§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what rules are applied by the ECGD to the offer of export credit support where the British contribution to an export is less than 100 per cent.; what thresholds are required of British content where British content is less than 100 per cent.; whether those thresholds vary for different products and projects; who monitors the share of United Kingdom content; and what measures are used. [58107]
§ Ms Hewitt[holding answer 21 May 2002]: ECGD's main purpose is to facilitate the export of UK goods and services but few contracts involve 100 per cent. British content. ECGD determines the appropriate level of support for contracts of mixed national content on a case-by-case basis so it is difficult to generalise.
The factors to be taken into account include the precise breakdown of sourcing, and whether reinsurance arrangements or reciprocal agreements exist with other agencies. ECGD will stipulate the precise amount of foreign content to be supported for a particular transaction in its guarantee documentation. Compliance may be monitored by the bank financing the transaction or by ECGD's own auditors.
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what her policy is towards export credit and the apportionment of liabilities, projects and equipment produced on a multi-national basis and which other European Union export credit agencies are involved. [57518]
§ Ms Hewitt[holding answer 21 May 2002]: ECGD considers each case on its merits in order to determine the level of support that is appropriate.
ECGD and other European Union export credit agencies can collaborate to support multi-national transactions in a number of ways. Increasingly, use is made of re-insurance between the agencies which often allows a single export credit guarantee or insurance policy to be issued for such a transaction by one agency acting as lead insurer. Liability is then borne by each of the other export credit agencies according to its re-insured share of the transaction.
401WSometimes each agency provides support for its own national content (possibly together with some non-national content) through the issues of separate guarantees or insurance.
European Union export credit agencies may also provide support for both their own national and each others national content under reciprocal arrangements.
Combinations of the above methods are also possible.