HC Deb 25 June 1976 vol 913 cc680-1W
Mr. Grylls

asked the Secretary of State for Industry what is the annual rate of interest payable by International Computers Limited on the £40 million for general research and development support, payable up to September 1976, and the £3.5 million for various cost shared development contracts, which has been committed by the Government; whether this interest has yet been paid; and how much of the capital sum has yet been repaid to his Department out of sales and profits.

Mr. Les Huckfield

Recovery of the £40 million support payments is calculated on a discounted cash flow rate of return of 10 per cent. The company is to pay my Department any profit before tax in excess of 7½ per cent. of turnover earned in the seven company years commencing on 1st October 1977, up to a maximum of 25 per cent. of the profit in each year. The repayment period may be shorter if full recovery proves possible before 30th September 1984. Recovery of the £3.5 million for development contracts is also based on a discounted cash flow rate of return of 10 per cent. This recovery takes the form of a levy on sales of the products. Most of this will accrue in the future; the amount recovered so far is £0.6 million.