§ Mr. Maddenasked the Secretary of State for Industry what guarantees have been given by Lonrho Limited, following ing the advance of a £5 million interest-free loan to assist in the acquisition of Brentford Nylons, in regard to its future intentions, particularly with respect to the maintenance of employment.
Mr. Alan WilliamsThe only guarantee of employment is a viable business, but Lonrho have stated that it regards its commitment to Brentford Nylons as long-term, and that success of the enterprise would lead ultimately to additional jobs being created. The loan is not interest-free. After an initial interest-free period ending in December 1977, the loan bears interest at 10 per cent. of three years, and 12 per cent. for the remaining two years. I understand that the workers involved welcome the outcome.
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§ Mr. Maddenasked the Secretary of State for Industry what conditions were laid down by his Department before agreement was reached on the advance of a £5 million interest-free loan to Lonrho Limited to assist in purchase of Brentford Nylons, with particular regard to management supervision, monitoring arrangements and notice arrangements in the event of future disposal of assets; and what arrangements exist for repayment of the loan.
Mr. Alan WilliamsThe progress of the enterprise will be closely monitored by my Department. Under the terms of the offer my right hon. Friend's consent is required for any reduction in capacity through disposal of assets. The loan is repayable over four years in equal instalments from 1st January 1979.
§ Mr. Arthur Lewisasked the Secretary of State for Industry whether he will make it a condition of financial assistance to the Lonrho organisation to take over Brentford Nylons that no funds should be used for expenses for the directors of this organisation.
Mr. Alan WilliamsThe funds will be wholly used towards the purchase of the assets of Brentford Nylons from the receiver.