Historic Royal Palaces (Borrowing Facility)

Lord Vaizey of Didcot Excerpts

Thursday 12th September 2013 Written Statements

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)]

The departmental minute laid today is in respect of an extension to the period whereby Government act as guarantor on behalf of historic royal palaces (HRP) for a borrowing facility of up to £4 million to meet short-term cash flow requirements.

The renewed guarantee will be available until 30 September 2016 and HRP will only enter into borrowing facilities at such times and within such monetary limits as the Department shall agree.

The guarantee provides a safeguard protecting HRP’s business from a sudden and serious decline in economic conditions affecting HRP’s admissions income until the savings from their planned rationalisation measures could come through, and would only be used in extreme circumstances. The guarantee has been in place since 2002 and it has never yet been called upon.

Historic Royal Palaces is a charity established by royal charter. By virtue of a contract entered into on 1 April 1998, it carries out the functions of the Secretary of State for Culture, Media and Sport under section 21 of the Crown Lands Act 1851 of managing the unoccupied royal palaces.

I am arranging for the document to be placed in the Libraries of both Houses.