§ Sir P. Robertsasked the Minister of Power whether the change in the scale of the Colvilles strip mill project has increased the cost; and what effect this will have on the amount to be advanced under the loan agreement with the company.
§ Mr. WoodI told the House on 23rd Mach that the capacity of this strip mill is to be about 500,000 tons of sheet a year instead of about 230,000 tons under the original plan. The extended scheme is estimated to cost more than £60 million, of which the extension accounts for about £16 million. The company now proposes to raise about £15 million by a rights issue. In these new circumstances the company has agreed that the amount in the loan agreement will be reduced from £50 million to £45 million. The remainder of the proceeds of the new issue will be absorbed by the extension of the strip mill scheme. I have agreed that this remainder and the capital expenditure to which it is to be allocated will be disregarded in assessing the cash position of the company in connection with the review of the balance of the loan. This review, as I said in the debate on 23rd March, will take place in the first quarter of 1962.