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Channel Tunnel

Volume 884: debated on Friday 24 January 1975

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asked the Secretary of State for the Environment what estimate he has made of the total amount of compensation to be paid following cancellation of the Channel Tunnel; under what contractual terms compensation arises; whether contractual terms have been the same in all cases; and if he will list the companies with claims, showing the estimated breakdown of compensation entitlement in each case.

The cost of abandonment is provisionally estimated at about £40 million to be shared between the two Governments. This is the cost of discharging Government-guaranteed loans and acquiring the shares of the British and French Channel Tunnel Companies in accordance with the contractual provisions of paragraph 6.2.9 (i) (a) of Agreement No. 2 (Cmnd. 5486). Contracts with third parties are a matter for the companies.