HC Deb 10 November 1975 vol 899 c402W
Mr. Cant

asked the Secretary of State for Industry whether, in view of the fact that the £26.7 million injected into Alfred Herbert has been used up in the purchase of ordinary shares and the repayment of debts and borrowings, he will now publish an estimate of any further amount that will be required to complete rationalisation and reorganisation, and provide finance for new investment.

Mr. Gregor Mackenzie

The financial assistance to be provided to Alfred Herbert, by subscription for £26,179,765 share capital, awaits approval by the ordinary shareholders of the proposed scheme of arrangement, sanction of the scheme by the court and the enactment of the Industry Bill. I expect that the £25 million included within this sum as new long-term finance will enable the company to embark on the necessary rationalisation, reorganisation and new investment. The need for any further finance will thereafter be a matter for consideration by the company in consultation with the National Enterprise Board.