HC Deb 23 July 1929 vol 230 cc1079-80
58. Mr. LEIF JONES

asked the Financial Secretary to the Treasury the total of the guaranteed loans raised by the Royal Mail Steam Packet Company and its associated companies under the Trade Facilities Act; how much is repayable by the company each year in respect of capital and interest; and whether the Treasury has a first claim on the assets of these companies prior to the first and second debentures?

Mr. PETHICK-LAWRENGE

The following loans raised by subsidiary companies of the Royal Mail Steam Packet Company were guaranteed under the Trade Facilities Acts: £950,569 and £185,317 raised by the Royal Mail Steam Packet Meat Transports, Limited, and £325,000 by Messrs. MacAndrews and Company, Limited.

The first of these is not due for repayment until 1930, the second has been repaid, and the third is being repaid by instalments over the years 1928–36.

The security in each of these cases is a first specific mortgage on the vessels constructed out of the loan, together with, in the case of the first loan, the joint and several guarantee of the shipbuilders and the Royal Mail Steam Packet Company, and in the case of the third loan, first specific mortgages on other ships belonging to Messrs. MacAndrews.

Mr. JONES

Are the Government auditors satisfied that sums advanced under Government guarantees are amply secured?

Mr. PETHICK-LAWRENCE

I do not think that arises out of the question.

Mr. BRACKEN

How much employment has been created through these loans? Are there any figures available?

Mr. PETHICK-LAWRENCE

I should like to have notice of that question.

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