Further written evidence from the British
Exporters Association
1. BExA is grateful for the invitation to
submit further evidence to the BIS Select Committee following
publication of the Trade White Paper.
2. BExA welcomes the Trade White Paper,
the co-ordinated approach for support for trade, and the new facilities
from BIS and ECGD to finance and protect exports, including bond
issue support. We see these new facilities as good stepping stones
in the encouragement of exports.
3. BExA would like ECGD to discuss with
exporters and their representative bodies the design, implementation
and distribution of the new facilities to ensure they have a good
take-up, are workable, and that commercial finance can be provided
on the back of them. BExA has instigated a working party with
ECGD to discuss structures and wordings
4. The Trade White Paper addresses key export
concerns, and we are pleased that a new Cabinet sub-Committee
under the Minister for Trade & Investment has been established
to ensure implementation of the White Paper's recommendations.
5. There is one bond issue support matter
that has not been addressed.
The ECGD bond support facility will be for export
only. UK infrastructure projects also regularly require suppliers
to provide on-demand bonds guaranteeing performance and this is
particularly prevalent in publicly-sponsored transportation projects.
Either the requirement from public and governmental bodies for
high levels of bonding in such projects should be scaled back,
or a domestic bond support facility should be provided to enable
domestic UK suppliers to compete for UK contracts on
a level playing field with continental suppliers that have government
support for their bond issuance.
4th March 2011
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