§ Mr. Skeetasked the Secretary of State for Industry if he will make a statement on the security of State loans granted to Norton Villiers Triumph; and whether any further aid to the company is being contemplated.
§ Mr. VarleyThe Government have made no loans directly to Norton Villiers Triumph Ltd. Assistance given in 1973 took the form of an investment of £4.872 million in preference shares in the company. In the event of a winding-up those shares have priority over all other shares in the company.
My Department has guaranteed up to £8 million of loans by banks to this company for the purpose of financing exports of motor cycles. The security to be given for the guaranteed loans is currently under discussion with the company. ECGD has also offered guarantees of up to £6 million to Norton Villiers Triumph Ltd. for the purpose of financing exports of motor cycles produced by the Meriden Co-operative. My predecessor commissioned consultants to examine the situation in the British motor cycle industry and its prospects. When their report has been received I will consider what the 452W Government's policy towards the industry should be.