§ Mr. Spearingasked the Secretary of State for the Environment whether he has considered the Port of London Authority's application for an increase in its temporary borrowing powers under Section 49 of its 1968 Act; and whether he will make a statement.
§ Dr. GilbertThe Authority has asked me both for an extension of its temporary borrowing powers and for longer-32W term assistance. The scale and nature of any such assistance, and the conditions attached to it, must be given close and detailed consideration. To enable this to be done, I am, with the Authority's agreement, appointing Mesrs. Price Waterhouse and Co. to examine the Authority's present financial position and its forecasts for future years.
The Authority has for some months been taking action to strengthen its financial position, which has been affected a number of factors, including adverse trading conditions. Progress has been kept under review since August 1975 by a joint working group on which this Department and the National Ports Council are represented, as is the Authority. The Authority has in addition informed me of its intention to appoint consultants to carry out a review of management organisation with special reference to the needs and problems of the next few years.
Meanwhile, I have sanctioned an increase from £12 million to £13 million in the Authority's temporary borrowing limit to enable it to take up agreed additional overdraft facilities. I have also told the Authority that I am prepared to consider sanctioning further temporary borrowing up to a new maximum limit of £18 million.