Construction Industry Training Board (Hansard, 14 January 1971)

§ Mr. R. Carr

The Board has been unable to borrow from commercial sources the additional borrowing of £8 million which I authorised in October 129W and has asked for assistance from the Government. In order to enable the Board to meet its current commitments to pay grants, I have decided to make a loan of up to £8 million under Section 5 of the Industrial Training Act, 1964, on terms and conditions which the Board has accepted.

The loan will be repayable with interest by six-monthly instalments beginning on 30th September, 1971, and ending on 31st March, 1976, though I have asked the Board to repay it sooner if possible. The rate of interest will be that charged by the Public Works Loans Board for loans outside the quota arrangements at the time of issue.

The conditions of the loan are: that undertakings already given about measures to avoid deficits on future grant schemes, effective financial planning and control, and administrative economies shall continue to apply; that the Board shall repay its total indebtedness (both the loan and commercial borrowing) by 31st March, 1976, debt repayment being a first charge on levy income; that the Board is required to satisfy me that the calculation of the sum available for distribution as grants each year safeguards the programme of debt repayment, and to consult me before terminating the employment of Cooper Brothers to assist on questions of financial control; and that the Board is expected in framing its future grant schemes to provide for the amount of grant any individual firm may receive to be subject to a limit.

I have also indicated to the Board that I shall be prepared to approve its proposals for future levy and grant schemes only if I am satisfied that they fully safeguard the Board's financial position; and I have asked the Board to give serious consideration to the scope for exempting small firms for its next levy.