HC Deb 17 December 1979 vol 976 cc45-6W
Mr. Alton

asked the Secretary of State for Industry if he is satisfied that the£708,000 regional development grant paid to Meccano Ltd. between October 1974 and November 1979 has been used in accordance with the appropriate regulations; and what changes have occurred in the company's viability since the last certificate was issued in May 1979 and the present.

Mr. David Mitchell

Meccano has received both regional development grant and selective financial assistance. Regional development grants are repayable in whole or part if within four years the premises cease to be used wholly or mainly for qualifying activities or the relevant asset ceases to be used on the premises. If manufacturing permanently ceases at the Meccano factory, the Department of Industry will reclaim any grant which becomes repayable.

Viability is considered before an offer of selective financial assistance is made, and projects are closely monitored. Companies are not required to provide certificates of viability before instalments of selective financial assistance are paid. But in May 1979, before the first instalment of such assistance was paid, confirmation was received from Airfix Industries Ltd. That the project in respect of which assistance had been offered and which was to be undertaken by its subsidiary Meccano would go ahead.

Mr. Alton asked

the Secretary of State for Industry if he will ask the Co-Development Agency to investigate help which might be given to Meccano Ltd., Liverpool.

Mr. David Mitchell

It is not for the Government to take an initiative in this matter; it is for the work force to decide whether or not it wishes to approach the Agency for advice.

Mr. Alton

asked the Secretary of State for Industry whether he will make available to the trades unions representing Meccano workers, Liverpool, details of the firm's financial situation under the terms of section 30 of the Industry Act.

Mr. David Mitchell

No. Not only does the case not meet the Act's criteria, but these and their related powers are inappropriate and inapplicable to it.