§ Mr. Kenneth Clarkeasked the Secretary of State for Industry what payments of interest on Government loans were made by the Meriden Co-operative before March 1977; how much interest payment has been deferred under the arrangements announced in March 1977; when the Government expect the Co-operative to resume the payment of interest and interest deferred; and whether he will make a statement.
§ Mr. Cryer,pursuant to his reply [Official Report, Vol. 950, c. 770–1] gave the following information:
The £4.2 million Government loan to the Meriden Co-operative was interest-free for the first year. Thereafter, interest was payable at 10 per cent. per annum in half-yearly instalments falling due on 30th June and 31st December of each year. The Co-operative paid the first instalment of £128,589 due on 30th June 1976. The five instalments due between 31st December 1976 and 31st December 1978, both dates inclusive, and totalling £1,047,594, were deferred under the arrangements announced on 7th February 1977 and debated in the House on 22nd March 1977. Interest payments are planned to resume on 30th June 1979 and deferred interest will also fall due for 149W payment on that date unless an alternative programme for payment has been negotiated with the Co-operative. Any proposals made by the Co-operative for an alternative payment programme will be considered by me and the House will be told if such a programme is agreed with it.