HC Deb 14 June 1978 vol 951 cc560-1W
Mr. Spearing

asked the Secretary of State for Transport if he will make a further statement about the financial position of the Port of London Authority.

Mr. William Rodgers

Since my statement to the House on 8th May, the Port of London Authority has continued to keep me closely in touch with its urgent examination of its financial situation and of the various courses of action that might be taken to restore viability. I have been encouraged by the constructive and responsible manner in which all parties concerned have reacted to the propositions put forward by the Authority for consideration.

There is merit in letting the parties continue to discuss the steps that are needed with a view to reaching mutually acceptable solutions in so far as that may be possible. But when I receive firm proposals from the Authority, which as I have told it should be designed to chart a path to viability and a secure future, I shall be in a position to complete my consideration of ways in which the Government might assist.

Meanwhile, Lazard Bros and Co. Ltd., as agent for certain banks which agreed in June 1977 to make available a loan of £15 million—not yet fully taken up—for severance payments for surplus staff and for the refinancing of certain short-term borrowings on the understanding that the Government stood behind this loan, has asked whether this understanding remains valid, and I have assured the company that it does.