§ 22 and 23. Sir P. Agnewasked the Secretary of State for the Colonies (1) how much money he has advanced to Messrs. Bailey (Malta) Ltd. under the terms of the Financial Agreement of 11th September, 1959; and, of the amount involved, how much Messrs. Bailey have spent on the modification and improvement of the fixed assets and services of the dockyard in accordance with Clause 2 (a) of the Financial Agreement, and how much on any other purpose;
§ (2) he will furnish a statement giving the dates on which he has advanced sums of money to Messrs. Bailey (Malta) Ltd., the amount in each case, and the purpose for which the company borrowed the money; and if he will state the extent in each case to which the money concerned has been spent in carrying out that purpose.
§ Mr. Iain MacleodWith permission, I will circulate the Answer, which contains a number of figures, in the OFFICIAL REPORT.
§ Sir P. AgnewWill my right hon. Friend give a specific answer as to whether any of the money that has been advanced to Messrs. Bailey (Malta) Ltd. has been advanced otherwise than in accordance with Clause 2 (a) of the Financial Agreement? There is a great deal of public concern on this matter.
§ Mr. MacleodMy Answer, which includes a considerable number of figures, clears up any anxiety there may be on that matter. Of course, with regard to the expenditure of the sums, the accounting procedure is not yet finished.
§ Sir P. AgnewCould my right hon. Friend say, in particular, whether any money has been advanced to this firm in respect of its financing of a pension fund? If so, how is that provided for in the Financial Agreement?
§ Mr. MacleodNo, not for that purpose, but my hon. Friend is quite right—there have been considerable and prolonged discussions between the Government and Messrs. Bailey on the question of pension funds.
Following is the Answer:£1,35,74 has so far been advanced. On 6th October, 1959, an initial advance of £1,711,000 was made, comprising £1,200,000 for working capital, £230,000 for part payment for the moveable plant and machinery taken over from the Admiralty, and £281,000 for additional plant and machinery. Since then a further £124,574 has been made available, under Clause 2 (a) of the Financial Agreement, for the modification and improvement of the fixed assets and services of the dockyard. This sum is made up of advances of £61,478, £11,500. £31,773 and £19,823 made respectively on the 14th December. 1959, 29th January. 17th June and 15th July, 1960. With regard to the expenditure of these sums, the relevant accounting procedures are not yet completed.