§ 55. Mr. O'Malleyasked the Minister of Power if he will secure an agreement with Colvilles Limited, in respect of the loan to that company of £50 million from the Consolidated Fund and unpaid interest on that loan, that repayment of interest on that loan from public funds should take precedence over ordinary dividend distribution.
§ Mr. ErrollNo.
§ 56. Mr. O'Malleyasked the Minister of Power what security is being taken by Her Majesty's Government, and for how much, in respect of the loan of £50 million to Colvilles Limited from the Consolidated Fund, and unpaid interest on that loan; whether this is by the creation of a second debenture; what is its proposed amount and nature; and what was the amount and nature of the first debenture.
§ Mr. ErrollAs provided for in 1959 loan agreement, a fixed charge is being created upon the company's works, and an assignment is being made of the company's reversionary rights in the shares of subsidiaries for the amount of the loan and interest outstanding at any time. This security will rank immediately after an existing debenture trust deed for £10 million stock, and a debenture trust deed for a maximum of £6 million being prepared in respect of a loan agreement between the company and the Finance Corporation for Industry, under which £2.5 million has so far been advanced.