BORROWING POWERS ETC

HC Deb 05 November 1975 vol 899 cc449-51

Lords Amendment: No. 3, in page 6, line 6, leave out temporarily, by way of overdraft or otherwise,

Mr. John Smith

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Deputy Speaker

With this amendment we are to consider Lords Amendments No. 4 and 5.

Mr. Smith

The effect of the amendment is to enable the BNOC to borrow long term in sterling from sources other than the Secretary of State and the organs of the European Communities. For reasons which were explained in another place, it is not usual to allow this option to nationalised industries. The view has been taken in the past by Governments of both major parties that the direct involvement of nationalised industries in the market is likely to disrupt and increase the cost of borrowing of the Government concerned. However, in the case of the BNOC there are likely to be joint financing operations with parts of the Corporation's production licences. This may involve borrowing in sterling or having to make currency loans of which sterling is a component. We feel that the Corporation should be able to play its part in these operations like any other licensee. That is the underlying reason for this and the subsequent Lords amendments, which are felt to be a desirable addition to the Bill.

Question put and agreed to.

Subsequent Lords amendments agreed to.