§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement detailing what Government grant-aid was given in repect of the producer-dyed acrylic fibre spinning machine which Monsanto introduced to the plant in Coleraine now owned by Montefibre and explaining what had happened to this machine.
§ Dr. BoysonI am unable to provide details of grant assistance paid to Monsanto plc prior to October 1980 as this information is confidential under the terms of the agreement entered into with the company. Such assistance has, however, now passed outside the control period during which grant may be reclaimed in the event of disposal. The possibility of reclaiming grant related to subsequent refurbishment of this machinery is being examined. It is understood that the machinery in question is now located at a Montefibre plant in Spain.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement detailing what Government grant-aid was given in respect of the Seydel converter installed by Monsanto in the Coleraine plant now owned by Montefibre and explaining what has happened to this machine.
§ Dr. BoysonI am unable to provide the detailed information requested as agreements to provide selective financial assistance were subject to a confidentiality condition prior to October 1980. The Seydel converter was, however, grant-aided in 1972 and remained in use at Coleraine for well beyond the mandatory control period of three years. It is understood that this machinery is now located in Spain.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement detailing how much grant aid was given in respect of plant installed by Monsanto in the Coleraine plant now owned by Montefibre and which is now packed for shipment to India.
§ Dr. BoysonI am unable to provide details of grants paid to Monsanto plc prior to October 1980 as this information is confidential under the terms of the agreement entered into with the company. However, the last grant was paid in 1978 and the assets aided are therefore outside the period of three years in which the Government have an interest in their disposal.
§ Mr. Humeasked the Secretary of State for Northern Ireland what regard was paid to the changes in oil prices in the Department of Economic Development's assessment of the profitability of the Montefibre plant.
§ Dr. BoysonThe Industrial Development Board has not undertaken a separate assessment of the profitability594W of the Montefibre plant. It is satisfied that the management of the company has taken into account all the relevant factors in arriving at its decision.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement on the development at Montefibre, Coleraine, of a new optic fibre; and where Montefibre now intends to produce this product.
§ Dr. BoysonIn 1984 the company undertook at Coleraine a research and development programme to develop a new optic fibre. As this product was being developed specifically for the United Kingdom market the company has informed the industrial Development Board that it has no plans to produce it elsewhere within the group.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement on the development of the new non-recrimped staple at Montefibre, Coleraine; and where Montefibre now intends to produce this.
§ Dr. BoysonThe development of the non-recrimped staple represented the introduction to Coleraine of the most modern processing technology that was available within the group. Montefibre had successfully developped this in its other European plants and logically extended the benefits of this work to Coleraine during 1984–85 after adapting the process to the particular equipment in Coleraine.
As the company first developed this processing technology in Italy and Spain, it will continue to use it in these plants.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement indicating what grant-aid was given in respect of the development of the three new products at Montefibre, Coleraine.
§ Dr. BoysonThe company had applied to the Industrial Development Board for support on the development of plastic reinforced fibre; on the development of a new optic fibre and on the development of non-recrimped staple. However, the programme for the development of these new products at Coleraine was not complete in respect of any of the products at the time the closure was announced.
The following table gives the financial details:
Expenditure approved by the group £ Grant support approved by IDB £ Grants paid by IDB £ Plastic reinforced fibre 912,700 350,405 240,906 New optic fibre 691,980 278,970 59,399 Non-recrimped staple 120,000 41,740 20,490 As the company has announced the closure of the Coleraine plant it is liable to repay grants which were received for research and development projects.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining what figures are available to indicate the return Montefibre earned on its investment in the Coleraine plant.
§ Dr. BoysonThe audited results for the 30 months ended 31 December 1985 show an accumulated loss of £92,000 was sustained by Montefibre on its Coleraine operations. For the 12-month period to 31 December 1985 the audited results show a loss of £858,000.