§ 57. Mr. MullinTo ask the Secretary of State for Trade and Industry when he last met the chairman of British Shipbuilders; and what was discussed.
§ Mr. Douglas HoggI met the Chairman of British Shipbuilders on 16 October1989 to discuss the disposal of 259W the assets of North East Shipbuilders Ltd. We also both gave evidence at the Trade and Industry Select Committee hearing on British Shipbuilders on 18 October.
§ Mr. ClayTo ask the Secretary of State for Trade and Industry what is the most recent information he has as to the level of outstanding British Shipbuilders' commercial borrowing.
§ Mr. Douglas Hogg[holding answer 26 October 1989]: Government funding of British Shipbuilders is designed to keep the Corporation's commercial borrowing requirements to a minimum. As at 13 October, actual commercial loans amounted to £3 million. On a year on year basis, however, total net aid provided over the course of the year is subject to the terms of the European Community's sixth directive on aid to shipbuilding. Limitations on Government funding under this Directive necessitated British Shipbuilders borrowing some £90 million in the market in December 1988. By December 1989, it is estimated that this level of borrowing liability will have fallen to about £65 million against the sixth directive's parameters.