HC Deb 25 February 1987 vol 111 cc265-6
12. Mr. Maxton

asked the Secretary of State for Trade and Industry how much money has been received by the Caterpillar Company Ltd. in Government support since it was established.

Mr. Giles Shaw

It is not customary to provide details of the Department's grants to individual companies beyond the limited information published in "British Business on Regional Development Grants" and certain support schemes under the Industrial Development Act 1982 and its predecessor. This shows that, since 1975, individual direct payments to the Caterpillar Company of sums of over £25,000 of regional development grant have totalled £4.7 million. Offers of selective financial assistance to Caterpillar UK under sections 7 and 8 of the Act, in respect of which some payment has been made, amount to £3 million for investment at Glasgow and Leicester.

Mr. Maxton

In view of the figures and the humiliating defeat for the Secretary of State for Scotland in this matter, what action does the Minister intend to take to try to get some of that money back from Caterpillar? How will he spend that money to ensure that the tragic loss of jobs in Scotland is at least alleviated in some way?

Mr. Shaw

I understand the hon. Gentleman's fair supplementary question. If the company proceeds with its closure, the recovery of earlier grant in respect of the Glasgow plant is a matter for which my right hon. and learned Friend the Secretary of State for Scotland will be responsible. There are rules regarding repayments, as I said in response to an earlier question. They will indeed be followed.

Mr. Allan Stewart

The House will be reassured by what my hon. Friend has said. In the light of the serious economic consequences for the area if the regrettable closure decision is confirmed, will his Department, with the Scottish Office, sympathetically and urgently review any applications for selective financial assistance for the area that have been turned down in the past few months?

Mr. Shaw

My hon. Friend will be aware that my hon. Friend the Under-Secretary of State for Scotland is looking urgently at the marketability of the Caterpillar site for the continuation of manufacturing and employment. Obviously, if opportunities attract regional grant I have no doubt that they will be most urgently considered.

Mr. Maclennan

Why were the Government so completely out of touch with the corporate thinking of a company which is so heavily assisted by the Government? Will the Minister comment on the disturbing statements that were made yesterday by the chairman of the company about the future of the Leicestershire plant?

Mr. Shaw

I do not understand the first part of the hon. Gentleman's question. Had he been present earlier when the matter was fully discussed, he may have gained the information that he seeks. If I have misunderstood him, I know that he will write a pertinent letter to me on the issue.

I can confirm that information has been sought and received from the chairman of Caterpillar, which confirms that the commitment to the Leicestershire plant is total. The remarks reported in yesterday's edition of the Financial Times about the supposed devaluation of the dollar were made off-the-cuff in reply to a hypothetical question in Las Vegas. It does not appear to me that currency speculation in Las Vegas is always a true record of what takes place.