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Trade Facilities Act (London Tube Railways)

Volume 155: debated on Monday 12 June 1922

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60.

asked the Financial Secretary to the Treasury whether he can now state the terms of the loan granted to the underground railways of London under the Trade Facilities Act for the purpose of extending and improving some of the tube railways of London; whether any conditions have been made for a sinking fund in order to repay the capital; and whether any condition has been made as to the number of men to be employed and as to the date when the work shall be commenced?

There is no question of a capital advance by His Majesty's Government to the London Underground Railway Company. The Treasury has agreed to guarantee principle and interest of issues of debentures to be made by the London Electric Railway Company and the City and South London Railway Company up to a combined total of £6,000,000. The terms of the issues will be subject to the approval of the Treasury and are not yet finally determined. No condition has been imposed as to a sinking fund, but the company in the Bill now before the House are seeking power to create a fund for redemption purposes. No specific conditions have been made as to the number of men to be employed, but it has been stipulated that work shall be started as soon as possible, and, in fact, the inauguration of the Edgware extension takes place, I understand, to-day.

Will the same facilities he given to local authorities who are owners of their own municipal tramways?

I do not think that arises. This is a special case. If the hon. Member will put a question down, I will answer it.