§ Lord TREFGARNE
asked Her Majesty's Government:
Why they were obliged to guarantee a recent loan of £2 million to the Civil Aviation Authority, as announced on 10th May, while the British National Oil Corporation is apparently able to raise loans without such a guarantee.636WA
§ Baroness BIRK
The Civil Aviation Authority together with most other statutory corporations maintains a temporary borrowing facility with the clearing banks which is covered by Treasury guarantee. The Treasury guarantee to the CAA of£2 million, a statement of which was laid before the House on 10th May, was a renewal of a Treasury guarantee for a similar amount previously issued to the Authority. A new guarantee was necessary because of a revision of the interest rates applicable to the loan. The recent 823 million dollar financing by BNOC was undertaken against a commitment by BNOC to provide sufficient oil to amortise the debt.
House adjourned at seventeen minutes past four o'clock.