§ Mr. SummersonTo ask the Secretary of State for Trade and Industry if he will make a statement on the proposed privatisation of the short-term business of the Export Credits Guarantee Department currently operated by the Insurance Services Group.
§ Mr. LilleyPreparatory work for the privatisation has been taking place for some time. Parliament has been informed of progress as the sale of this business is subject to the completion of the passage of the Export and Investment Guarantees Bill through both Houses of Parliament.
An invitation to tender was issued in early March and I have now completed a thorough review of the responses. I have paid particular attention to the bidders' commitment to, and understanding of, the business, the financial robustness of the proposals, the future business plans and the likely acceptability of the bidder to customers and to staff, as well as to price. In the light of 21W this review, I have selected NCM as the preferred purchaser of the business. This selection is, of course, subject to contract and there will now be a period of detailed negotiations between the Government and the company.
I am confident that the proposed transfer of the business to the private sector will provide United Kingdom exporters with access to a more comprehensive and efficient service than will be possible from within a public sector environment. The Government will continue to provide support for the business through the proposed reinsurance arrangements with the new company, including the "national interest facility" which will continue, subject to satisfactory financial performance, for as long as the Government consider it essential to meet the reasonable needs of exporters.