§ Mr. Gryllsasked the Secretary of State for Industry whether, under his agreement of 5th January 1976 with Chrysler UK Limited and Chrysler Corporation and the supplemental deed of 24th November 1977, the Government will make payments of 50 per cent. of the losses of Chrysler UK Limited, including any losses arising from manufacturing, assembling and marketing vehicles in the Republic of Ireland.
Mr. Alan Williams,pursuant to his reply [Official Report, 17th July 1978; Vol. 954, c. 94], gave the following information:
44WUnder the terms of the supplemental deed of 24th November 1977, the post-tax profits or losses of the Irish subsidiaries of Chrysler UK are taken into account in assessing the total profits or losses of Chrysler UK on which the Government's contribution to losses or share of profits are calculated. During the period of the agreement to date, the Irish subsidiaries have made profits and, therefore, their contribution to Chrysler's overall financial results has served to reduce the figures on which the Government contribution is based. If however during the current year or 1979, after which the profit or loss sharing arrangement terminates, losses are made by the Irish subsidiaries which contribute to the sum due from the Government under the terms of the agreement—and no such losses are in fact anticipated—the supplemental deed provides for recovery by the Government of one-half—the other half going to Chrysler Corporation—of the amount by which those losses are applied in accordance with the Irish Corporation Tax Act 1976 to offset against profits made in subsequent years. This right will remain until the amount by which the Government's contribution to Chrysler UK's losses in 1978 and 1979 was increased by the losses of the Irish subsidiaries has been recovered.