§ Mr. Kinnockasked the Secretary of State for Northern Ireland what steps he has taken to ensure continuance of employment in the computer firm of International Engineering Limited in Northern Ireland.
§ Mr. OrmeThis company was established in 1972 in an attempt to preserve the jobs of some 1,700 people formerly employed by International Computers Limited. The Northern Ireland Department of Commerce took an 85 per cent. shareholding in the new company, the remaining shares being held by the Decision Data Computer Corporation of Philadelphia, USA.
The attempt to maintain this employment has so far involved the Government in the expenditure of some £6 million in the purchase of the equity, in the payment of various forms of grant and 130W also in the provision of a £1½ million guarantee to the company's bank.
The company came to the Government in November 1974 saying that it needed a further injection of cash to keep going. The Government provided an additional guarantee to the bank—now standing at £2,350,000—and called for an independent examination of the company's prospects. This has made it clear that a fundamental reappraisal of its future is needed and that there is no hope of maintaining employment at its present level of 1,350.
My right hon. Friend has, therefore, authorised the payment of an extra-statutory grant of £1,500,000 to cover losses in a four-month period ending 31st August next, to give the company time to prepare a plan for its future and for this plan to be considered by the Government and the trade unions. In the meantime, the company has announced redundancies of about 700, which are to take effect immediately.
I have discussed the future of this company on two occasions with management, trade union officials and representatives of the shop stewards and I am satisfied that all concerned will co-operate in this attempt to find a viable future for this important, high technology industry.