§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what the Export Credits Guarantee Department's administration costs were in each of the last five financial years(a) in total and (b) broken down into (i) staff costs, (ii) accommodation costs, (iii) consultancy costs and (iv) IT costs. [186840]
§ Mr. Mike O'BrienThe following table lists ECGD's administration costs by year for the last five financial years.
1015W
£000 Breakdown of administration costs Administration costs
Staff costs Accommodation costs (rent)
Consultancy costs
IT costs Others 1999–2000 23,218 13,548 1,506 515 3,516 4,133 2000–01 27,746 14,136 3,152 758 4,377 5,323 2001–02 29,371 15,523 3,262 628 5,403 4,555 2002–03 26,546 14,022 3,373 1,031 4,388 3,732 2003–04 30,226 14,806 3,645 833 5,676 5,266
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what savings in administration costs the Export Credits Guarantee Department is required to achieve#in 2005–06; and what the projected savings in such costs for the next five financial years are. [186841]
§ Mr. Mike O'BrienDTI is to invest £10 million into ECGD over the two years from April 2005 to improve ECGD's efficiency and effectiveness (I refer you to the Secretary of State for Trade and Industry's announcement about the future of ECGD on 1 July 2004,Official Report, column 22WS). The intention is that the cost savings achieved by ECGD during this period will be sufficient to ensure that the premium reduction of up to £5 million per annum can be sustained after April 2007.
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry whether it is her practice to offer Export Credits Guarantee Department cover in Government to Government defence export and sales agreements; and what the total amount of cover outstanding on such agreements is. [186848]
§ Mr. Mike O'BrienUK companies are eligible for support from ECGD under Government to Government contractual arrangements which could result in the UK company incurring a loss as a consequence of the overseas' Government's failure to pay.
The total amount of cover outstanding in respect of Government to Government contracts underwritten after 1991 currently stand at around £1,060 million.
§ Mr. Simon ThomasTo ask the Secretary of State for Trade and Industry to what extent a capitalised trading fund will give the Export Credits Guarantee Department autonomy from HM Treasury and her Department. [187094]
§ Mr. Mike O'Brien#As a Trading Fund, ECGD will have greater operational freedom to manage its financial affairs.
HM Treasury's future role will be more focused on strategic oversight, while the Shareholder Executive within the DTI will offer Ministers advice on aspects of the Department's corporate governance, financial targets and performance as a Trading Fund.
§ Mr. Simon ThomasTo ask the Secretary of State for Trade and Industry under what terms the £10 million investment in the Export Credits Guarantee Department from her Department's shareholder executive can be spent; and if she will make a statement. [187095]
§ Mr. Mike O'BrienThe £10 million to be invested by the DTI over two years from April 2005 will be spent to improve the operational efficiency and effectiveness of ECGD. The intention is that the cost savings achieved1016W will be used to ensure that the premium reduction of up to £5 million per annum (as detailed in the Secretary of State for Trade and Industry's Trading Fund announcement of 1 July 2004, Official Report, column 22WS) can be sustained after April 2007.
ECGD's new Chief Executive is currently preparing a detailed plan for these cost reductions.
§ Mr. Simon ThomasTo ask the Secretary of State for Trade and Industry if she will estimate what the average reduction in the Export Credits Guarantee Department premium rates will be in(a) 2005–06 and (b) the subsequent five financial years; and if she will make a statement. [187098]
§ Mr. Mike O'BrienAs my right hon. Friend, the Secretary of State for Trade and Industry announced on 1 July,Official Report, column 22WS, ECGD will seek to reduce its premium rates to customers by up to £5 million per annum from April 2005. This is around 6 per cent. of its current premium income.
§ Mr. Simon ThomasTo ask the Secretary of State for Trade and Industry what the terms of reference of the Export Credits Guarantee Department business plan are. [187099]
§ Mr. Mike O'BrienMy right hon. Friend the Secretary of State for Trade and Industry's announcement of 1 July 2004,Official Report, column 22WS, is the basis of the terms of ref#rence for ECGD's business plan. The plan will explain how ECGD will meet the key aims and objectives for the ECGD Trading Fund set out in that statement.