HC Deb 21 October 1975 vol 898 cc144-5W
Mr. Trotter

asked the Secretary of State for Industry what is the extent of the financial assistance being given by the Government to Marathon Shipbuilding by way of loans and otherwise; and to what extent the terms of the assistance have been revised.

Mr. Kaufman

As announced to the House on 22nd May 1972, Marathon Shipbuilding Co. (UK) Ltd. was offered, and accepted, a loan under Section 4 of the Local Employment Act 1972, amounting to £6 million. This loan was interest free for three years and then at 6 per cent. In addition, the company could apply for statutory regional and shipbuilding grants for which it became eligible.

Subsequently, in December 1974, under Section 7 of the Industry Act 1972, £2 million of the loan element of this package was converted into non-cumulative preference shares and the capital and interest repayments on the remainder of the loan—i.e., £4 million—were deferred for one year.