HC Deb 23 March 1998 vol 309 cc25-6W
Mr. Donaldson

To ask the Secretary of State for Northern Ireland what assessment she has made of the implications for Short's share of the Bombardier Aerospace Group's research, development and design work of the commitments made by Bombardier at the time of privatisation. [35534]

Mr. Ingram

Bombardier has fulfilled the undertakings provided in relation to Shorts when it acquired the business in October 1989. From the reports I have received from both Bombardier and Shorts on the future plans for the business I have no reason to doubt their assurances that Shorts will remain an integrated design and manufacturing operation within Bombardier Aerospace.

Mr. Donaldson

To ask the Secretary of State for Northern Ireland if she will provide a breakdown of the amount of public funds given to Shorts since privatisation, including a breakdown of the privatisation package into (i) projected losses, (ii) launch aid, (iii) additional capital expenditure and (iv) training. [35537]

Mr. Ingram

The cost to Government of the financial terms of the sale of Shorts to Bombardier in October 1989 was £780 million less £30 million paid by Bombardier for the share capital of Shorts. The £780 million included £665 million for the restructuring of the company's balance sheet which included projected losses on existing contracts and £115 million for future Government support including £79 million grant towards capital expenditure, £18 million for training and other costs and £18 million towards the non-recurring costs of developing components for the Regional Jet. No launch aid was provided at this stage. The grant aid has been fully paid and the conditions applied to it have been met.

In addition to the privatisation package, Shorts has received the following grant assistance from the Department of Economic Development's agencies since October 1989:

Agencies £ million
Industrial Development Board 13.93
Industrial Research & Technology Unit 14.57
Training and Employment Agency 5.79

The company also received £17.72 million launch aid from the Department of Trade and Industry (£15 million) and Industrial Development Board (£2.72 million) towards the cost of the development of the Learjet 45 aircraft.