§ Mr. Kilroy-Silkasked the Secretary of State for Industry if he has received an application for financial assistance from the Kirkby Manufacturing and Engineering Company Ltd.; and if he will make a statement.
Mr. ValleyThe Workers' Co-operative at Kirkby, formally known as the Kirkby Manufacturing and Engineering Co., recently sought assistance of £860,000 from my Department under302W Section 7 of the Industry Act 1972 to help finance its future activity. This would be in addition to the existing grant of £3,900,000 made available to the co-operative in January 1975. The members of the co-operative believe that with this assistance they can succeed, and their representatives have assured me that they will not have to apply for any further Government assistance in future. I have consulted the Industrial Development Advisory Board, which did not recommend support since the proposal does not comply with the criteria for selective financial assistance laid before the House in January 1976. However, in view of the present severe and increasing unemployment in Kirkby, I have decided to offer financial support of £860,000 by way of a grant. The Government's financial commitment to this project is limited to this grant. This assistance will give the co-operative the maximum opportunity to make a success of the venture and thus to secure 775 jobs.