Arms Trade: Qatar

Department for International Trade written question – answered on 29th October 2018.

Alert me about debates like this

Photo of Barry Gardiner Barry Gardiner Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Secretary of State 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.

Photo of Barry Gardiner Barry Gardiner Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Secretary of State 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.

Photo of Barry Gardiner Barry Gardiner Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Secretary of State 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.

Photo of Barry Gardiner Barry Gardiner Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Secretary of State 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.

Photo of Graham Stuart Graham Stuart Assistant Whip, Parliamentary Under-Secretary (Department for International Trade)

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.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.