Minister for Industry and Economic Security (): The Shipbuilding Credit
Guarantee Scheme (SCGS) is a finance instrument that provides
guarantees to banks in respect of loans made to vessel owners and
operators seeking to place orders at UK shipyards. The scheme was
launched in July 2023 and the Department for Business and Trade
(DBT) is the accountable Department.
The Export Credits Guarantee Department (ECGD) (operating as UK
Export Finance, UKEF), acts as service provider to the
Department for Business and Trade via a Memorandum of
Understanding. UKEF manages enquiries and applications under the
scheme, as well as assisting with the set-up and implementation
of the scheme, and DBT covers resource and other costs. In order
to have the necessary approvals to progress actual transactions
(or potential transactions) on behalf of DBT, ECGD must apply for
a Contingencies Fund Advance to cover the Vote on Account period
in financial year 2024-25. This Contingencies Fund Advance of
£90,000 was made over recess, and I am notifying Parliament at
the earliest opportunity.
Parliamentary approval for additional resource of £90,000 for
this new service will be sought in a Main Estimate for Export
Credits Guarantee Department. Pending that approval, urgent
expenditure estimated at £90,000 will be met by repayable cash
advances from the Contingencies Fund.
