The role of the Export Guarantees
Advisory Council
77. The Export Guarantees Advisory Council was established
under Section 13 of the Export and Investment Guarantees Act 1991
(which provides the legal base for the ECGD's operations) to
give advice to the Secretary of State, at his/her request, in
respect of any matter relating to the exercise of his/her functions
under the Act. It appears from EGAC minutes that, while the Council
was alerted to the objections raised by industry and kept informed
of progress with negotiations, it was not consulted about the
consistency of the changes negotiated by industry with the Department's
Business Principles.
78. It was clear from the minutes of EGAC's November
meeting that some EGAC members were unhappy that they had not
been involved in a review of the industry-inspired changes:
"6.2.2 It was questioned whether the Council
had been able effectively to provide advice before the changes
were introduced. Although the Council had provided advice on
anti-corruption procedures to Ministers in January, specific advice
had not been officially sought since discussions had commenced
on the changes requested by customers. The Council had nevertheless
been regularly updated at meetings. But it was agreed that there
might have been a benefit for ECGD if the Council had been able
properly to review the changes.
6.2.3 Council members felt that they had been
unable to properly engage on this issue, whereas the role and
benefit of EGAC was to give timely advice in such circumstances.
This should be considered going forward, and the Council hoped
that their view would be sought on any changes in policy."[83]
79. The Minister acknowledged that there would be
opportunity for lessons to be learned from the ECGD's handling
of this issue,[84] and
that :
"If there are opportunities in the future
for the Export Guarantees Advisory Council to play a fuller role
then the minutes will be reflected in our thinking"[85]
80. We
welcome ECGD's acknowledgement that the introduction of new procedures
could have been handled better. In the light of this experience,
we would expect the Export Guarantees Advisory Council to be consulted
on any proposal to amend ECGD's procedures and that ECGD would
seek its advice on the need for consultation with customers and
other interested parties.
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