Media release
Australian Minister for Trade, Mark Vaile
Friday, June 23, 2000
MVT65/2000
Review of Export Credit and Finance Services
Trade Minister, Mark Vaile, today announced a review of private market developments in export credit and finance services, and the role of government in their provision through the Export Finance and Insurance Corporation (EFIC).
"These services are a key factor in promoting Australian exports", Mr Vaile said. "The Government has traditionally played an important role in facilitating the provision of export credit insurance and finance services to Australian exporters.
"Recognising that the private market has not always had the capacity to meet fully the needs of Australian exporters, EFIC is mandated to meet the market gap in the national interest - in terms such as promoting exports and export diversification, employment opportunities and economic growth."
Mr Vaile said that in 1998-99, $7.6 billion of exports had been backed by finance or insurance from EFIC, and that EFIC had played a vital role in helping exporters and their banks keep exports flowing during the East Asian economic crisis when the private market had significantly withdrawn from the region.
"These are examples of the Government filling a market gap, complementing the capacity of the commercial market. However, that gap changes as the private market evolves, as private market appetite for risk waxes and wanes, and as the needs of exporters change. It's important to know how the needs of Australian exporters are changing, and to get views on the capacity of the commercial market to provide, on a sustainable basis over time, adequate services to meet those needs.
"This is what the review is about, and such reviews are periodic … to see how the demand for, and availability of, these services is going, and what this means for continued government involvement."
Mr Vaile said the review would take into account international developments, including the activities of other governments in export credit and finance services in an increasingly competitive and globalised market.
The Department of Foreign Affairs and Trade will conduct the review with the assistance of an Inter-Departmental Steering Committee. The review is to be completed by November 2000. To help ensure a broad process of consultation, the Department of Foreign Affairs and Trade invites written submissions from exporters, insurers and financiers and other interested parties. Further information on the review can be obtained from the Department of Foreign Affairs and Trade's website: www.dfat.gov.au