§ Mr. Pawseyasked the Secretary of State for Trade and Industry whether a decision has been taken on the future of the comprehensive bankers' guarantee scheme operated by the Export Credits Guarantee Department.
§ Mr. ChannonThis scheme has been under review because demand for it has been falling and it has been losing money. I have decided, after consultation with existing users and the banks, that the scheme should be phased out over a period of two years. It is no longer fulfilling its original purpose and the banks and other financial institutions are well able to provide alternative forms of short term export trade finance to viable companies. The Export Credits Guarantee Department will be advising all current users of the detailed arrangements.