HC Deb 18 January 1977 vol 924 cc183-8W
Mr. Grylls

asked the Secretary of State for Industry whether there is any limit on the number of loan guarantees, joint ventures, or other form of financial commitment which the NEB may make, of between £10 million and £25 million for each project, by giving him notice of his intention; and, if there is such a limit, what it is for the financial years 1976–77, 1977–78, 1978–79 and 1979–80.

Mr. Les Huckfield

No.

Mr. Grylls

asked the Secretary of State for Industry how many specific commitments have been undertaken by the Government

what amounts were given by his Department to Yorkshire as a whole and West Yorkshire, respectively, during the last three years; and how these totals compare with the number and amounts of grants given to Scotland and Wales.

Mr. Alan Williams,

pursuant to his reply [Official Report, 17th January 1977; Vol. 924, c. 57], gave the following information:

I regret that information in the form requested is not available. Estimates of expenditure on regional preferential expenditure for which this Department is responsible are:

to give guarantees to creditors of subsidiary or associate companies of the NEB.

Mr. Les Huckfield

One.

Mr. Grylls

asked the Secretary of State for Industry whether there is any limit on the number of loans, guarantees, joint ventures, or other forms of financial commitment which the NEB may make, up to a maximum of £10 million for each project, without his approval or the approval of Parliament; and, if there is such a limit, what it is for the financial years 1976–77, 1977–78, 1978–79 and 1979–80.

Mr. Les Huckfield

No, subject to statutory limits and public expenditure restraints.

Mr. Grylls

asked the Secretary of State for Industry what he considers to be an adequate return on capital employed by the NEB, in accordance with paragraph 16 of the Schedule of NEB Guidelines.

Mr. Les Huckfield

None has yet been determined.

Mr. Grylls

asked the Secretary of State for Industry when he expects to determine the different financial duties for the different assets and activities of the NEB in accordance with the Industry Act 1975; if he has determined these, whether or not the Treasury has approved; and if he will publish details in the Official Report.

Mr. Les Huckfield

My right hon. Friend will determine these duties, with the approval of the Treasury and after consultation with the Board, when the necessary information is available. He will then consider what details might be published.

Mr. Grylls

asked the Secretary of State for Industry what compensation he has made to the NEB for costs incurred in providing services to Government, or in undertaking functions at his direction, under Section 3 of the Industry Act 1975.

Mr. Les Huckfield

None.

Mr. Grylls

asked the Secretary of State for Industry when he expects to receive the NEB's Corporate Plan in accordance with paragraph 1 of the Annex of the NEB Guidelines setting out its strategy for the years ahead; and it he will undertake to publish the plan.

Mr. Les Huckfield

In due course. There is no requirement in the Industry Act for publication of the plan.

Mr. Grylls

asked the Secretary of State for Industry if he is satisfied that the NEB is discharging effectively its employment responsibilities in areas of high unemployment; and what action the NEB is taking through regional offices in the North East and North West of England.

Mr. Les Huckfield

Yes. NEB staff in the North-East and North-West regional offices are actively engaged in seeking opportunities for NEB investment.

Mr. Grylls

asked the Secretary of State for Industry if he has received any requests from the NEB, as required under section 2(4) of the Industry Act, for his approval for the NEB to dispose of any of its securities, including voting shares.

Mr. Les Huckfield

Issues of commercial confidentiality militate against any statement about any exercise of this power until the disposal is public knowledge.

Mr. Grylls

asked the Secretary of State for Industry whether the Industrial Development Advisory Board has given any advice on applications to date which have subsequently become the subject of Section 3 direction to the NEB.

Mr. Les Huckfield

My right hon. Friend has not yet issued a direction under Section 3 of the Industry Act 1975, but the Board has given advice on the loan of £30 million to British Leyland Ltd. which it is proposed to direct the NEB to make.

Mr. Grylls

asked the Secretary of State for Industry what ceiling has been set by his Department on the amount of Government funds that the NEB will receive by way of advances from the National Loans Fund or public dividend capital during the financial years 1976–77 and 1977–78.

Mr. Les Huckfield

Loans to the NEB from the National Loans Fund or issues of public dividend capital will be limited in aggregate to £225 million in 1976–77 and £275 million in 1977–78 exclusive of sums furnished under Section 3 of the Industry Act 1975.

Mr. Grylls

asked the Secretary of State for Industry what ways he plans to allow Parliament to monitor the annual corporate plan and the investment and financing programme of the NEB.

Mr. Les Huckfield

I am required by the Industry Act 1975 to submit the NEB's annual report to Parliament.

Mr. Grylls

asked the Secretary of State for Industry if he will publish in the Official Report a list of the shareholdings held by the National Enterprise Board at 14th January 1977, showing the number and description of the shares, the percentage of total equity held by the NEB, the cost of the shareholding and, where appropriate, the market value of the shareholding at close of business on 14th January 1977.

Mr. Les Huckfield

The information is as follows:

Company Type of share Number held by NEB Percentage held of nominal value of total equity Cost£ Stock Exchange closing price pre share on 14th January 1977
Agemaspark Ltd. £ ordinary 3,700 30.0 per cent. 100,000 Not traded
£1 redeemable preference 50,000 50,000 Not traded
Anglo- Venezuelan Railway Corporation £1 ordinary 3,500 35.0 per cent. 3,500 Not traded
Brown Boveri Kent Ltd 25p ordinary 7,658,938 17.6 per cent. 1,880,160 23p
Cambridge Instrument Co. Ltd. 10p ordinary voting 4,261,757 44.5 per cent. 1,770,339 Not traded
1p ordinary voting 87,684,255 Not traded
1p ordinary non-voting 50,000,000 500,000 Not traded
British Leyland Ltd 50p ordinary 246,490,683 95.1 per cent. 246,490,683 26p
Data Recording Instrument Co.Ltd. £1 ordinary 2,400,000 53.9 per cent. 2,400,000 Not traded
Dunford & Elliott Ltd 25p ordinary 271,351 2.6 per cent. 122,111 51p
Ferranti Ltd 50p ordinary voting 4,000,000 62.5 6,000,000 Not traded
50p ordinary non- voting 2,666,666 2,666,666 Not traded
Herbert Ltd 25p ordinary 43,632,948 100.0 per cent. 26,196,114 Not traded
International Computers (Holdings) Ltd. £1 ordinary 8,148,750 24.4 per cent. 12,082,588 151p
Reed & Smith Holdings Ltd. 50p ordinary 2,400,000 29.8 per cent. 792,000 24p
Rolls Royce (1971) Ltd £1 ordinary 175,000,000 100.0 per cent. 175,000,000 Not traded
Sinclair Radionics Ltd £1 ordinary 75,000 42.9 per cent. 450,000 Not traded
£1 redeemable preference 200,000 200,000 Not traded
Twinlock Ltd 10p ordinary 7,123,000 33.3 per cent. 997,000 Not traded