§ Mr. Colvinasked the Secretary of State for Trade and Industry if the 3 per cent. premium charged on the guaranteed loans to small businesses has covered the cost of defaults on those loans; and if he will make a statement.
§ Mr. TrippierAt the end of January 1984 guarantee demands had been met of £42.2 million, and receipts in respect of premiums and recoveries were £10.6 million. This gives a net cost of £31.6 million to date, but this 213W figure does not reflect the fact that surviving businesses will generate premium income throughout the remaining period of the loans. The cost of the defaults is, of course, one of the factors I am considering in my current review.