asked the Secretary of State for Industry whether the proposal to continue cost escalation insurance, as announced by the Chancellor of the Exchequer on 15th December 1976, applies to the shipbuilding scheme.

The announcement by my right hon. Friend relates solely to the cost escalation scheme operated by the Export Credits Guarantee Department for exporters of major capital goods and projects. We have, however, decided that the scheme of cost escalation insurance on sales by United Kingdom shipbuilders to both the home and export market, which is operated by my Department, should be continued.