§ Baroness Noakesasked Her Majesty's Government:
Further to the Written Statement by the Lord Sainsbury of Turville on 1 July (WS 17–20) in relation to the Export Credits Guarantee Department, what form the financial objectives for the realisations account of the proposed trading fund will take. [HL3770]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)The objective of the realisation account will be to maximise the asset value of the account, consistent with the Government's strategy on international debt. The details of this area to be worked out during the pilot trading fund.
§ Baroness Noakesasked Her Majesty's Government:
Further to the Written Statement by the Lord Sainsbury of Turville on 1 July (WS 17–20) in relation to the Export Credits Guarantee Department, in what sense the target rate of return for the new business account will be "affordable". [HL3771]
§ Lord Sainsbury of TurvilleThe intention is that the new business account should be able to remunerate its capital from current income without the need for an across-the-board increase in premium rates, thereby maintaining the current "risk reward" balance of government export credit support—that is, the remuneration rate should be affordable from current income, hence the affordable rate.