Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment he made of the ability of the Government of Qatar to obtain alternative funding for the import of (a) Typhoon and Hawk aircraft and (b) associated goods and services before providing UK Export Finance support.
Answered by Graham Stuart
UK Export Finance’s (UKEF) mission is to ensure no viable UK export fails for lack of finance or insurance from the private sector, while operating at no net cost to the taxpayer.
It is normal for buyers to look to pay for very large capital expenditures over time in order to spread their costs over a manageable period. UKEF’s support was critical to ensuring the success of the Typhoon contract with the Government of Qatar.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what human rights assessment the Government carried out in advance of its decision to provide the Government of Qatar with £4.5 billion of financing support for the export of Typhoon and Hawk aircraft and associated goods and services.
Answered by Graham Stuart
The UK operates one of the most thorough and robust export control systems in the world. The UK Government will not grant export licences where to do so would be inconsistent with the Consolidated EU and National Arms Exports Licensing Criteria, which include an assessment of human rights and fundamental freedoms in the country of final destination.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to the letter sent to him on 20 June 2018 from Louis Taylor, the Chief Executive of UK Export Finance, what assessment he has made of the (a) level, (b) time horizon and (c) political nature of the risks involved in that transaction.
Answered by Graham Stuart
For UK Export Finance (UKEF) to provide financing support for the export of Typhoon and Hawk aircraft and associated goods and services to the Government of Qatar, the Department assessed the impact that the relative quantum of the transaction (around £4.5 billion concentrated in a single market) would have against UKEF’s portfolio and the transaction’s risk horizon of 12.5 years. The Department considered UKEF’s support to be in the national interest in deepening the UK and Qatar’s defence and security relationship. Additionally, the Secretary of State considered the industrial and economic benefits to the UK of the contract, for which UKEF’s support was critical to ensuring its success.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to the letter of 20 June 2018 from the Chief Executive of UK Export Finance, what the size, time horizon and political nature are of the risks involved in the provision of financing to support the Government of Qatar in the export of Typhoon aircraft and associated equipment and services.
Answered by Graham Stuart
For UK Export Finance (UKEF) to provide financing support for the export of Typhoon and Hawk aircraft and associated goods and services to the Government of Qatar, the Department assessed the impact that the relative quantum of the transaction (around £4.5 billion concentrated in a single market) would have against UKEF’s portfolio and the transaction’s risk horizon of 12.5 years. The Department considered UKEF’s support to be in the national interest in deepening the UK and Qatar’s defence and security relationship. Additionally, the Secretary of State considered the industrial and economic benefits to the UK of the contract, for which UKEF’s support was critical to ensuring its success.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, whether UK Export Finance support for the export of Typhoon and Hawk aircraft to the Government of Qatar will support British small businesses; and whether support through the Direct Lending Facility set aside for SMEs has been used in that transaction.
Answered by Graham Stuart
UK Export Finance’s (UKEF) support for the export of Typhoon and Hawk aircraft to Qatar supports BAES which has a supply chain of 9,000 companies, including small businesses. As the Direct Lending Facility is used to finance the purchase of capital goods and/or services, it is typically used by larger businesses and can also benefit the smaller businesses in their supply chains. UKEF has remaining capacity under its Direct Lending Facility. UKEF looks to where it is needed most and where it can have the greatest beneficial impact for UK exporters and their customers.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what the eligibility criteria are for access to UK Export Finance's Direct Lending Facility.
Answered by Graham Stuart
UK Export Finance’s (UKEF) Direct Lending Facility is open to any exporter carrying on business in the UK who can satisfy UKEF that a single bank with a dedicated trade finance function cannot provide export finance for the transaction, or will only provide finance at an interest rate that would jeopardise the prospects of winning the export contract. This product can be particularly valuable in supporting small deals, and those in less developed markets, where bank capacity is typically more limited.
UKEF publishes information about its Direct Lending Facility, including eligibility criteria, on its website.
https://www.gov.uk/guidance/direct-lending-scheme (see ‘Main Features Document’).
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to his letter of 15 September 2018 to the Chair of the International Trade Committee, what risk assessment the Government carried out on the UK Export Finance support for the export of Typhoon and Hawk aircraft and associated goods and services to the Government of Qatar; and if he will publish that risk assessment.
Answered by Graham Stuart
UK Export Finance (UKEF) has carried out due diligence and robust risk assessment on this transaction, concluding that the overall risk in relation to the transaction was low. This risk assessment is commercially sensitive.
The basis of UKEF’s normal underwriting criteria is a framework agreed with HM Treasury that allows UKEF to provide support where it is needed for UK exporters while managing potential risks to the Exchequer arising from both individual transactions and across its portfolio. Due to the quantum of support (particularly to a single obligor), the long risk horizon and the nature of the transaction, its financing did not fit within UKEF’s normal underwriting criteria. In these circumstances, Ministers can instruct UKEF to support transactions which are judged to be in the national interest.
The UK and Qatar share a close defence and security relationship. The defence contracts with the Government of Qatar were announced alongside a package of training and co-operation between the British and Qatari Air Forces. Both BAES and MBDA UK are significant employers in the UK and this contract will support BAES, its nearly 35,000 employees and the 9,000 companies in its supply chain, many of whom are in highly skilled design and manufacturing roles.
The breakdown of the £4.5bn in financing support to the Government of Qatar is: £3.5bn in loan guarantees and an offer of £1bn in direct loans. In addition to the £4.5bn referred to by the Secretary of State for International Trade in his letter of 15 September to the Chair of the International Trade Committee, UKEF has provided further support for the contract in the form of export insurance bringing the total value to around £5bn in support.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, with reference to his letter of 15 September 2018 to the Chair of the International Trade Committee, for what reason the support offered to the Government of Qatar for the export of Typhoon and Hawk aircraft and associated goods and services falls outside of UK Export Finance's normal underwriting criteria.
Answered by Graham Stuart
UK Export Finance (UKEF) has carried out due diligence and robust risk assessment on this transaction, concluding that the overall risk in relation to the transaction was low. This risk assessment is commercially sensitive.
The basis of UKEF’s normal underwriting criteria is a framework agreed with HM Treasury that allows UKEF to provide support where it is needed for UK exporters while managing potential risks to the Exchequer arising from both individual transactions and across its portfolio. Due to the quantum of support (particularly to a single obligor), the long risk horizon and the nature of the transaction, its financing did not fit within UKEF’s normal underwriting criteria. In these circumstances, Ministers can instruct UKEF to support transactions which are judged to be in the national interest.
The UK and Qatar share a close defence and security relationship. The defence contracts with the Government of Qatar were announced alongside a package of training and co-operation between the British and Qatari Air Forces. Both BAES and MBDA UK are significant employers in the UK and this contract will support BAES, its nearly 35,000 employees and the 9,000 companies in its supply chain, many of whom are in highly skilled design and manufacturing roles.
The breakdown of the £4.5bn in financing support to the Government of Qatar is: £3.5bn in loan guarantees and an offer of £1bn in direct loans. In addition to the £4.5bn referred to by the Secretary of State for International Trade in his letter of 15 September to the Chair of the International Trade Committee, UKEF has provided further support for the contract in the form of export insurance bringing the total value to around £5bn in support.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what assessment his Department has made of the (a) industrial, (b) economic and (c) foreign policy benefits that will be provided by the contracts for the export of Typhoon and Hawk aircraft and associated goods and services to the Government of Qatar.
Answered by Graham Stuart
UK Export Finance (UKEF) has carried out due diligence and robust risk assessment on this transaction, concluding that the overall risk in relation to the transaction was low. This risk assessment is commercially sensitive.
The basis of UKEF’s normal underwriting criteria is a framework agreed with HM Treasury that allows UKEF to provide support where it is needed for UK exporters while managing potential risks to the Exchequer arising from both individual transactions and across its portfolio. Due to the quantum of support (particularly to a single obligor), the long risk horizon and the nature of the transaction, its financing did not fit within UKEF’s normal underwriting criteria. In these circumstances, Ministers can instruct UKEF to support transactions which are judged to be in the national interest.
The UK and Qatar share a close defence and security relationship. The defence contracts with the Government of Qatar were announced alongside a package of training and co-operation between the British and Qatari Air Forces. Both BAES and MBDA UK are significant employers in the UK and this contract will support BAES, its nearly 35,000 employees and the 9,000 companies in its supply chain, many of whom are in highly skilled design and manufacturing roles.
The breakdown of the £4.5bn in financing support to the Government of Qatar is: £3.5bn in loan guarantees and an offer of £1bn in direct loans. In addition to the £4.5bn referred to by the Secretary of State for International Trade in his letter of 15 September to the Chair of the International Trade Committee, UKEF has provided further support for the contract in the form of export insurance bringing the total value to around £5bn in support.
Asked by: Barry Gardiner (Labour - Brent West)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what the breakdown of the £4.5 billion in financing support for the export of Typhoon and Hawk aircraft to the Government of Qatar is.
Answered by Graham Stuart
UK Export Finance (UKEF) has carried out due diligence and robust risk assessment on this transaction, concluding that the overall risk in relation to the transaction was low. This risk assessment is commercially sensitive.
The basis of UKEF’s normal underwriting criteria is a framework agreed with HM Treasury that allows UKEF to provide support where it is needed for UK exporters while managing potential risks to the Exchequer arising from both individual transactions and across its portfolio. Due to the quantum of support (particularly to a single obligor), the long risk horizon and the nature of the transaction, its financing did not fit within UKEF’s normal underwriting criteria. In these circumstances, Ministers can instruct UKEF to support transactions which are judged to be in the national interest.
The UK and Qatar share a close defence and security relationship. The defence contracts with the Government of Qatar were announced alongside a package of training and co-operation between the British and Qatari Air Forces. Both BAES and MBDA UK are significant employers in the UK and this contract will support BAES, its nearly 35,000 employees and the 9,000 companies in its supply chain, many of whom are in highly skilled design and manufacturing roles.
The breakdown of the £4.5bn in financing support to the Government of Qatar is: £3.5bn in loan guarantees and an offer of £1bn in direct loans. In addition to the £4.5bn referred to by the Secretary of State for International Trade in his letter of 15 September to the Chair of the International Trade Committee, UKEF has provided further support for the contract in the form of export insurance bringing the total value to around £5bn in support.