§ 11. Sir P. Robertsasked the Minister of Power if his review of the amount of the loan to Colvilles Ltd. has been completed; and if he will make a statement.
§ Mr. WoodYes, Sir. Since I last reported on this matter to the House a year ago, the liquid position of the company has been adversely affected by changes in the state of trade and increases in costs outside its own control. The company has made its own arrangements to provide additional finance, but I am satisfied that the company needs the assurance that it can draw on the Government loan up to a maximum of £50 million, in accordance with the original agreement. I have therefore agreed that the maximum of the loan should be restored to the original figure of £50 million.
§ Mr. LiptonWill the right hon. Gentleman also inform the House what is the rate of interest at the moment and Whether it is proposed to alter the rate of interest paid by Colvilles for the money that it is getting from the Government?
§ Mr. WoodThere has been no suggestion that the rate of interest should be altered. The rate of interest is all provided for in the original agreement. All I am saying is that the original agreement should be carried out to the full.
§ Mr. LawsonWill the right hon. Gentleman also bear in mind that an additional burden has been imposed upon Colvilles to the tune of about £900,000 a year by the new differential coal price policy that has been imposed upon Scotland?
§ Mr. WoodThe hon. Gentleman has pointed this out to me in the past, and I have agreed that there is an extra burden placed on the company in this way. I have also pointed out to him that not only the steel industry's future is important but also the viability of the coal industry in the future.