HC Deb 09 May 1996 vol 277 cc216-7W
Mr. Jamieson

To ask the President of the Board of Trade, pursuant to his answer of 29 February,Official Report, column 676, what checks were made at the time of the granting of regional development grant in 1989 to South West Leisure Products Ltd. (a) into the background of the directors and (b) as to whether the company had been placed in the hands of the administrative receivers; and if he will make a statement [24712]

Mr. Oppenheim

[holding answer 16 April 1996]: The only payments of regional development grant to the company were made in 1985 and then eight months before the appointment of administrative receivers in October 1988. Firms meeting the criteria for regional development grants would receive payment of grant automatically on the basis of providing assets or jobs in a development area relating to qualifying activities which would result in new or increased productivity, or would effect a change in the product or process. It was unusual for checks to be made into the background of directors. In accordance with normal practice under the scheme the case file was destroyed—six years after the last action was taken.

Mr. Jamieson

To ask the President of the Board of Trade, pursuant to his answer of 29 April,Official Report, column 363, what was the value of the money paid on demand from the creditors of South West Leisure Products Ltd. under the provision of the two loans guaranteed by his Department [28297]

Mr. Oppenheim

[holding answer 7 May 1996]: The loans guaranteed under the small firms loan guarantee scheme resulted in payments of £27,179.63 and £14,278.82 being made to the lender in November 1988.