HC Deb 23 February 1987 vol 111 cc61-2W
Mr. Teddy Taylor

asked the Chancellor of the Exchequer on what basis the European Investment Bank has agreed to discuss with Eurotunnel the provision of loan facilities to the Channel tunnel project; what part he took in the decision to take part in such discussions; and what interest rates and date of commencement for repayment have been discussed.

Mr. Brooke

Under the terms of its statute, the European Investment Bank can receive applications for loans direct from undertakings in the Community. The EIB management committee examines each application, including whether the proposed loan would comply with the provisions in article 130 of the Treaty of Rome and the EIB's own statute. If the management committee is in favour of granting a loan, it submits the proposal to the EIB's board of directors, which has sole power to grant loans. In the case of Eurotunnel, no loan proposal has yet been submitted to the EIB's board of directors. Therefore, at this stage, the terms of a possible loan are a matter for discussion between Eurotunnel and the EIB staff. The United Kingdom Government have indicated to the EIB that they are content for the EIB to consider a loan application from Eurotunnel and, if appropriate, to put a loan proposal to the EIB's board of directors, on the understanding that there is no question of a United Kingdom Government guarantee of a financial or commercial nature.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer if he will propose at the next meeting of the board of directors of the European Investment Bank that the proposed loan of £1 billion to the Channel tunnel project be not concluded; and if he will make a statement.

Mr. Brooke

My right hon. Friend the Chancellor of I he Exchequer is a member of the board of governors of the European Investment Bank. Under the statute of the 'BB, it is for the EIB's board of directors to decide whether, and on what terms, the EIB should grant a loan to Eurotunnel for the Channel tunnel project. The EIB has not so far put a loan proposal to its board of directors. If and when it does so, the proposal will be considered on its merits.