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Export Credits

Volume 236: debated on Monday 10 March 1930

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39.

asked the Secretary to the Overseas Trade Department the number of cases during the 12 months ended to the last convenient date that the Government have been called upon to pay under its guarantee on bills lodged with importers that were given under the exports credit scheme; and can he give the nationality of the defaulters or where they were domiciled?

122 separate claims were paid under the Export Credits Guarantee Scheme during the 12 months ended 28th February. The acceptors of the dishonoured bills in question were domiciled in 41 different countries.

Are the ordinary commercial trade inquiries made before these transactions are completed?

Does any loss fall on the British taxpayer, and, if so, what is the amount?

The final loss falls on the British taxpayer. Last year the amount was about £18,000 to £20,000.

So that it would be true to say the British taxpayer has really guaranteed any loss that may arise from Russian defaults?

If the bill has been guaranteed and the acceptor does not pay the Government make good the loss.

50.

asked the Secretary to the Overseas Trade Department why he anticipates that the cost of implementing guarantees during the coming year under the export credits scheme will rise by 50 per cent.?

The anticipated rise in the cost of implementing guarantees under the Export Credits Guarantee Scheme during the coming financial year is due in part to the expectation of heavier claims owing to the world wide depression of credit conditions, and in part to the expectation of an increasing turnover. In this connection, the hon. and gallant Member will also, no doubt, have observed that the Estimate for Export Credits provides for a 50 per cent increase in premium receipts.

May I take it that that applies to the countries which take out guarantees and that it will presumably be Russia?