§ 77. Mr. ORMSBY-GOREasked the Chancellor of the Exchequer whether the sum of £350,900 per annum has been received to date from the Soudan Government in respect of the guarantee given by the British Government under the Soudan Loan Act, 1919, or whether any charge in respect of guaranteed interest has fallen on the British Treasury; whether it is now anticipated that, owing to the under-estimation of the cost of the Blue Nile dam and Gezira schemes, the contingent liability of the British taxpayer will become an actual one; and, if so, to what extent?
§ Sir R. HORNEI have no reason to suppose that the Soudan Government will not continue as hitherto to meet the interest payments as they fall due, without recourse to the British Government guarantee.
§ Mr. ORMSBY-GOREDoes that mean that the Soudan Government have a surplus revenue over expenditure this year?
§ Sir R. HORNEIt means that the income which will ultimately be yielded upon the undertaking will be sufficient not merely to cover interest upon capital, at present expended, but also upon the capital that may be further required.
§ Earl WINTERTONIs the right hon. Gentleman aware that this undertaking has earned no money and is absolutely brought to an end; and is he aware that the Soudan Government has never had a surplus, but has had the greatest difficulty in making ends meet?
§ Sir R. HORNEI did not say that they had a surplus. I said that the income they will make when the undertaking is in working order will be more than sufficient to pay the interest on capital expenditure, and on any further capital that may be required.
§ Earl WINTERTONIs the right hon. Gentleman aware that it was announced the other day that the undertaking was held up altogether, and that it is not in a revenue bearing position? What is going to be done meanwhile?
§ Sir R. HORNEI have not learned that there is any difficulty in raising the necessary capital.