§ Mr. Ridleyasked the Secretary of State for Industry if he will set out the conditions whereby the £40 million development aid paid to International Computers Ltd. between 1972 and 1976 is to be paid back to the Exchequer; and if, and when, he expects replayment to start.
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§ Mr. Les HuckfieldThe agreement under which the aid was given provides for the company to make repayments to the Government if, in any of the seven company years ending 30 September 1984, the pre-tax profit, after certain adjustments exceeds 7½ per cent. of turnover. In the first of the seven years ending 30 September 1978 the pre-tax profit did not reach this level and so no repayment was due.
With a formula of this kind, it is not possible to forecast accurately what repayment will be made under the agreement in any given year, but the company's financial plans and their implications for repayment are kept under review by my Department.