HC Deb 23 February 1987 vol 111 cc23-4W
Mr. Teddy Taylor

asked the Secretary of State for Transport, pursuant to the statement of the hon. Member for Hampshire North-West (Mr. Mitchell) of 3 February, Official Report, column 869, under what authority the European Investment Bank proposes to make loan finance available to Eurotunnel with the contingent liability borne by the clearing banks of member states; and if he will make a statement.

Mr. David Mitchell

The EIB is an independent entity and, subject to the provisions in its statute, requires no authority to propose such a loan to its board of directors.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will make a further statement on the policy of Her Majesty's Government on the provision of public funds for the Channel tunnel project in the light of the negotiations between Eurotunnel and the European Investment Bank of a facility of £1 billion.

Mr. David Mitchell

Any loans from the EIB to Eurotunnel would not be public money and repayment would not be guaranteed by Governments. The bank obtains its operating resources mainly by borrowing, in its own name and on its own credit, in domestic and international capital markets.