Rebalancing the Economy: Trade and Investment
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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