HL Deb 16 March 1998 vol 587 cc114-5WA
Lord Berkeley

asked Her Majesty's Government:

What are the heads of terms of the Intergovernmental Agreement between the British and French Governments on the Channel Tunnel signed on 13 February; and whether they will place a copy of the full agreement in the Library of the House. [HL967]

Baroness Hayman

The heads of agreement signed on 13 February 1998 by the British and French Governments and by Eurotunnel incorporate commercial undertakings by Eurotunnel which it would not be appropriate to place in the Library of the House. A formal amendment to the Channel Tunnel Concession Agreement is being drafted; this, like the two previous amendments to that agreement, will be published as a Command Paper and will be deposited in the Library.

The conditions upon which the extension of Eurotunnel's concession was granted are:

obtaining all approvals and clearances required to implement the measures in the agreement;

implementation of the commitments of the parties to Eurotunnel's Financial Restructuring Proposals of May 1997;

Eurotunnel entering into an agreement whereby, in return for extending the concession and throughout the duration of that extension, Eurotunnel will pay to the two governments a total annual sum, including all forms of corporation tax, equal to 59 per cent. of the pre-tax profits;

the parties to the usage contract agreeing not to extend that contract in line with the extension of the concession.

The agreement also makes clear that the extension is granted to the benefit of Eurotunnel only, and will not come into effect if substitution under Clause 32 of the concession agreement is in place at 28 July 2052.