§ Mr. Matthew TaylorTo ask the Secretary of State for Trade and Industry what estimate he has made of the savings from the recently announced changes to the export credits guarantee scheme in the(a) current and (b) next four financial years. [105839]
§ Mr. Caborn[holding answer 18 January 2000]: ECGD's new Fixed Rate Export Finance (FREF) scheme, which became effective on 1 December, is designed to achieve an improved balance between the interests of the UK exporter and the taxpayer. Financial outturn under the scheme will depend on a number of factors, including the future mix and level of business, which is uncertain. But if the recent business mix is maintained over the coming period, taxpayer savings of around £1 million per annum should accrue for every £1 billion of new loan outstanding supported under the scheme.