De Lorean Cars (Hansard, 9 April 1981)

§ 7. Mr. Adley
asked the Secretary of State for Northern Ireland how many cars have been sold, at the latest convenient date, by De Lorean cars; and what is the total of public funds provided as at that date.

§ 14. Mr. Cryer
asked the Secretary of State for Northern Ireland if he will make a statement on the progress of the De Lorean Car Co. Ltd.

§ Mr. Adam Butler
Employment at the company currently stands at about 1,300 and further recruitment is expected to raise this figure to 1,400 by mid-1981. I understand that no cars have been sold to date; 15 cars have already been despatched to America, and the first bulk shipment is now expected to take place at the end of next week. At 31 March 1981, the total amount of selective industrial assistance paid by the Department of 1104 Commerce to De Lorean Motor Cars Ltd. was £47.7 million including £20.7 million of repayable loans and, in addition, the Northern Ireland Development Agency has subscribed £17.8 million for redeemable participating preference shares in the company.

§ Mr. Adley
As my hon. Friend was a spectator at the demise of MG, which could have been saved by the taxpayer with an investment of £20 million, will he say when the taxpayer will see a return on his investment in De Lorean?

§ Mr. Bruce-Gardyne
Do not be greedy.

§ Mr. Butler
The taxpayer will start to see a return on his money very shortly after the first shipment leaves Belfast docks.

§ Mr. Cryer
We welcome the jobs that the company has provided but will the hon. Gentleman explain the protection that the taxpayer has for this £70 million-plus investment? When negotiating the recent loan and guarantee, why did not he use his power to provide some shareholding to reverse the 90 votes per share that currently are vested in the De Lorean company, which is incorporated in America, as opposed to the one vote per share for the 17 million shares of the Northern Ireland Development Agency? Is not it true that the car is not owned by the taxpayer? Should not the taxpayer have greater protection?

§ Mr. Butler
The hon. Member knows that it was his Government who drew up the arrangements for the deal, including leaving the Northern Ireland Development Agency with the minority of voting shares. It was not appropriate, on the occasion of renegotiating a loan, to change that position.

§ Mr. Bruce-Gardyne
Will my hon. Friend tell the House whether the plant is still turning out 20 to 25 cars a day, as he reported the last time he came before the House? Is he aware that some of the suppliers to De Lorean appear to be encountering some difficulty in getting their bills paid?

§ Mr. Butler
The commercial relationship between De Lorean and its suppliers is not a matter for me. I am informed that this week the daily production of first-quality cars will be between 15 and 20.

§ Mr. Pendry
Does not the Minister accept that with the first consignment of cars already at Belfast docks and with a work force of 1,300, as he stated, De Lorean has already justified the involvement of successive Governments in its enterprise? Far from apologising, will not he join me in congratulating that company on its success and by doing so perhaps silence some of the critics in the House?

§ Mr. Butler
The company's success in reaching that position after two-and-a-half years is generally recognised by those who understand something about motor car production. The daily production of cars of 15 to 20 is about a quarter of what the company aims to achieve when the car is in maximum production. Therefore, I believe that the company has not done a bad job in the circumstances. I am happy to congratulate the management on the position that it has reached, but, equally, I look forward to the time when the plant is profitable and when the taxpayers' investment has been paid back.