§ Colonel Lancasterasked the Minister of Power whether he will make a statement about the new strip mill at Newport for Messrs. Richard Thomas and Baldwins, Limited; and whether he is satisfied that the loan of £70 million is, in the light of the latest estimates, still adequate to finance the company's developments.
§ Mr. WoodThe construction of the strip mill is still in its early stages but good progress is being made. I referred in the debate on 27th June, to the extension and acceleration of the original plans, with a consequent increase in the cost of the Newport installations. The extension of the project will also increase its requirements for working capital and its acceleration will involve additional finance in the short term to make good the reduction in the contribution which the company can make from its current revenues during the construction period. Substantial finance will also be required for the company's developments elsewhere. In so far as these additional requirements have to be met out of public funds, the company will look to the Iron and Steel Holding and Realisation Agency which is its usual source of finance for short-term requirements and normal developments.