HC Deb 28 February 1975 vol 887 cc273-4W
Mr. Michael McNair-Wilson

asked the Secretary of State for Industry if he will now make a further statement about his discussions with the directors of Ferranti Limited relating to Government financial assistance for the company; how many meetings have taken place between his officials and those of the company since 1st January 1975; when the last of these meetings was held; what amount of financial assistance was discussed; how large a shareholding in the company was to be acquired; and when he expects the negotiations to be finalised.

Mr. Benn

The meetings which officials have had with directors of Ferranti Limited were to prepare for the discussions I shall shortly be having with representatives of the employees and the management. Discussion of Government financial assistance was only exploratory and was based on information which has since had to be revised. Since 1st January 1975 there have been numerous meetings between my officials and the company, the latest of which was on 21st February. Proposals will be formulated as soon as practicable, but I must first be able to take account of views expressed at the forthcoming tripartite talks and the results of revised studies of the financial prospects of the company.

Mr. Michael McNair-Wilson

asked the Secretary of State for Industry how much money has so far been provided to Ferranti Limited to assist the company with its day-to-day expenditure.

Mr. Benn

A guarantee has been given under Section 7 of the Industry Act 1972 to Ferranti Limited's principal banker of additional overdraft facilities, at present, to a maximum of £6 million.

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