HC Deb 27 January 1977 vol 924 cc742-3W
Mr. George Rodgers

asked the Secretary of State for Industry if a decision has yet been made on the proposed inquiry into the closure of the Courtaulds factory at Skelmersdale.

Mr. Alan Williams

It has not so far been possible to find a basis for an inquiry acceptable to both sides.

Mr. George Rodgers

asked the Secretary of State for Industry if he will list in the Official Report the loans that have been made available from public funds for the Courtaulds development at Skelmersdale, the terms on which such loans were made and the amount which is still outstanding.

Mr. Alan Williams

With the consent of Courtaulds I am able to tell my hon. Friend that the company received a loan totalling £1½ million in respect of the Skelmersdale weaving factory. The loan which was taken up in 1970 carried an interest rate of 8 per cent. chargeable with effect from three years after the date on which the loan was received. The loan and accrued interest have been repaid in full.

Mr. George Rodgers

asked the Secretary of State for Industry if he will publish in the Official Report the amount of money that has been provided from public funds in the form of grants to the Courtaulds development at Skelmersdale; and if he will show how much of this sum has been recovered in view of the closure of the factory concerned.

Mr. Alan Williams

Since 1968 Courtaulds has received from public funds grants totalling £3.8 million in respect of the Skelmersdale weaving project. The amount to be repaid as a result of the closure is still to be determined in the light of the eventual use of the assets. These figures should be seen in the context of the total amount of cash absorbed by the project in fixed assets, working capital and cash losses amounting to £19.8 million of which about £13.5 million was provided by Courtaulds without taking into account reclaimed grants or a repayable loan of £1,500,000.

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