Orders of the Day — Channel Tunnel Bill

Part of the debate – in the House of Commons am 12:00 am ar 5 Rhagfyr 1973.

Danfonwch hysbysiad imi am ddadleuon fel hyn

If this Bill is passed, the money for the tunnel would be raised from private sources. At least 10 per cent., or about £85 million, would be risk money; the remainder would attract Government guarantees. It is not expected that the guarantees would ever be called, and it is not expected that any net direct public expenditure will be incurred on the tunnel, although there will be public expenditure on the associated rail link. Extensive studies have shown that the tunnel is likely to be a worth while and profitable investment, even on pessimistic assumptions. In recent debates, some hon. Members have taken the line that if this is to be a profitable venture the Governments should not have to back it with guarantees. This shows a misunderstanding of the position. The guarantees are the direct demonstration, in financial terms, that the two Governments are prepared to stand behind the project. No project of this magnitude and character could be successful without the backing of the two Governments concerned. Any sensible investor will know this. And if the Governments are, in fact, to stand behind the project, it is in the general interest for them to provide formal guarantees, because this will allow cheaper financing and, in the end, greater returns to the public purse ensuring that the Governments get the lion's share of the profits.