HC Deb 11 February 1981 vol 998 cc333-4W
Mr. Michael Brown

asked the Secretary of State for Northern Ireland how large is the work force now employed by De Lorean Cars Ltd.; and if it has plans to expand it in the immediate future.

Mr. Adam Butler

The company currently employs 884 people and expects to continue recruiting on a progressive basis during 1981.

Mr. Michael Brown

asked the Secretary of State for Northern Ireland if the 30 pre-production cars that have been tested by De Lorean Cars Ltd. proved completely satisfactory.

Mr. Adam Butler

This is a matter for the company, but I understand that the pre-production cars fulfilled all the purposes for which they were built.

Mr. Michael Brown

asked the Secretary of State for Northern Ireland at what date De Lorean Cars Ltd. undertook to put the first vehicles produced in Northern Ireland on sale; on what date they will actually be put on sale, according to existing plans; how many orders have now been received by the company; and who are its principal potential customers.

Mr. Adam Butler

My hon. Friend will be aware that the company planned to launch the car before the end of 1980 and that the production of cars was delayed by slippage in the programme, as earlier reported to the House. I understand that market launch is now expected in April 1981.

The company have also informed me that franchised dealers have indicated that they will purchase 32,000 cars during the two years following the commencement of sales. The dealers are at present all located in the United States of America.

Mr. Michael Brown

asked the Secretary of State for Northern Ireland under what conditions the additional sum of £14 million was loaned to De Lorean Cars Ltd. by the Government last year; if he has any plans to alter the basis of the agreements under which public money has been loaned to the company; if the company has requested a further loan from the Government; and, if so, what sum of money is involved.

Mr. Adam Butler

The loan will be repaid within a period of 10 years commencing 1 November 1982, from which date interest at the rate of 13 ⅜ per cent. per annum will be charged. It is secured by a fixed and floating charge on the assets of De Lorean Motor Cars Ltd. I have no plans to alter the basis of existing agreements with the company.

On the question of the company's request for further assistance, I refer the hon. Gentleman to my reply to the hon. Member for Keighley (Mr. Cryer) on 26 January 1981.—[Vol. 977, c. 319.]

The matter is still under consideration.

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