HC Deb 05 February 1975 vol 885 cc520-1W
Mr. Stanley

asked the Secretary of State for Industry why he has not made his Department a prior or pari passu creditor in the event of the Kirkby Manufacturing and Engineering Company Limited going into liquidation.

Mr. Heffer

The Government considered that a grant on the terms which were decided would provide the co-operative with the best prospects of success.

Mr. Stanley

asked the Secretary of State for Industry whether he has required that all full-time workers at the Kirkby Manufacturing and Engineering Company Limited should be able to purchase shares in the company.

Mr. Heffer

Questions of the ownership and transfer of shares will be covered by the constitution of the co-operative now being drawn up.

Mr. Stanley

asked the Secretary of State for Industry whether a legal constraint on the transfer of the shares in the Kirkby Manufacturing and Engineering Company Limited held by Mr. J. Spriggs and Mr. R. Jenkins is currently in being.

Mr. Heffer

No.

Mr. Stanley

asked the Secretary of State for Industry whether he will publish the constitution of the workers' co-operative at Kirkby when it is finalised.

Mr. Heffer

I expect that the co-operative will make available details of its constitution when it is finalised.

Mr. Stanley

asked the Secretary of State for Industry what price was paid by Mr. J. Spriggs and Mr. R. Jenkins for the shares they own in the Kirkby Manufacturing and Engineering Company Ltd.; and what is the estimated value of each share today.

Mr. Heffer

Two shares were issued to Mr. Spriggs and Mr. Jenkins at par. The shares will not be traded, and it is not, therefore, possible to speak in terms of a market value.

Mr. Tim Renton

asked the Secretary of State for Industry what financial criteria have been agreed to by the work force at Kirkby Manufacturing and Engineering Limited in accepting loans from Her Majesty's Government.

Mr. Heffer

No loans are being made to Kirkby Manufacturing and Engineering Ltd. Assistance is taking the form of a grant of up to £3.9 million, on terms which are described in the statement laid before the House on 20th December 1974.

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