HC Deb 03 February 1947 vol 432 cc295-6W
Sir J. Mellor

asked the Chancellor of the Exchequer if he will quote the text of the Treasury's guarantee of the five per cent. Debenture Stock, 1931–57, of the North Metropolitan Power Station Company, Limited; and if he will give an assurance that the Government do not propose to impair this guarantee by legislation.

Mr. Glenvil Hall,

pursuant to his reply [OFFICIAL REPORT: 30th January, Vol. 432, Cols. 1115/6], supplied the following statement: My Lords read the Trade Facilities Act 1921 (11 and 12 Geo. 5, c. 65) which Act as amended and extended by subsequent legislation empowers the Treasury to guarantee the payment of the interest and principal, or of either interest or principal, of any Loan proposed to be raised whether within or without the United Kingdom by any Government any public authority or any corporation or other body of persons when after consultation with the Advisory committee established under the said Act, they are satisfied that the proceeds are to be applied towards or in connection with the carrying out of any capital undertaking or in connection with the purchase of articles (other than munitions of war) manufactured or produced in the United Kingdom required for the purposes of any such undertaking and that the application of the loan in the manner proposed is calculated to promote employment in the United Kingdom. My Lords have before them a recommendation hum the Trade Facilities Act Advisory Committee that a guarantee be given to the North Metropolitan Power Station Company Limited in respect of an issue of Guaranteed Debenture Stock for a sum not exceeding £850,000, the proceeds of which are to be expended in the carrying out of the works specified in the Agreement next mentioned. The terms of the said Loan and the conditions of the said guarantee as arranged with the North Metropolitan Power Station Company Limited are contained in an Agreement, dated 6th October, 1926, and made between the North Metropolitan Power Station Company Limited and My Lords. My Lords are satisfied that the conditions laid down in the said Act are fufilled in the case of this proposed Loan and They accordingly give Their guarantee for the payment of interest at the rate of 5 per cent. per annum on the said sum of not exceeding £850,000 Guaranteed Debenture Stock and for the repayment of the said sum of not exceeding,£850,000 Guaranteed Debenture Stock on the due dates.

Certified a true Copy,


Controller of Finance,