Vol. 415 No. 7
9 Mr. Callely asked the Minister for Industry and Commerce if he will outline the effect, if any, the Single European Market will have on the provision of export credit schemes; if there will be an EC Directive in this area; whether our present export credit insurance and credit finance schemes operate on a similar basis to those operating in other EC countries; and if he will make a statement on the matter.
While the full effects of the Single Market on export credit schemes in the EC remain to be determined, it is likely that it will lead to greater involvement of the private sector in the provision of export credit insurance and finance and, correspondingly, a diminution in the roles traditionally played by the State supported export credit agencies. It should also lead to enhanced co-operation between member states with a view to eliminating distortions to trade arising from the different levels and forms of Government support for export credit operations within the EC.
Already, adjustments to national export credit schemes are currently taking place in or are under consideration by many EC member states in the run up to the Single Market. In our own case the Government last year decided to restructure Irish schemes with a view to reducing State support and encouraging greater private sector involvement in export credit. Since late last year the State no longer provides insurance cover for short term commercial credit risks on the basis that private insurers — including the Insurance Corporation of Ireland which up to the end of last year operated the export credit schemes as agent of the Minister for Industry and Commerce — will now provide such cover to exporters. On the other hand, the State continues to provide exporters with cover for political risks and risks connected with medium term projects. These developments are broadly in line with advanced thinking in some other EC countries, such as, for example, the UK, where the recent part-privatisation of ECGD is a case in point.
