European Investment Bank Loans (Hansard, 22 October 1976)

§ Mr. Goodlad
asked the Chancellor of the Exchequer how many loan applications originating from (a) the United Kingdom (b) the North-West of England and (c) Cheshire, have been refused by the European Investment Bank in 1974 and 1975; and what grounds have been given for their refusal.

§ Mr. Robert Sheldon
Negotiations between the European Investment Bank and potential borrowers are confidential and this information cannot be disclosed.

§ Mr. Goodlad
asked the Chancellor of the Exchequer how many loans have been obtained from the European Investment Bank in 1974 and 1975 by companies and bodies in the Cheshire; and what have been the principal amounts, rates of interest and repayment terms.

§ Mr. Robert Sheldon
The European Investment Bank did not grant any loans for projects in Cheshire in either 1974 or 1975.

§ Mr. Goodlad
asked the Chancellor of the Exchequer how many loans have been obtained from the European Investment Bank in 1974 and 1975 by companies and bodies in the North-West of England; and what have been the principal amounts, rates of interest and repayment terms.

§ Mr. Robert Sheldon
The European Investment Bank did not grant any direct loans for projects in the North-West of England in 1974 and 1975. In 1974 two projects were, however, financed from loans provided by the bank to the Industrial and Commercial Finance Corporation for on-lending to small and medium-sized firms in the assisted areas. Details are as follows:

§ Mr. Robert Sheldon
In 1974 the European Investment Bank granted nine loans totalling £79.9 million and, in 1975, 16 loans totalling £186.5 million for companies and bodies in the United Kingdom. The details are:
595W

EUROPEAN INVESTMENT BANK LOANS, 1ST JANUARY 1974 TO 31ST DECEMBER 1975

Borrower Amount Terms Project

1974—

North of Scotland Hydro-Electric Board. 10.4 20 years at 9½ per cent. Peterhead Power Station Aberdeenshire.

Elf Oil (UK)

Total Oil (UK) 10.4 10 years at 9⅞ per cent. Development of the Frigg gas field in the North Sea.

Aquitaine Oil (UK)

Kent and Essex County Councils. 7.0 10 years at 10½ per cent. Second Dartford Tunnel.

British Steel Corporation 8.0 12 years at 10½ percent. New Sinter plant at Port Talbot Steel Works.

British Steel Corporation 12.0 12 years at 10½ per cent. Construction of bar mill at Thryburg Steelworks near Rotherham.

Industrial & Commercial Finance Corporation. 10.0^* 10 years at 1½ per cent. For on-lending to small and medium sized firms in the development areas.

Lewis Offshore Ltd 4.0 8 years at 10½ per cent. Development of a construction yard at Arnish Point in the Hebrides for the assembly of equipment for offshore oil exploration and production.

Electricity Council 15.6 12 years at 10½ per cent. Nuclear Power Station at Hartlepool.

Short Bros & Harland Ltd., Belfast. 2.5 5 years at 10½ per cent. Development of low-cost commuter aircraft at the company's factory in Belfast.

1975—

South of Scotland Electricity Board. 15.6 12 years at 9⅞ per cent. Hunterston B Nuclear Power Station.

Electricity Council 7.8 12 years at 9⅞ per cent. Nuclear Power Station, Hartlepool.

Distillers Company 12.0 10 years at 9½ per cent. Whisky blending and bottling factory at Shieldhall, near Glasgow.

South of Scotland Electricity Board 7.8 12 years at 9½ per cent. Hunterston B Nuclear Power Station.

National Coal Board 7.2 10 years at 9½ per cent. Extension and modernisation of five coal mines in Yorkshire and South Wales.

British Gas Corporation 24.2 10 years at 9¼ per cent. New pipeline system to bring natural gas from the Frigg Field to Scotland and connect up with the national distribution grid.

British Gas Corporation 23.6 10 years at 9¼ per cent. Second phase of extension to the natural gas transmission system to permit deliveries of gas from the Frigg Field.

Tate & Lyle 1.6 10 years at 9½ per cent. Glucose factory at Goole, Yorkshire.

Post Office 17.5 10 years at 9½ per cent. Modernisation of telecommunications in Wales and the Borders.

National Water Council 7.5 12 years at 9½ per cent. Kielder water scheme, North East England.

British Steel Corporation 17.5 10 years at 9½ per cent. Installation of new coating lines at Shotton, North Wales.

South of Scotland Electricity Board 10.0 8 years at 9½ per cent. Power lines to connect Inverkid power station with the maip transmission system.

North of Scotland Hydro-Electricity Board. 10.0 8 years at 9½ per cent. Power lines to connect Peterhean North power station with the main transmission system, and to reinforce supply system to Aberdeen.

British Railways Board 6.3 8 years at 9½ percent. Construction of "merry go-round" coal wagons.

Shetland Island Council 16.9 10 years at 9½ per cent. Oil tanker harbour at Sullom Voe in the Shetlands.

Olivetti International 1.0 5 years at 9½ per cent. Conversion and expansion of the British Olivetti typewriter factory in Glasgow.

^* Lapsed in November 1975 after only £600,000 had been drawn.

596W

EUROPEAN INVESTMENT BANK LOANS, 1ST JANUARY 1974 TO 31ST DECEMBER 1975
Borrower	Amount	Terms	Project
1974—
North of Scotland Hydro-Electric Board.	10.4	20 years at 9½ per cent.	Peterhead Power Station Aberdeenshire.
Elf Oil (UK)
Total Oil (UK)	10.4	10 years at 9⅞ per cent.	Development of the Frigg gas field in the North Sea.
Aquitaine Oil (UK)
Kent and Essex County Councils.	7.0	10 years at 10½ per cent.	Second Dartford Tunnel.
British Steel Corporation	8.0	12 years at 10½ percent.	New Sinter plant at Port Talbot Steel Works.
British Steel Corporation	12.0	12 years at 10½ per cent.	Construction of bar mill at Thryburg Steelworks near Rotherham.
Industrial & Commercial Finance Corporation.	10.0^*	10 years at 1½ per cent.	For on-lending to small and medium sized firms in the development areas.
Lewis Offshore Ltd	4.0	8 years at 10½ per cent.	Development of a construction yard at Arnish Point in the Hebrides for the assembly of equipment for offshore oil exploration and production.
Electricity Council	15.6	12 years at 10½ per cent.	Nuclear Power Station at Hartlepool.
Short Bros & Harland Ltd., Belfast.	2.5	5 years at 10½ per cent.	Development of low-cost commuter aircraft at the company's factory in Belfast.
1975—
South of Scotland Electricity Board.	15.6	12 years at 9⅞ per cent.	Hunterston B Nuclear Power Station.
Electricity Council	7.8	12 years at 9⅞ per cent.	Nuclear Power Station, Hartlepool.
Distillers Company	12.0	10 years at 9½ per cent.	Whisky blending and bottling factory at Shieldhall, near Glasgow.
South of Scotland Electricity Board	7.8	12 years at 9½ per cent.	Hunterston B Nuclear Power Station.
National Coal Board	7.2	10 years at 9½ per cent.	Extension and modernisation of five coal mines in Yorkshire and South Wales.
British Gas Corporation	24.2	10 years at 9¼ per cent.	New pipeline system to bring natural gas from the Frigg Field to Scotland and connect up with the national distribution grid.
British Gas Corporation	23.6	10 years at 9¼ per cent.	Second phase of extension to the natural gas transmission system to permit deliveries of gas from the Frigg Field.
Tate & Lyle	1.6	10 years at 9½ per cent.	Glucose factory at Goole, Yorkshire.
Post Office	17.5	10 years at 9½ per cent.	Modernisation of telecommunications in Wales and the Borders.
National Water Council	7.5	12 years at 9½ per cent.	Kielder water scheme, North East England.
British Steel Corporation	17.5	10 years at 9½ per cent.	Installation of new coating lines at Shotton, North Wales.
South of Scotland Electricity Board	10.0	8 years at 9½ per cent.	Power lines to connect Inverkid power station with the maip transmission system.
North of Scotland Hydro-Electricity Board.	10.0	8 years at 9½ per cent.	Power lines to connect Peterhean North power station with the main transmission system, and to reinforce supply system to Aberdeen.
British Railways Board	6.3	8 years at 9½ percent.	Construction of "merry go-round" coal wagons.
Shetland Island Council	16.9	10 years at 9½ per cent.	Oil tanker harbour at Sullom Voe in the Shetlands.
Olivetti International	1.0	5 years at 9½ per cent.	Conversion and expansion of the British Olivetti typewriter factory in Glasgow.
^* Lapsed in November 1975 after only £600,000 had been drawn.