§ 90. Mr. Hooleyasked the First Secretary of State and Secretary of State for Economic Affairs why the Industrial Reorganisation Corporation is providing a loan of £15 million, free of interest for two years, to Messrs. English Electric and Elliott Automation, which represents a subsidy of approximately £1,500,000 from public funds to private industry.
§ Mr. Harold LeverThe Board of the Corporation decides the terms on which it assists financially with desirable schemes of rationalisation. However, my hon. Friend has failed to consider the full terms on which it is participating in this case. An interest rate of 8 per cent. a year will be charged after the first two years of the loan and the Corporation also has certain conversion rights into Ordinary Shares of English Electric which are intended further to increase its return.
§ Mr. Bishopasked the First Secretary of State and Secretary of State for Economic Affairs what financial aid has been given to industry by the Industrial Reorganisation Corporation since its formation; for what purposes; and what amounts and which companies and projects have been involved.
§ Mr. Harold LeverI would refer my hon. Friend to the reply which I gave on 10th May to a similar Question from 25W my hon. Friend the Member for Bedford (Mr. Brian Parkyn).—[Vol. 746, c. 251–2.]