§ Mr. Leeasked the Secretary of State for Industry (1) what assurances he secured from the board of Lonrho Group that no other source of money was available for the finance of its acquisition of Brentford Nylons before sanctioning the recent £5 million loan;
(2) what account he took, when allocating the sum of £5 million to the Lonrho Group, of the saving to the group from its not having to secure an equivalent capital loan on the market.
Mr. Alan WilliamsThe purpose of the loan is to save the 1,800 jobs in special 371W development areas, and David Whitehead would not have proceeded with the acquisition of the Brentford Nylons assets without this incentive. The Brentford Nylons workers and their trades union representatives were fully consulted and have welcomed the Government's aid and the Lonrho takeover.
§ Mr. Leeasked the Secretary of State for Industry (1) if he will appoint Government directors to the board of the Lonrho Group in order to monitor the affairs of that group whilst the interest-free loan of £5 million is being spent and until it is repaid;
(2) if he will seek to appoint Government directors to the board of Brentford Nylons following upon its acquisition by the Lonrho Group with £5 million loan capital provided by the Government.
Mr. Alan WilliamsUnder the terms of the offer to David Whitehead my right hon. Friend has the right to appoint a Government director to Brentford Nylons 1976. The loan will be closely monitored by my Department.