Clause 28 - Government guarantees for NDA borrowing
Energy Bill [Lords]
3:15 pm
Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)
The arrangements set out in the clause are the normal ones for such circumstances. The Bill sets out an overall framework of parliamentary oversight and public accountability at what is, I think, an appropriate level considering the NDA's strategy.
The annual planning and the annual reporting process give Parliament the opportunity to consider the big picture of the organisation.
I have again considered whether there is a case for strengthening the arrangements for parliamentary oversight, and I do not think that there is a strong case for doing so. As the hon. Gentleman said, amendment No. 101 would require the Secretary of State to be satisfied that the NDA can meet any commitments entered into before guaranteeing NDA borrowing. That is unnecessary, because the NDA is entirely dependent on the Secretary of State for its funding. Any income that the NDA generates must be returned to the Secretary of State.
The Secretary of State will need to fund the NDA to meet its obligations and carry out its functions, including meeting any debt repayments. The ability of the NDA to meet its commitments will flow from the funding provided by the Government. Any guarantee provided by the Secretary of State about NDA borrowing would simply recognise that.
The question of whether the NDA should be allowed to borrow money from third parties is covered in clause 26. The NDA requires the consent of the Secretary of State and the Treasury before it can do so. At that point, the Secretary of State should decide whether the borrowing is appropriate, whether the Government should fund it and whether a guarantee, if necessary, should be given.