HC Deb 02 March 1972 vol 832 cc175-6W
Mr. Prescott

asked the Secretary of State for Trade and Industry how much public money has been loaned to the Cunard Steamship Company; and how much specifically for the construction of Queen Elizabeth 2 under the Shipbuilding Credit Act, 1964, and the Industrial Expansion Act, 1968.

Mr. Anthony Grant

Two agreements made with Cunard in 1968 under the Industrial Expansion Act, 1968, provided for governmental loans of up to £24 million towards the cost of completing the Queen Elizabeth 2. £19½ million of this was actually taken up, of which £7½ million was lent to the Cunard Steamship Company at the rate of 4½ per cent., while £12 million was lent to the subsidiary Cunard Line Ltd. at a rate of 4½ per cent. until 1972, the rate of interest thereafter on the outstanding balance of the loan to be the subject of negotiation. No loans were made to Cunard under the Shipbuilding Credit Act, 1964.

Mr. Prescott

asked the Secretary of State for Trade and Industry how much of the public loans made to the Cunard Steamship Company has been repaid and at what rate of interest; what amounts remain outstanding at what rate of interest and for how long they have been outstanding.

Mr. Anthony Grant

Two loans have been made to Cunard. £7½ million was to the parent company to be repaid in five years and of this £5.75 million has been repaid. The rate of interest on this loan is 4½ per cent. £12 million was lent to the subsidiary Cunard Line Ltd. This loan is due to be repaid at the rate of £1 million a year and is being repaid at that rate; £9½ million remains outstanding. The rate of interest is 4½ per cent. until April, 1972, and has to be renegotiated after that.