§ Mr. Duffyasked the Secretary of State for Northern Ireland what Government assistance is being given to the firm of Welrex Limited towards the continuance of its operations at Newry and Bangor.
§ Mr. OrmeThe company recently approached the Government stating that for financial reasons it was unable to continue in business and that closure, which would make over 360 people redundant, was imminent. As the majority of the workforce comes from the high unemployment area of Newry, I considered it important to buy time to see whether anything could be done to maintain that employment.
Accordingly the Government guaranteed, on an extra-statutory basis, additional bank facilities of £60,000 to the company. At the same time a firm of accountants was employed to ascertain the financial position and it confirmed a serious situation with no prospects of viability. The company's bank appointed a receiver on Thursday 1st May and the Government now propose to underwrite, again on an extra-statutory basis, the losses incurred during the first three months of the receivership and will ensure an orderly run-down if attempts to find a purchaser fail. These losses are not expected to exceed £115,000.