HC Deb 08 July 1994 vol 246 cc359-60W
Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland what plans he now has to review the decision to provide inward investment aid to encourage the Hualon Corporation to develop new textile facilities in Northern Ireland; and if he will make a statement.

Mr. Tim Smith

The Hualon project has been the subject of a detailed appraisal and scrutiny process not only by Her Majesty's Government but by the European Commission. I have no plans to review our decision to offer assistance in respect of the project.

Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland what recent representations he has received concerning the proposals to provide inward investment aid to encourage the Hualon Corporation to develop new textile facilities in Northern Ireland; and if he will make a statement.

Mr. Tim Smith

I and my ministerial colleagues have received four recent representations concerning the Hualon project, including two from the textile industry.

Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland what consultations his Department had with trade associations and individual companies in the textile and clothing sector prior to the decision to provide inward investment aid to encourage the Hualon Corporation to develop new textile facilities in Northern Ireland; and if he will make a statement.

Mr. Tim Smith

The Department responsible did not consult with either any individual company or trade association before reaching its decision. It did, however, seek the advice of leading independent internationally recognised consultants in the textile and clothing sector.

Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland what consideration he gave to the implications for existing textile producers prior to taking the decision to provide inward investment aid to encourage the Hualon Corporation to develop new textile facilities in Northern Ireland; and if he will make a statement.

Mr. Tim Smith

In deciding to offer selective financial assistance to this, or any other project, the Industrial Development Board is required to consider potential job displacement not only in Northern Ireland but in Great Britain. In this case the conclusion was that Hualon's products would compete principally with imported fabrics and therefore not cause any significant job displacement. This was also the conclusion of the European Commission which examined the project from a European perspective.

Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland what consideration he gave to the recent conviction in Taiwan of senior officials of the company prior to deciding to provide inward investment aid to encourage the Hualon Corporation to develop new textile facilities in Northern Ireland; and if he will make a statement.

Mr. Tim Smith

I have been fully aware for some time of the allegations against certain shareholders in Hualon Corporation in Taiwan but concluded that the allegations against certain individuals, which are currently unproven should not preclude IDB from offering assistance to a publicly quoted corporation with a long and successful commercial track record.