§ Mr. Adleyasked the Secretary of State for Transport (1) if he will make a statement about the new arrangements he has agreed with his French counterpart on the channel tunnel;
(2) if he will make a statement on the revised arrangements for the channel tunnel political guarantees vis-à-vis the public sector borrowing requirement pursuant to arrangements recently agreed between the French Government and Her Majesty's Government.
§ Mr. RidleyThe basis of my agreement with French Ministers on 14 November, was that the two Governments remain willing to take the necessary steps to facilitate the construction of a link if a satisfactory proposal comes forward that can be financed without support from public funds or Government financial guarantees. It was agreed to set up a working group of officials to prepare guidance to potential promoters. I have placed a copy of the communiqué issued on that occasion in the Library.
The Governments consider that political guarantees would be necessary to cover the possibility of failure by either Government to permit the project to proceed to completion. The giving of such guarantees would not affect the public sector borrowing requirement.