HC Deb 23 June 1960 vol 625 cc663-5
20 and 25. Mr. Steele

asked the President of the Board of Trade (1) whether he is aware of the offer of the Calico Printers' Association to purchase the shares of the United Turkey Red Company, Alexandria, Dunbartonshire; and, in view of the recent loan of £400,000 under the Development Areas Treasury Advisory Committee to the United Turkey Red Company, what steps he is prepared to take to ensure the object of the Loan, namely, to provide employment in an area of high unemployment, will be achieved;

(2) if his approval was sought by the Board of the United Turkey Red Company, Alexandria, Dunbartonshire, before they issued a statement to their shareholders advising them to accept an offer by the Calico Printers' Association for the purchase of their shares, in view of the recent loan by the Treasury of £400,000 under Development Areas Treasury Advisory Committee to the United Turkey Red Company.

Mr. Maudling

The loan agreement made between Her Majesty's Government and the United Turkey Red Company does not require the approval of the Board to an offer for the purchase of the company's shares. It does not and could not in practice contain conditions forcing the Company to continue to provide employment at its works. But I am aware of the need for employment in the Dumbarton area, and I hope that, whether or not the offer by the Calico Printers' Association for the shares is accepted, employment will continue to be provided at these works.

Mr. Steele

Will the President agree that the only purpose of this loan from the Government to the United Turkey Red Company was to provide work for the people of Alexandria? If the takeover bid takes place, may I have an assurance from the right hon. Gentleman that he will consult the Calico Printers' Association to ensure that work will be continued in that factory?

Regarding Question No. 25, is the President aware that the preference shareholders had to sign away their rights to the heritable assets of the company to the Government before the loan was granted, which means that the Government are now the first preference shareholders of this company? Does not this mean that they have some rights in the matter? Will the President look at the legal issues involved to ensure that they have some right to interfere?

Mr. Maudling

I will certainly look into the legal point. I do not think the effect of the agreement is as suggested by the hon. Gentleman. We have been in touch with the Calico Printers' Association and pointed out that the Government very much hope that nothing which is done will create greater difficulty in the employment situation at Dunbartonshire. But we could not possibly make it a condition of a D.A.T.A.C. loan that a company receiving the loan should not go out of business. That is not practicable. But we ensure that if a company goes out of business we get our money back. That is the protection we have for public funds.