§ Mr. J. Morrisasked the Minister of Power why the Government's security by way of a fixed charge on the Colville company's works is to rank after the debenture trust deed in course of preparation between the company and the Finance Corporation of Industry; when the first proposal to seek security for the Government loan was put to the company; when it was agreed that the Finance Corporation of Industry loan should take precedence over the Government's loan; and whether he will place a copy of the loan agreement in the Library.
§ Mr. ErrollThe proposal that the Government should have the right to take security was put to the Company in 1958 in the early stages of the negotiations leading up to the Heads of Agreement. Debenture holders at that date were secured by a first charge for £16 million on the Company's assets. Provision was therefore made for the Government to take a second charge. Of the first charge debentures, £6 million was convertible, and the Heads of Agreement record the Government's agreement that on conversion this part of the prior charge might be replaced by further borrowing with similar security. To the extent of £6 million the Finance Corporation of Industry loan takes the place of this part of the original prior charge. The Heads of Agreement have already been published in the OFFICIAL REPORT for 21st January. 1959, as I said in my answer of 24th February.