ECGD (Hansard, 1 December 1999)

§ Mr. Jack
To ask the Secretary of State for Trade and Industry what financial support has been provided for the ECGD in each of the last five years from public funds. [100513]
218W

§ Mr. Caborn
ECGD receives funds from three votes—administration, public expenditure and trading. The actual outturn as reported in the appropriation accounts for the last five years is outlined in the table.

£000

Year Administration Vote Public Expenditure Vote Trading Vote Total

1994–95 28,002 (25,080) (17,295) (14,373)

1995–96 24,582 15,789 (264,105) (223,734)

1996–97 22,824 17,771 (122,197) (81,602)

1997–98 22,627 40,077 (53,152) 9,552

1998–99 22,885 ¹318,959 (110,135) 231,709

¹ The increase in the Public Expenditure Vote in 1998–99 is in respect of a loan from Treasury to enable the refinancing of outstanding export finance which will bring future financial benefits to the Exchequer.

Notes:
1. Figures in brackets indicate a net contribution to the exchequer
2. Figures for 1998–99 have been certified by the NAO but not laid before Parliament

§ Mr. Jack
To ask the Secretary of State for Trade and Industry what role the ECGD plays in the securing of(a) military aircraft export orders and (b) overseas sales of commercial aircraft. [100512]

§ Mr. Caborn
ECGD's guarantees to exporters and banks help UK exporters to secure contracts including in the aerospace field.

§ Mr. Jack
To ask the Secretary of State for Trade and Industry if he will list those categories of commercial transactions which do not qualify for ECGD support. [100516]

§ Mr. Caborn
ECGD provides guarantees for finance products of two years or more. These finance products are applicable to exports of a capital or semi-capital nature plus related services. ECGD does not normally provide support for exports that only justify less than two year credit terms.
ECGD also provides insurance-based products:

1. to exporters who have cash or near cash contracts of a capital or project nature plus related services;

2. as the provider of reinsurance to the commercial insurance market when required; and

3. through its Overseas Investment Insurance scheme.

§ Mr. Jack
To ask the Secretary of State for Trade and Industry which OECD countries have export insurance schemes providing the same categories of cover as are presently available via the ECGD. [100507]

§ Mr. Caborn
The majority of OECD countries have export credit insurance schemes which are broadly similar to that provided by the ECGD, although not all have privatised their short-term credit insurance operations. In respect of medium and long-term business (involving credit terms of two years or more) there is a common system to classify the sovereign and country credit risk of buyer/borrower countries under an agreement concluded through the OECD—the Arrangement on Guidelines for Officially Supported Export Credits.

£000
Year	Administration Vote	Public Expenditure Vote	Trading Vote	Total
1994–95	28,002	(25,080)	(17,295)	(14,373)
1995–96	24,582	15,789	(264,105)	(223,734)
1996–97	22,824	17,771	(122,197)	(81,602)
1997–98	22,627	40,077	(53,152)	9,552
1998–99	22,885	¹318,959	(110,135)	231,709
¹ The increase in the Public Expenditure Vote in 1998–99 is in respect of a loan from Treasury to enable the refinancing of outstanding export finance which will bring future financial benefits to the Exchequer.