§ Mr. Chris MullinTo ask the Chancellor of the Duchy of Lancaster, on how many arms contracts losses have been incurred under the export credits guarantee scheme for each year since 1979; and what has been the total involved for each year.
§ Mr. Alan Clark[holding answer 13 April 1989]: Separate figures are only available for arms business underwritten on ECGD's section 2 (national interest) account. On this basis, total figures for premium, claims and recoveries are as follows:
95W
Financial Year Premium £000s Percent age of Total Premium received by ECGD Claims £000's Percent age of Total Claims paid by ECGD Recoveries £000's 1979–80 13,192 8.7 26,162 9.9 4,011 1980–81 6,357 4.2 31,684 10.9 3,847 1981–82 9,238 3.9 7,471 2.5 10,701 1982–83 12,196 3.5 5,183 0.9 4,012 1983–84 17,465 10.7 18,502 2.7 5,747 1984–85 10,754 6.7 10,445 1.2 924
Financial Year Premium £000's Percentage of Total Premium received by ECGD Claims £000's Percent age of Total Claims paid by ECGD Recoveries £000's 1985–86 22,375 13.1 8,212 1.1 447 1986–87 20,667 13.0 29,909 3.8 594 1987–88 15,013 10.7 46,000 4.7 154 The figures relate to cash flows in the relevant financial year. Claims figures should not be equated with losses; in particular, substantial recoveries can be expected from the proceeds of on-going rescheduling agreements. The figures indicate that ECGD's general experience on this arms business has been better than on other trade sectors.