§ 48. Mr. LAMBERTasked the Chancellor of the Exchequer whether the Treasury has approved the estimate of £2,588,894 for the Zambesi Bridge scheme; and, if so, what proportion of that sum is to be borne by the British Exchequer?
§ Mr. P. SNOWDENThe Zambesi Bridge scheme has been approved by the Treasury at a total estimated cost of £3,062,354, including connected railway extensions. The expenditure will be financed by the Nyasaland Government out of the proceeds of a guaranteed loan to be raised under the Palestine and East African Loans Act, 1926, and that Government will receive free grants not exceeding £500,000 from the Colonial Development Fund, which fund is provided out of moneys voted by Parliament.
§ Mr. LAMBERTIs £500,000 the total cost to the British Exchequer?
§ Mr. SNOWDENYes.
§ Mr. LAMBERTIs it £500,000 a year, or is £500,000 the total?
§ Mr. SNOWDENIt is £500,000 altogether, and it will go in meeting interest charges.
§ Mr. ORMSBY-GOREWill the right hon. Gentleman make it quite clear how this transaction will stand when it is completed—that is to say, what is the ultimate liability of the Nyasaland taxpayer, and what is the ultimate liability of the British taxpayer?
§ Mr. SNOWDENIf the cost of the construction is just over £3,000,000, and the British Exchequer is responsible for £500,000, the liability of the Nyasaland Government, I suppose, would be £2,500,000.
§ Mr. LAMBERTSupposing that the Nyasaland taxpayer fails to meet the liability, will the British taxpayer then be called upon?
§ Mr. SNOWDENIt is, as I have said, a guaranteed loan.
§ Lieut.-Commander KENWORTHYWill my right hon. Friend remember this case when we come to him for money for the Humber bridge?