§ Mr. Skinnerasked the Minister of Overseas Development if she will make a statement on the present position with regard to the Crown Agents' investment in Australian property.
§ Mrs. HartMy predecessors and I have discussed with the Crown Agents how my directive in 1975 that they should carry out an orderly phased withdrawal from the secondary banking and property fields should be applied to their investments in the Abbey Capital Property Group in Australia. It was clear that the Crown Agents could not be certain of implementing any strategy to this end as minority shareholders in the group, even though they had put up almost all the development finance. They were, therefore, authorised to negotiate with the other interests involved with a view to securing full control of the group. They have now succeeded in obtaining this at a reasonable cost. They have also been able to strengthen their management arrangements for the group, both in Australia and in London.
92WI have made it clear to the Crown Agents that I shall wish for continuing consultations about the strategy to be followed in conducting the affairs of the group, which must take account of trends in the Australian market. I intend to review with the Crown Agents their policy for the group at regular intervals in the light of market trends, and have asked the Crown Agents for six-monthly reports.
Meanwhile, the Crown Agents have to meet or refinance certain existing obligations in Australia. For this purpose I have agreed that they should borrow up to US $220 million from a consortium of United Kingdom banks, of which US $210 million is to be used in Australia and US $10 million for commitments elsewhere. An agreement to this end has been concluded with my approval. I would stress that this does not mean an expansion of the Crown Agents' interests in Australia, but is required solely to meet existing commitments.