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House of Lords Official Report Vol. 711 Monday No. 85 8 June 2009 PARLIAMENTARY DEBATES (HANSARD) HOUSE OF LORDS OFFICIAL REPORT ORDER OF BUSINESS Questions Export Credits Guarantee Department Civil Service: Damian McBride House of Lords: Co-operation with European Parliament Education: Creative Partnerships Bank of England (Amendment) Bill [HL] Order of commitment discharged Marine and Coastal Access Bill [HL] Third Reading Criminal Justice: Sonnex Case Statement Business Rate Supplements Bill Report Grand Committee Healthcare: EUC Report Medicines for Human Use (Miscellaneous Amendments) Regulations 2009 Medicines for Human Use (Prescribing) (Miscellaneous Amendments) Order 2009 National Health Service (Charges) (Amendments Relating to Pandemic Influenza) Regulations 2009 Debated Written Statements Written Answers For column numbers see back page £3·50 Lords wishing to be supplied with these Daily Reports should give notice to this effect to the Printed Paper Office. The bound volumes also will be sent to those Peers who similarly notify their wish to receive them. No proofs of Daily Reports are provided. Corrections for the bound volume which Lords wish to suggest to the report of their speeches should be clearly indicated in a copy of the Daily Report, which, with the column numbers concerned shown on the front cover, should be sent to the Editor of Debates, House of Lords, within 14 days of the date of the Daily Report. This issue of the Official Report is also available on the Internet at www.publications.parliament.uk/pa/ld200809/ldhansrd/index/090608.html PRICES AND SUBSCRIPTION RATES DAILY PARTS Single copies: Commons, £5; Lords £3·50 Annual subscriptions: Commons, £865; Lords £525 WEEKLY HANSARD Single copies: Commons, £12; Lords £6 Annual subscriptions: Commons, £440; Lords £255 Index—Single copies: Commons, £6·80—published every three weeks Annual subscriptions: Commons, £125; Lords, £65. LORDS CUMULATIVE INDEX obtainable on standing order only. Details available on request. BOUND VOLUMES OF DEBATES are issued periodically during the session. Single copies: Commons, £105; Lords, £40. Standing orders will be accepted. THE INDEX to each Bound Volume of House of Commons Debates is published separately at £9·00 and can be supplied to standing order. WEEKLY INFORMATION BULLETIN, compiled by the House of Commons, gives details of past and forthcoming business, the work of Committees and general information on legislation, etc. Single copies: £1·50. Annual subscription: £53·50. All prices are inclusive of postage. © Parliamentary Copyright House of Lords 2009, this publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ 411 Export Credits Guarantee Department[8 JUNE 2009] Export Credits Guarantee Department 412 remit so that more taxpayer money supports more House of Lords overseas deals such as the recent sale of 72 Eurofighters to Saudi Arabia? Will she undertake to ensure that Monday, 8 June 2009. projects that infringe UK human rights standards and the environment will not be supported? 2.30 pm Prayers—read by the Lord Bishop of Liverpool. Baroness Vadera: My Lords, I am very pleased to confirm that we would not support projects that do not meet environmental standards or are an abuse of Export Credits Guarantee Department human rights. On taxpayer funding, as I said in responding Question to the Question, ECGD has been self-financing over the past 20 years. 2.36 pm Asked By Lord James of Blackheath Lord Eden of Winton: My Lords, is it not the case that the fixed-rate export finance scheme has come to To ask Her Majesty’s Government what current an end and that the new system to take its place was financial exposure is faced by the Export Credits announced and came into existence in December last Guarantee Department (ECGD); and what plans year? If that is the case, how is it that businessmen are they have for the ECGD. not able to get any information or details about the new system? How can they possibly plan ahead unless The Parliamentary Under-Secretary of State, they know what is going on? Department for Business, Innovation and Skills & Cabinet Office (Baroness Vadera): My Lords, as of 31 March, ECGD’s total outstanding loans were £13.3 billion. Baroness Vadera: My Lords, the extension of the ECGD aims to recover any money that it pays in scheme to which the noble Lord refers—FREF—will claims and, over the past 20 years, has been cash-positive be announced in the autumn, but I point out that across its portfolio. As announced by the Secretary of there have been only four loans under the scheme in State in New Industry, New Jobs, we are looking at the last seven years. There is not a huge demand for it. existing and potential support offered by ECGD to There is currently only one serious inquiry and that ensure that the organisation plays a significant role company is well aware of the position. supporting UK exporters through the recovery and beyond. ECGD is currently consulting on a letter of Viscount Montgomery of Alamein: My Lords, when credit guarantee scheme and will launch a consultation I was involved in promoting British projects overseas on a credit insurance scheme for exporters by 19 June. many years ago, especially in Latin America, we were always overtrumped and beaten to the punch by Coface Lord James of Blackheath: My Lords, I thank the and Hermes. Does the Minister have a view on whether Minister for that response. However, will she please that situation has improved? comment on the announcement in the Pre-Budget Report 2008 that a £1 billion allocation specifically to Baroness Vadera: My Lords, we provide a level of support small business finance would be channelled support to British exporters that, as a percentage of through the ECGD, and the later report in this April’s our exports, is equivalent to that provided by Germany Budget that consultations on the subject would start and the United States, but not to the level given by soon? Given the sheer importance of this £1 billion to certain countries such as Canada. Following the small business finance, how has it taken eight months privatisation of the short-term business in 1991, we before even consultations can begin? Can she also have had a lower volume of business than certain please assure the House that there is absolutely no other countries. However, I will not apologise for the assumption that the £1 billion is any form of rescue or more rigorous risk analysis, relative to some other lending-ratio adjustment for the ECGD itself? countries, and the environmental and human rights concerns that are taken account of by ECGD. Baroness Vadera: My Lords, I am very happy to clarify that the £1 billion was then converted into £10 billion and was launched in January as the working Lord Roberts of Conwy: My Lords, will the noble capital scheme, which is now current; £5 billion of that Baroness explain how the banks got the money that is for trade credit insurance, which is now current and she referred to? Was it for their own activities or the being implemented, and £1 billion is set against the activities of their clients? lending agreements signed by RBS and the Lloyds group, which are also current. So that scheme is being Baroness Vadera: My Lords, the working capital launched. As part of that, in anticipation of potential scheme assigned a guarantee with Lloyds and RBS, market failure, there is a consultation on letters of under which they are required to sign a lending agreement credit. whereby they are required to lend to UK companies. We have a specific, legally binding agreement—one of Lord Razzall: My Lords, does the noble Baroness the first of its kind in the world—which we monitor agree that the environmental groups are extremely on a monthly basis to ensure that the capital that is concerned by proposals possibly to expand the ECGD’s released goes to UK industry. 413 Export Credits Guarantee Department[LORDS] Civil Service: Damian McBride 414 Lord Tomlinson: My Lords, can my noble friend the then Chancellor, now the Prime Minister, decided assist me? She referred to the £1 billion that became to make Mr McBride a special adviser beyond the veto £10 billion in the new schemes. Is that part of the of Sir Gus O’Donnell. Is that report true or untrue? £10 billion package that the Government announced to deal with our economic crisis and which Her Majesty’s Lord Davies of Oldham: My Lords, Damian McBride Loyal Opposition opposed? was appointed as a special adviser in 2005 following a distinguished and important role in the Treasury. As Baroness Vadera: My Lords, it is a little unclear the noble Lord will appreciate, he held a very high and sometimes what Her Majesty’s Opposition do or do significant position in the Treasury. He was appointed not support. I find it difficult to follow, because they as a special adviser under the terms of such an appear not to have many detailed policies that we appointment. The press reports to which the noble can discuss. Lord referred have to be taken on the basis of one’s judgment of the paper concerned. Lord Brooke of Sutton Mandeville: My Lords, given the Minister’s first Answer to my noble friend and the Lord Foulkes of Cumnock: My Lords, will my noble answer that she has just given, does she appreciate the friend join me in congratulating the noble Lord, Lord irony that, after 12 years of the Treasury working very Lamont, on his courage in raising this issue, which hard to conceal bad news, it has developed the habit of must bring back some painful memories of when he concealing good news as well? was forced to offer his resignation to John Major because of the collapse of the ERM after being advised Baroness Vadera: My Lords, I am delighted that by someone—his special adviser, a Mr David Cameron? noble Lords have the good news now.
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