asked the Chancellor of the Exchequer if he is aware of delays in settling claims under the export rebate scheme; what are the reasons for these delays; and what action he is taking to remedy them.

This scheme has in general worked very well but there have been delays, and I am sorry they have happened. They have been caused by misunderstandings by claimants, inadequate evidence of entitlement to payment, and staff shortages in the Customs Department. The difficulties are being progressively reduced.