HC Deb 19 February 1987 vol 110 cc828-9W
Mr. Teddy Taylor

asked the Chancellor of the Exchequer why he included contributions to the European Investment Bank within the amounts of the United Kingdom's contribution to the Community in the public expenditure Blue Paper; if this has been the traditional practice of Her Majesty's Government; if such contributions rank for calculation of United Kingdom abatement; and if he will make a statement.

Mr. Brooke

It is the established practice to include contributions to the European Investment Bank in the public expenditure White Paper under the heading "net payments to Community institutions" because the EIB is a Community organisation set up under the Treaty of Rome. Since the EIB's expenditure and revenue do not form part of the Community budget, our contributions to the EIB are not included in the White Paper figures for our net contribution to the Community budget. Nor do they rank for calculation of the United Kingdom abatement under the Fontainebleau agreement.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer what is the total sum which has been subscribed to the European Investment Bank by the United Kingdom since 1973; and what dividends have been received from this investment during those years.

Mr. Brooke

The subscribed capital of the European Investment Bank is 28,800 million ecus (at current exchange rates, about £21,429 million). The United Kingdom share of this is 5,509 million ecus (about £4,099 million). Only a small part of subscribed capital is actually paid in. Since 1973, United Kingdom payments have been £207.4 million.

Upon joining the EIB, the United Kingdom also paid a contribution of £20.1 million to the EIB reserves. Further, there is in progress at the moment a small redistribution of the reserves of the EIB resulting from a decision in 1985 that Italy should have the same subscribed capital as Germany, France and the United Kingdom; so far this has resulted in a rebate to the United Kingdom of some £4.4 million. The EIB does not pay dividends.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer what is the total sum which has been lent by the European investment bank since 1973; and what is the largest single loan offered for a project during the period.

Mr. Brooke

In the years 1973 to 1986, European Investment Bank own resources loans and guarantees totalled 44,016.5 million ecus. Using average £/ecu exchange rates for each of the years, this was approximately equivalent to £26,611 million. Of this total, 39,814.5 million ecus was for loans inside the Community, including loans in the United Kingdom totalling 7,957.0 million ecus (approximately equivalent to £4,842 million).

The EIB has lent for many large projects in the Community. Examples of large loans disbursed over a number of years include:

  1. (i) 1,952 million ecus for the European Gas Network (at current exchange rates roughly £1,450 million.)
  2. (ii) a billion ecus to the South of Scotland Electricity Board for development of its electricity network (at current exchange rates roughly £740 million).
  3. (iii) a billion ecus to Electricite de France.