§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer if he was consulted in his capacity as director of the European investment bank over the recent decision to extend the loan to the channel tunnel company by a further £300,000,000; and which body or organisation provided a guarantee for this further loan.
§ Mr. RyderCommunity Finance Ministers and the Chancellor of the Exchequer form the board of governors of the European investment bank. The board of directors is composed of senior officials and private sector representatives from the member states. In accordance with European investment bank procedure, the loan to Eurotunnel was approved by the board of directors.
The loan is guaranteed on the same basis as the European investment bank's previous loan to Eurotunnel: that is, by means of letters of credit from a group of first-class commercial banks, and a pro rata share with the syndicate banks in the charge on the project revenues and assets.
§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer what is the normal practice of the European investment bank in seeking guarantees for loans; and if he will make a statement.
§ Mr. RyderThe statutes of the European investment bank state that
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 guarantee for each project is determined on a case by case basis.
§ Mr. WallaceTo ask the Chancellor of the Exchequer what recent assessment he has made of the impact on the Scotch whisky industry resulting from the elimination of intra-European Community duty free trade; and if he will make a statement.
§ Mr. RyderThere are no formal proposals in this area but the Commission have made it clear that as a consequence of the completion of the single market, duty-free shopping for intra-community travel should cease.
The Government understand the Commission's view that it makes no sense to grant a tax concession for crossing a frontier when fiscal frontiers have been abolished. Equally, the Government are aware of the economic significance of the United Kingdom duty-free trade.
The Scotch whisky industry and others have made representations about the effects of abolishing duty-free shopping within the Community. The Government will examine all the arguments carefully before any decisions are reached within the Community.