§ Mr. Howard Grittenasked the Financial Secretary to the Treasury whether he is aware that when the managing director 1827W of the Special Areas Re-Construction Association, Limited, was approached by representatives of the Hartlepool Corporation regarding the provision of assistance to enable a new company to be formed to take over the business of the Warren Cement Works, Limited, Hartlepool, to avoid the works being closed and so increasing the number of unemployed in Hartlepool by another 100 men, he discouraged the proposal, holding out no hope of an application to his directors for financial assistance being granted, because the company had not been able to work at a profit for some years although it was in a sound financial position and had not lost money, and it was the definite opinion of the directors that with new capital and plant there was every prospect of profits being made; why the association, established with the express object of assisting companies which could not raise the necessary capital through the ordinary financial channels, is not prepared to assist undertakings which are not certain of success from the commencement; and, as this policy is unlikely to be of any assistance to the Special Areas, what steps he proposes to give better assistance?
§ Captain CrookshankI am informed that the Managing Director of the Special Areas Reconstruction Association met representatives of the Hartlepool Corporation on the 21st April last and discussed with them the possibility of keeping in operation the Warren Cement Works, Limited, so as to prevent the unemployment that would result in the event of the works being permanently closed. I understand that the Managing Director indicated that, if alternative arrangements could not be made, the Association would be prepared to consider any reasonable application from the Company for financial assistance. The Company, have, however, now arranged to close their works. I understand that every effort is being made by the firm which is acquiring their assets and by the Ministry of Labour to find alternative work for the employés.
In reply to the second part of the question, I am satisfied that the object for which the Association was established is being adequately fulfilled and that the Association has proved of real assistance in the expansion of industry in the Special Areas.