§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer what are the present borrowing limits of the European investment bank; what sum they have borrowed to date; and if he will make a statement outlining the manner in which the bank raises its borrowing.
§ Mr. NelsonThere is no quantitive limit on the bank's power to borrow; however, it will do so only to the extent that it needs to raise money to finance its lending operations. Its total outstanding lending is limited by its statute to 250 per cent. of its subscribed capital. Since this currently stands at 57.6 million ecu, lending is limited to 144 million ecu. During 1992, the latest period for which final figures are available, the bank borrowed a total of 12,920 million ecu, and at the year end, total outstanding borrowings stood at 67,949,420,610 ecu. The bank raises the bulk of its funds from the international capital markets.
§ Ms HarmanTo ask the Chancellor of the Exchequer if he will publish a table setting out(a) the amounts borrowed from the European investment bank in 1992 and (b) estimates for the amount borrowed in 1993 by British borrowers by category of borrower.
§ Mr. Nelson[holding answer 16 December 1993]: The information is as follows:
EIB lending to the United Kingdom £ million 1 January 1992 to 31 December 1992 Water and sewage projects in England and Wales 496.2 Private sector transport (including Channel tunnel) 264.5 Energy (power generation and North Sea oil) 520.0 Industrial investment 251.9 Local authority infrastructure (including water and sewage projects in Scotland) 263.0 Total 1,795.0 1 January 1993 to 31 December 1993 (provisional estimate) Water and sewage projects in England and Wales 700.0 Private sector transport (including Jubilee Line Extension) 282.0 Energy (power generation and North Sea oil) 444.7 Industrial investment 55.0 Telecommunications 300.0 Global loan (loan to Barclays Bank for on-lendings to small and medium sized enterpries) 100.0 Local authority infrastructure (including water and sewage project in Scotland) 463.5 Total 2,345.2
974W
Promoter Project £ million Eurotunnel Channel Tunnel 139.7 Seven River Crossings plc Severn road bridge 66.0 Gwent County Council Road schemes 30.0 West Galmorgan County Council Road schemes 23.0 Strathclyde Regional Council 1Road and other 100.0 South Galmorgan County Council 1Road and other 50.0 Humberside County Council Road and runway extension 24.0 Lothian Regional Council 1Road and other 21.0 Greater Manchester PTA and Greater Manchester PTE Manchester Light Railway 15.0 British Airways Renewal of long haul jet fleet 58.8 1NB Only a part of these loans were intended to finance transport projects. The reminder was devoted to other infrastructure works.
§ Mr. DobsonTo ask the Chancellor fo the Exchequer what is the number and the total value of loans from the European investment bank in 1992–93 and so far this year, giving a breakdown between loans to the private sector and public sector.
§ Mr. Nelson[holding answer 16 December 1993]: In 1992, the bank lent a total of £1,795.6 million for 27 separate projects in the United Kingdom, of which £263 million—seven projects—was lent to the public sector and £1,532.6 million—20 projects—was lent to the private sector. The final figures for lending this year are not yet available, but the latest information we have suggests that the bank may lend about £2,345 million to some 27 projects, of which £464 million—13 projects—may be lent to the public sector and £1,881 million—14 projects—may be lent to the private sector.
§ Ms HarmanTo ask the Chancellor of the Exchequer how much assistance the European investment bank has given to(a) the second Severn crossing and (b) the Manchester light railway.
§ Mr. Nelson[holding answer 16 December 1993]: The bank has provided a loan of £66 million towards the construction of the second Severn crossing, and £15 million towards construction of the first phase of the Manchester light railway.
§ Mr. DobsonTo ask the Chancellor of the Exchequer who is responsible for paying the interest on European investment bank loans paid to the private sector.
§ Mr. Nelson[holding answer 16 December 1993]: All borrowers from the bank are responsible for paying the interest due on their loans.
§ Mr. DobsonTo ask the Chancellor of the Exchequer (1) if he will list all the transport porjects financed in whole or part by the European investment bank, giving the sum borrowed in each case;
(2) if he will list the transport projects in which loans from the European investment bank were made to the private sector, giving the sum in each case.
§ Mr. Nelson[holding answer 16 December 1993]: In 1992, the letest year for which we have final figures, the EIB lent the following amounts to transport projects in the United Kingdom: