§ Mr. J. H. Osbornasked the Secretary of State for Economic Affairs what cuts in expenditure on nationalisation, rationalisation, or other participation in industrial activity, will now be made by the Industrial Reorganisation Corporation as a result of the cuts in expenditure announced by the Government.
§ Mr. DellThe purpose of the Industrial Reorganisation Corporation is to promote structural change which will improve the efficiency and profitability of British industry. Its operations can thus make an important contribution to the object of the recent cuts in Government expenditure, which is to shift substantial resources into exports, import replacement and productive investment, and no reduction is planned in the expenditure that the Corporation may consider necessary to carry out its functions.
§ Mr. J. H. Osbornasked the Secretary of State for Economic Affairs how many reports and investigations have now been carried out by the Industrial Reorganisation Corporation at the request of the Government; if he will list these; and what action has now been taken in each case.
§ Mr. DellThe Government invited the Industrial Reorganisation Corporation to examine the structure of the telecommunications industry and its relationship with the Post Office. They also asked the Industrial Reorganisation Corporation to undertake a full evaluation of the proposals received from a number of aluminium companies on the basis of the special electricity arrangements for establishing aluminium smelting facilities in Britain. Both these reports have been received and are being examined.
The Government also sought and received helpful advice from the Industrial Reorganisation Corporation in respect of the Cunard Steamship Company's request for an additional loan towards the cost of the Queen Elizabeth II.
§ Mr. J. H. Osbornasked the Secretary of State for Economic Affairs how much money has now been committed on industrial activities or mergers by the Industrial Reorganisation Corporation since 279W it was set up; if he will list each investment, and in those cases where this takes the form of a loan give the date when this was made, date of first interest payment and rate of interest in case, indicating the extent to which these varied from current interest rates, respectively.
§ Mr. DellSince it was established the Industrial Reorganisation Corporation has committed just under £18.8 million. Nearly £3.2 million is committed to Rootes Motors Ltd., in the context of the arrangements announced to the House by my right hon. Friend the Minister of Technology on the 17th January, 1967. Another £15 million has been lent to the enterprise resulting from the merger of English Electric and Elliott Automation, on terms which provide for an interest rate of 8 per cent. a year to be charged after the first two years of the loan and which also give the Corporation certain conversion rights into Ordinary Shares of English Electric. The other £600,000 has been made available to facilitate the merger of the nucleonic instrument interests of E.M.I., Elliott Automation and Nuclear Enterprises (GB) Ltd. The Corporation expects to receive a commercial rate of return in all three cases.
The foregoing information about these individual transactions has already been made public and it is for the Corporation to decide, in consultation with the companies concerned, whether it wishes to release further information about them. The Corporation's annual report will contain some of the other information sought by the hon. Member.