Annex B
CUSTOMER SURVEY & ECA COMPARISONS
CUSTOMER SURVEY
From April to May 2003, ECGD carried out a survey
of its customers to assess the impact of ECGD on jobs, exports
and economic activity in the United Kingdom. This was the first
time that an exercise to gather this information from customers
had been conducted by ECGD and the outcome was published at the
same time as NERA II.
A strong cross-section of ECGD's customers contributed
thorough and frank responses to the comprehensive questionnaire
that ECGD issued. The responses of customers indicated that they
believed ECGD had a positive impact on their output and employment,
and on that of firms within their supply chains. While the survey
was not based on the kind of rigorous economic theory seen in
NERA II, it did provide a snapshot of the perceived value of ECGD
in the eyes of its customers.
ECGD also received a number of letters from
trade associations. The key concern raised by the majority of
these letters was a worry that ECGD needed to remain competitive
with the prices and terms offered by official export credit agencies
(ECAs) in other OECD countries, which may be more heavily subsidised.
ECA COMPARISONS
In February 2003, ECGD published the result
of a survey it conducted comparing its own offering with those
of other ECAs internationally. ECGD's main strength was its high-quality
product range. The results showed, however, that ECGD tended to
have less cover available and tended to be more expensive than
most other ECAs that lack tough financial targets, and hence may
be more heavily subsidised than ECGD. In this context, ECGD is
unlikely to close the gap between its offering on cover and pricing
and that of its international counterparts. Thus the Government
will push for the elimination of export credit subsidies to deliver
a level-playing field for UK exporters.
This survey will be repeated in 2004 and 2005
to see how ECGD is progressing
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