HC Deb 15 December 2003 vol 415 cc639-40W
Mr. Chaytor:

To ask the Secretary of State for Trade and Industry what plans she has to increase the current £200 million loan facility to British Energy; and when she expects to take a final decision on the future of the company. [141666]

Mr. Timms

[holding answer 11 December 2003]I refer my hon. Friend to the written statement made by my right hon. Friend the Secretary of State for Trade and Industry on 1 December 2003,Official Report, columns 50 and 51WS.

British Energy's proposed restructuring will not be implemented until all conditions, including receipt of European Commission State Aid approval, are met. The company has put a back-stop date of 31 January 2005 for the restructuring to be completed, although it is expected to be implemented before then.

If the Government are not satisfied that British Energy will be viable in all reasonable foreseeable conditions, or if there is a material adverse change in British Energy's position, the Government have reserved the right to withdraw its support for the restructuring. The Government remain ready for administration if any of the restructuring conditions are not met.