HC Deb 20 January 1976 vol 903 cc447-9W
Mr. Rooker

asked the Secretary of State for Industry, what further assistance has been made available to Norton Villiers Triumph Ltd.

Mr. Varley

The Government are taking part in a scheme for the orderly rundown of activities at the Birmingham factory of Norton Villiers Triumph and for the continuation of a limited range of manufacturing activities at an adjacent factory.

Two new subsidiaries of NVT have been created, the first, NVT Engineering Ltd., to continue with certain engineering sub-contract work previously carried out at the Birmingham factory and to make motor cycle parts. Except for the completion of existing motor cycle work in progress at the Birmingham factory it will not make complete motor cycles. The second, NVT Motor Cycles Ltd. will inter alia have a marketing role.

Assistance has been provided in the form of a loan of £275,000 to NVT Engineering Ltd., at commercial rates of interest and to be repaid in equal tranches on 31st December of each of the years 1978, 1979 and 1980. Barclays Bank Ltd. is also supporting the scheme by providing an overdraft facility to NVT Engineering Ltd. equal to the Government loan.

To enable the existing motor cycle work in progress to be completed and disposed of the Government have also guaranteed bank loans to NVT Motor Cycles Ltd. of up to £500,000.

The loan and guarantee are secured by first fixed and floating charges on assets of the two new subsidiary companies, held in the case of the charge on NVT Engineering Ltd. pari passu with Barclays Bank.

This assistance is being provided under Section 8 of the Industry Act 1972 within the authority of the Resolution approved by the House of 5th March 1975. The maximum cover available to NVT under the £8 million export credit guarantee facility previously given under the terms of that Resolution has been reduced accordingly.

The Government are taking part in this scheme because the new subsidiaries will provide backing to enable stocks of motor cycles held overseas and exported under the Government export credit facility to be disposed of in an orderly fashion so as to reduce the Government's contingent liability under that facility. No further exports will be made under that facility.

NVT Engineering Ltd. will employ approximately 300.