31 Related party transactions

In the ordinary course of business, sales and purchases of goods take place between subsidiaries and joint venture companies priced on an ‘arm’s length’ basis. Sales of product by subsidiaries to joint ventures in 2007 totalled £70 million (2006 – £69 million). The amount due at the year end in respect of such sales was £8 million (2006 – £8 million) (see note 15). Purchases by subsidiaries from joint ventures in 2007 totalled £10 million 2006 – £8 million). The amount due at the year end in respect of such purchases was £2 million (2006 – £2 million) (see note 16).

At 31 December 2007 a Group subsidiary had £nil receivable (2006 – £7 million receivable) by a joint venture in respect of a loan, bearing interest at EURIBOR plus 1% (see note 13). In addition, a Group subsidiary had £2 million receivable (2006 – £nil) from a joint venture in respect of a short term financing facility bearing interest at LIBOR plus 1% (see note 15).