§ Mr. McBride
asked the Secretary of State for Trade and Industry if, in connection with loans made under the provisions of the Industry Act to industrial projects in Wales, he will state the funding arrangements, that is, the rate per centum of interest charge together with the period of years, at the end of which all capital and interest charges must be repaid.
§ Mr. Anthony Grant
The concessionary rate of interest on loans under Section 7 for projects creating additional employment at present is 1½ per cent. In certain cases an interest-free period is also allowed. Interest on loans for modernisation projects not providing additional employment is at broadly commercial rates.
Loans are medium term. The period over which a particular loan has to be repaid is determined in the light of the circumstances of the project being assisted.