommendations, which is continuing.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will make an estimate of the impact of the Export Credits Guarantee Department's comprehensive bank guarantees on total export orders and on employment arising from those orders.
§ Mr. ChannonFollowing a review of these guarantees, which included views solicited from those exporters making use of them currently, I reached the conclusion that phasing them out over a two-year period would have no significant effect on exports or employment levels in exporting companies. Alternative sources of finance are available.
§ Dr. McDonaldasked the Secretary of State for Trade and Industry if he will publish in the Official Report a list of the future alternative sources of comparably priced export finance available for small companies.
§ Mr. ChannonA wide range of alternative sources of export finance is available from banks and other financial institutions, many of which publicise their facilities widely. The cost of such facilities is a matter between the provider and the user in each case.