11:00am Saturday 13th March 2010
By Chris Hopper
A MAJOR Blackburn company says its growth is being hampered because of a lack of action by the Government.
Wallpaper manufacturer Graham and Brown, based in Harwood Street, Furthergate, said its export business had been hit because ministers have so far refused to offer credit protection for British companies selling abroad.
Bosses believe they could sell wallpaper worth £18million in Russia - and create new jobs in East Lancashire - if a scheme insured their liabilities while invoices were paid.
But with insurers reluctant to cover exporters following the recession, Graham and Brown wants the Government to step in, as has happened elsewhere in Europe.
The company’s case has even been taken up to the corridors of power by Blackburn MP and Justice Secretary Jack Straw.
Graham and Brown chief executive Andrew Graham said: “When we make a product, we might give a company 30 days to pay.
“If that company is from Britain and goes bust, it is not a problem, but if they are in Russia it becomes a big problem.
“We are trying to build a large export market but to do that we need some cover.”
Currently, Graham and Brown has an annual turnover of more than £100million, with a Russian export market worth several millions.That could be massively boosted if the firm had cover to sell in lucrative emerging markets such as the Middle East and the Far East.
It is understood that Mr Straw has raised the issue of export credit insurance at cabinet level with colleagues including Chancellor Alastair Darling and Business Secretary Lord Mandelson. Talks are said to be continuing.
Mr Graham said: “If we are to get Britain back on its feet we need to export but for that we need the insurance.
“We could massively increase our overseas market if we had it and if we could do that we could also create more jobs back in Blackburn.”
Mr Straw was unavailable for comment.
© Copyright 2001-2012 Newsquest Media Group
http://www.lancashiretelegraph.co.uk/trade_directory/