§ 34. Mr. Biggs-Davisonasked the Secretary of State for Industry, Trade and Regional Development for what reasons Her Majesty's Government gave financial support to the North British Locomotive Company Limited, now in liquidation; what assessment was made of its prospects; and whether he will make a statement.
§ Mr. HeathThe loan was made in March, 1959, on the recommendation of the Development Areas Treasury Advisory Committee, an independent body, who satisfied themselves after detailed investigations on the future prospects of the company. The purpose of the loan was to maintain employment in Glasgow. These loans are intended to help companies to finance their own projects to provide new jobs in development districts or prevent existing jobs being lost. The loan agreements normally give the Government the right to nominate a director, but the Government have no powers to intervene in management.