The paper was requested in July 1999 by the then Minister of Trade, Brian Wilson;

      The EMSG has a unique perspective on this matter because it is composed of individuals with a professional understanding of this topic and an appreciation of the various strains of opinion which exist within the Labour Party on all the relevant issues;

      By the mid 1990’s ECGD had won back a reputation for making a significant contribution to UK companies winning valuable export contracts.  This reputation however suffered badly in the last two years of the 90’s as a result of ECGD coming off cover for many markets and due to overrulings from the Treasury in decisions on individual cases;

      The EMSG considers that ECGD provides significant value to the UK economy, including to mid market companies and SME’s.  ECGD writes most of its direct business in support of major contractors, which have the necessary strength, know-how and marketing organisation to compete for and, when awarded, to execute major capital goods projects for overseas buyers.  However the economic benefits for the UK of ECGD’s support in terms of extra work and employment extend far deeper and wider through the UK economy through numerous sub contracts which such major companies place in the UK, often with SME’s.  Without ECGD support much of this business would not be awarded to UK mid market companies and SME’s.  This is the so called “trickle-down” effect and the EMSG provided examples of this in their paper.

      The new business which ECGD has written throughout the 1990’s has cost nothing to the UK tax payer.  On the contrary ECGD has built up substantial reserves which would enable it to withstand a high level of future losses without resorting to the public purse;

      Various specific recommendations for improvement to ECGD are made in the EMSG’s paper including:

-  immediate consideration should be given to restoring cover for certain markets where economic conditions can be seen to be improving;
-  ECGD should be given well defined goals and clear decision making autonomy (which will be subject to periodic review).  HMT should not continue to interfere in detailed decisions on cases and market limits;
-  specific reforms should be made to ECGD’s systems for calculating and pricing risk on overseas markets;
-  ECGD should develop adequate systems for evaluating corporate risks;
-  a sharpening of the focus of ECGD’s services for SME’s should be made;
-  where relevant, greater dialogue and integration between ECGD and other Government Departments (more “joined up government”) should occur;

      The EMSG paper concluded that ECGD provided worthwhile examples of successful public-private sector partnership.  It is very much a model of the “Third Way” succeeding in practice.