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Scottish Assembly Executive

Volume 922: debated on Tuesday 14 December 1976

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asked the Lord President of the Council if, in his preparation of the devolution proposals, he considered the advisability of the Scottish Assembly Executive making approaches to the European Investment Bank and similar institutions; and what conclusions he reached.

Under Article 21 of the Statute of the European Investment Bank (EIB) its loans and guarantees must be approved by the member State in whose territory the project which the loan or guarantee is intended to assist will be carried out. Approval of loans or guarantees under this Article is a matter for Her Majesty's Government for projects anywhere in the United Kingdom.The Scottish Executive will not itself have power to borrow from the EIB, but bodies operating in devolved fields who cannot borrow without the Executive's approval may wish to do so. In reaching decisions on loans for which Scottish Executive approval is required the Government will take account of the Executive's views; and there is nothing to prevent the Executive discussing such loans direct with the EIB.