§ Mr. Viggersasked the Secretary of State for Industry on what date his Department was asked to assist the Aston Martin car firm.
§ Mr. MeacherAston Martin Lagonda Limited first approached the former Department of Trade and Industry for financial assistance in January 1974. Before financial assistance may be made available under Section 8 of the Industry Act 1972 the Secretary of State must be satisfied that it cannot otherwise be provided. Aston Martin Lagonda Limited was accordingly advised to approach commercial sources. On 10th July the com210W pany informed the Department that it had been unsuccessful in trying to obtain finance from sources outside Government and applied for assistance under the Industry Act. The Government decided that financial assistance would not be made available.
A fresh application based on a scheme of financial reconstruction was submitted to the Department in a letter dated 23rd September. No decision was possible before the then pending election. An offer of assistance subject to certain conditions was formally made to the company on 29th October.
§ Mr. Viggersasked the Secretary of State for Industry on what date his Department advised Aston Martin whether or not it would assist that company; and what conditions were specified.
§ Mr. MeacherOn 13th September 1974 the company was informed that its application made on 10th July had been unsuccessful. The company submitted a new application involving a scheme of financial reconstruction on 23rd September and on 29th October 1974 the company was advised that the Government would be willing in principle to provide financial assistance and to participate in this scheme, provided that certain conditions were met. These conditions were based on proposals made by Aston Martin, its parent company, its work force and another relating to financial and other support, certification and distribution arrangements in the United States and security for any Government loan.
§ Mr. Viggersasked the Secretary of State for Industry on what grounds he decided not to follow the recommendation of the Industrial Development Advisory Board in the case of Aston Martin.
§ Mr. MeacherOn 10th July the company applied for financial assistance; the Industrial Development Advisory Board subsequently recommended against providing financial support and the Government decided not to make assistance available. The company submitted a fresh proposal on 23rd September; the Industrial Development Advisory Board saw no reason to change its earlier view but the 211W Government considered that this later application, involving financial reconstruction, a measure of worker participation and the prospect of financial overseas sales, merited approval provided that certain conditions were met.
§ Mr. Viggersasked the Secretary of State for Industry on what grounds it was decided to require Aston Martin to change its United States distributor as a precondition of Government aid.
§ Mr. MeacherIn its proposals to the Government the Aston Martin Lagonda company itself proposed that its United States distribution should be undertaken by the Royston Corporation, a subsidiary of the Alco Standard Corporation. The condition attached to the Government assistance simply embodied the company's own proposal.
§ Mr. Viggersasked the Secretary of State for Industry whether his Department was in touch with Aston Martin throughout the period of its recent financial difficulties.
§ Mr. MeacherYes, on numerous occasions.
§ Mr. Viggersasked the Secretary of State for Industry when was the last contact between his Department and Aston Martin prior to the announcement of the latter's intention to seek liquidation.
§ Mr. MeacherOn 18th December 1974.