§ Mr. Wardasked the Secretary of State for Industry whether he will make a statement about Rolls-Royce's overseas borrowing arrangements.
§ Mr. Norman LamontAs part of its agreed external funding arrangements, Rolls-Royce Ltd. intends to make, through a United States subsidiary, a commercial paper loan issue in the United States of America up to a total value of $250 million. The obligations of this subsidiary in respect of the issue are to be guaranteed by Rolls-Royce Ltd. and I have given a guarantee under section 3(2)(c) of the Industry Act 1980 of Rolls-Royce Ltd. 's obligations under its guarantee.
To enable Rolls-Royce Ltd. to obtain terms commensurate with its status as a borrower guaranteed by Her Majesty's Government, the Government have informed those concerned with the commercial paper issue that, in the unlikely event of any call being made on the guarantee, money would, under present law and existing practice, be made available from the Contingencies Fund, if necessary, immediately and in advance of moneys being voted by Parliament as contemplated by section 3(6) of the Industry Act 1980.