Marine and Coastal Access Bill [HL]

The noble Lord has raised an interesting point. Clause 33 states: "““A loan under this section may be made subject to such conditions as may be determined … The conditions must include provision with respect to … repayment of the loan””." Although we might debate the principle, there are sufficient safeguards for the Secretary of State in lending money to the MMO. I do not think that there is anything exceptional in the clause. It is a facility that is on the books and that could be made available. I accept that it is unusual for departments to make loans to NDPBs from their own budgets or indeed from the National Loans Fund, as funding is usually provided through grant in aid. I have just inquired into my department’s experience in this area and I have not found any example of such loans being made. I understand that loans to Defra-sponsored public corporations, such as British Waterways and the Covent Garden Market Authority, which have a slightly different status, have been agreed at Treasury standard interest rates, primarily to fund profit-generating capital expenditure projects. That is very different from the circumstances in which the MMO finds itself and is likely to find itself in the future. On the rates, I can assure the noble Lord that colleagues in the Treasury determine the rates at which any loans may be made to bodies such as NDPBs and indeed any loan is subject to Treasury approval. I should have thought that was a pretty strong guarantee against the Secretary of State making a loan in circumstances which might cause the noble Lord concern. The clause gives flexibility for arrangements to reflect an economic situation that might arise at the time and the exact requirement for which the loan is required. We do not want to put the body at a disadvantage compared with other bodies in having access to loans on that basis, although I accept that it is difficult at the moment to foresee those circumstances. It is simply a standard provision in the terms and conditions for setting up a non-departmental public body.