§ Lord Harmar-Nichollsasked Her Majesty's Government:
When they will announce the plans for the proposed privatisation of the short-term business of ECGD, currently operated by the Insurance Services Group.
§ The Lord Advocate (Lord Fraser of Carmyllie)Preparatory 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 the Secretary of State for Trade and Industry has now completed a thorough review of the responses. He has 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 this review, he has 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.
The Secretary of State is confident that the proposed transfer of the business to the private sector will provide UK 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.