HC Deb 12 March 1987 vol 112 cc273-4W
Mr. Teddy Taylor

asked the Chancellor of the Exchequer if, in his capacity as director of the European Investment Bank, he will state whether it remains the policy of that bank that loans should be conditional on guarantees by member states or other first-class guarantors; and if he will make a statement on the guidance given by the board of the bank in this respect when it indicated that it was content for discussions to take place between officials of the bank and the promoters of the Channel tunnel for a loan of £1,000 million.

Mr. Brooke

[pursuant to his reply, 9 March 1987, c. 62.]: My right hon. Friend the Chancellor of the Exchequer is a member of the board of governors of the European Investment Bank.

The European Investment Bank must act in accordance with its statute. Article 18(3) requires: When granting a loan to an undertaking or to a body other than a Member State, the Bank shall make the loan conditional either on a guarantee from the Member State in whose territory the project will be carried out or on other adequate guarantees. The United Kingdom has made it clear to the European Investment Bank staff that, in the event that the EIB decides to make a loan to the Channel tunnel promoters, 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 what has been the total amount of public funds contributed and subscribed to the European Investment Bank since 1 January 1973.

Mr. Brooke

[pursuant to his reply, 9 March 1987, c. 62.]: The figures were given in my reply of 20 February 1987, at column 830.

Mr. Teddy Taylor

asked the Chancellor of the Exchequer what progress has been made in the discussions between officials of the European Investment Bank and the promoters of the Channel tunnel on a loan of £1,000 million; and if he will make a statement.

Mr. Brooke

[pursuant to his reply, 9 March 1987, c. 62.]: No proposal for a loan to the promoters of the Channel tunnel has yet been submitted to the European Investment Bank's board of directors. At this stage discussions on a possible loan are a matter for Eurotunnel and the EIB's staff.