§ Mr. HoyleTo ask the Secretary of State for Trade and Industry how much Government funding has been given to overseas companies in the last 10 years for the establishment of factories in the United Kingdom that have closed in the first three years of operation or never opened. [66026]
§ Mr. Wills[holding answer 18 January 1999]: Comprehensive information on total Government funding given to foreign owned companies and the number of associated factory closures is not held centrally. To provide such information would involve disproportionate cost.
However, for Regional Selective Assistance (RSA), the DTI's main investment grant scheme, available data show that, in the last 10 years, over 300 foreign owned companies accepted offers of RSA for new start-up projects in GB. Grant payments to these companies amounted to £227 million. Within three years of accepting offers, two of these companies were subject to legal process and a further six companies were invoiced for full recovery of grant paid because the RSA projects were abandoned. A total of £1.5 million grant was involved of which £150k has been recovered to date. The recoveries do not include possible action to recover grant paid in the case of Siemens.