§ Mr. Teddy Taylorasked the Prime Minister, pursuant to her reply of 2 March, Official Report, column 463, what procedures will be adopted by the Chancellor of the Exchequer in his capacity as a Director of the European Investment bank to identify and separate those funds 659W provided by Her Majesty's Government to the bank when he and other directors consider the loan application from the promoters of the Channel tunnel; and if he will make a statement.
§ The Prime MinisterMy right hon. Friend the Chancellor of the Exchequer is a member of the Board of Governors of the European Investment bank.
The bank borrows on the capital markets to finance its project loans. The funds paid by Governments are contributions to the bank's subscribed capital which supports the general operations of the bank and enables it to raise finance on the capital markets. It would not therefore be appropriate to link contributions to subscribed capital with particular projects.