HC Deb 07 December 1978 vol 959 cc1604-6
8. Mr. Cryer

asked the Secretary of State for Northern Ireland what is the expected date of the production of the De Lorean car.

10. Mr. Michael McNair-Wilson

asked the Secretary of State for Northern Ireland what proposals he has introduced for scrutinising progress on the De Lorean car project and expenditure in it.

The Minister of State, Northern Ireland Office (Mr. J. D. Concannon)

I understand that the De Lorean Motor Company expects to begin car production early in 1980.

The formal agreement with De Lorean, Limited requires the Department of Commerce and the Northern Ireland Development Agency to be supplied with quarterly management accounts within two months of the end of each quarter and with detailed audited annual accounts within four months of the end of the financial year. In addition, the Department has the right to request any other financial information which it may require.

The Northern Ireland Development Agency is also entitled to designate two of the company's directors for as long as it holds shares in the company, or while there is any outstanding loan or guarantee of indebtedness issued by the Department or the agency to the company or its subsidiaries or affiliates. As a further measure, the company has covenanted to supply both the Department and the agency with copies of all detailed business plans and reports submitted to the board of directors.

Mr. Cryer

Does my right hon. Friend accept that I entirely understand and. applaud the aim of providing more jobs in West Belfast? Does he also accept that. the £55 million expenditure causes a certain amount of anxiety? Does he agree that the only real way in which there can be adequate scrutiny of that amount of money is by full public ownership which does not depend upon such a private enterprise venture? Is the Secretary of State satisfied that the marketing and technical expertise is adequate for when De Lorean enters into a contract with Lotus cars? Is he satisfied that the safeguards will ensure that the De Lorean venture does not become like that of other wonder cars which have been somewhat oversold—such as the Doble, Tucker and Brickhill cars?

Mr. Concannon

I am satisfied with the project and the effort that has been put into it. The project will provide 2,000 jobs in one of the most depressed areas. I should have thought that the House would be satisfied that we are doing something about that situation.

The outright grants to the firm comprise £28'5 million of total Government involvement. Investment of £17'5 million is in equity capital by the Northern Ireland Development Agency and it has been made on a normal commercial basis. A loan of £6'7 million has been made by the Department of Commerce and will be repaid with interest when the company is able to do so. Private investment in the De Lorean project so far amounts to about £13 million, which is not minimal.

Mr. McNair-Wilson

The Minister of State seemed to imply that directors could be appointed. Are they to be appointed by the Northern Ireland Development Agency? May we have an assurance that they will be more than a channel of communication between the Department of Commerce and the company and that they will have powers, including the power to veto expenditure, if they are worried about the way in which the project is developing?

Mr. Concannon

We have the power to appoint two directors. They have already attended their first meeting. One of then) is a Northern Ireland Development Agency accountant and the other is a senior executive of NIDA. I am satisfied that they will be looking after the interests of NIDA.

Mr. Fitt

Does the Minister accept that there are thousands of unemployed people in West Belfast, of all religions and all political persuasions, who are looking forward anxiously to the beginning of production in this car factory? This is an area which many people believe has been deliberately isolated over many years. Does he agree that there seems to be a tendency in certain quarters to knock this project? I am not talking of my hon. Friend the Member for Keighley (Mr. Cryer). Will the Minister bear in mind that those who knock this project have for years requested the Government to invest finance which runs into millions, to keep the Belfast shipyard afloat?

Mr. Concannon

I am surprised about the knocking, but I am pleased that it has not come from the Opposition Front Bench. In one debate the Opposition thanked us for getting on with the job. I make no apology for taking account of the imperative need to promote jobs in that area. It is one of the worst unemployment black spots, not only in Northern Ireland but in the whole United Kingdom.

Mr. Speaker

Order. Questions and answers are beginning to get longer again.