HC Deb 04 July 1989 vol 156 cc113-4W
Mr. Meacher

To ask the Chancellor of the Duchy of Lancaster if he will list all financial assistance, including that from the European Community, approved by his Department for Palatine Graphic Arts Company Limited, Liverpool, over the past five years, giving the name and amount of the grant or assistance, the date of approval and payment, the purpose of each and the terms and conditions imposed; and if he will take steps to ensure those terms have been and are being met in full.

Mr. Atkins

[holding answer 3 July 1989]: During the past five years my Department has made the following grants to Palatine Graphic Arts Co. Ltd., Liverpool:

Regional Development Grant II
Purpose of grant Amount approved Date approved Amount paid Date paid
£ £
Provision of Chemotinex Etching bath, sanding machine moulding press and Chromalin processor and laminator. The creation of eight jobs formed part of this project1 33,000 15 December 1986 21,897 17 March 1987
Provision of exposure unit 1,688 13 July 1987 1,688 5 August 1987
Provision of stop and repeat machine 3,255 14 July 1987 3,255 5 August 1987
Provision of copper, etching bath2 6,356 23 March 1988 6,471 23 September 1988
Provision of scitex electronic scanning and page composition system 75,000 15 September 1988 75,000 24 February 1989
119,299 108,311
1 The offer was based on the proposed creation of 11 jobs at £3,000 each, but in the event, only eight new jobs were created. As the total capital grant for the project, which included £8,250 payable to a leasing company, was the greater of the two, the grant was based on capital expenditure. However, the creation of the eight jobs formed part of the project.
2 The discrepancy is due to the fact that the application was based on estimated costs and prices had increased at the time the claim was submitted.

Regional development grant II is made under standard conditions, including the obligation to notify my Department if jobs or assets are disposed of within the condition period and to repay such grant as may be required if the conditions are breached. Projects are subject to inspection.

Regional Selective Assistance
£
30 October 1984
Amount Offered 100,000
24 March 1986
Amount Paid 6,461

The purpose of this grant was to assist with the purchase of new equipment which would provide time savings in artwork and make-up. The difference between the cost of the equipment and the amount of regional selective assistance paid was made up by regional development grant and the balance of RSA was not claimed.

Total grants paid were £212, 989.

Regional Development Grant I
Purpose of grant—towards the provision of approved plant and machinery and building works
Date paid Amount of grant £
6 November 1984 2,967
5 December 1984 7,697
11 January 1985 8,461
5 July 1985 227
19 July 1985 359
25 October 1985 3,572
15 November 1985 8,572
26 January 1986 22,165
13 May 1986 33,254
87,229

Regional development grant I was not dependent on the creation of jobs, but disposal of grant-aided assets within the conditions period must be notified and could result in the repayment of grant.

My Department has not approved the payment of any grants involving EC funding and I am not aware of any EC funds being provided to the company from any other sources.

The relevant projects at this company have been inspected, most recently in August 1988 and again in June 1989, and I am satisfied that the terms and conditions under which grant assistance has been given are at present being met.

I understand that six of the eight jobs created under the grant approved on 15 December 1986 are at present vacant but that efforts to refill them are in hand. Under the terms and conditions under which grant is paid, the company is expected to refill such posts within two months—or longer at the Department's discretion—and a proportion of the grant can be reclaimed if this is not done.