§ Mr. Sutcliffeasked the Secretary of State for the Environment, in view of the three-day week, to what extent the July 1975 completion date and £30 million estimated cost for phase 2 work on the Channel Tunnel are to be revised; and when he expects to receive the first progress report.
§ Mr. PeytonI am kept regularly informed of progress and understand that at the moment both the work on site and the manufacture of the tunnelling machine are on programme.
§ Mr. Sutcliffeasked the Secretary of State for the Environment whether he is satisfied that the Channel Tunnel sponsoring consortium is capable of meeting its obligation under the 5th Schedule of the Phase 2 Agreement to raise £4.2 million non-guaranteed equity capital by June 1974; if he has received representations from the sponsors to relieve them of any part of this obligation; and if he has granted any such relief.
§ Mr. PeytonI have received no such representations and I have no reason to believe that the British Channel Tunnel Company will not be able to comply with its obligations.
§ Mr. Sutcliffeasked the Secretary of State for the Environment to what extent Treasury guarantees on loans up to £35 million for Phase 2 Channel Tunnel work have been affected by counter-inflation measures; and what are the terms and conditions for such loans.
§ Mr. HigginsI have been asked to reply.
Such guarantees have not been affected by these measures. Bank borrowing of up to £13.5 million has been guaranteed by the Treasury. It is customary not to 303W disclose the terms and conditions on which such guaranteed loans are made.