§ Mr. Iain Millsasked the Secretary of State for Trade whether he intends to grant funds for the expansion of Birmingham airport now that the planning application has been granted.
§ Mr. TebbitA grant towards the cost of the new terminal at Birmingham airport will be made in accordance with my Department's commitments under the agreement of 28 March 1960 made between the Minister of Aviation and the then city of Birmingham.
§ Mr. Iain Millsasked the Secretary of State for Trade, in view of the attempt by West Midlands county council to obtain EEC funds for the expansion of Birmingham airport, if he will reduce any funds granted by his Department for this project by an amount equivalent to any amount received from the EEC ; and if he will make a statement.
§ Mr. TebbitI understand that the West Midlands county council may seek to borrow funds from the European Investment Bank for that part of the terminal project for which it is granted key sector loan sanction. There is no provision in the agreement of 28 March 1960 for the amount of grant payable by my Department to be abated in respect of such a loan. The source of borrowing is a matter for the authority.
§ Mr. Iain Millsasked the Secretary of State for trade if he is satisfied that funds granted by his Department for the expansion of Birmingham airport meet Her Majesty's Government's policy on public expenditure.
§ Mr. TebbitYes.