§ Mr. Cryerasked the Secretary of State for Northern Ireland if he will state the form of the private financial contribution to De Lorean cars; and how much of 584W this contribution is based on money already paid for research and development of the two De Lorean prototypes.
§ Mr. ConcannonPrivate investment to date in the De Lorean project amounts to approximately £13 million. Of this total, some £5 million was raised by sales of shares and expended on basic research, including development of the first two prototypes, and other expenses before August 1978, when the decision to locate the company in Northern Ireland was taken. Since then, sales of limited partnership interests in a research partnership formed to complete the company's research and development programme have raised about a further £8 million.
§ Mr. Cryerasked the Secretary of State for Northern Ireland if he will state the number of United States dealers supporting the De Lorean car project with financial assistance and distributorships.
§ Mr. ConcannonI understand that, to date, the De Lorean Motor Company has appointed 206 dealers in the USA who have undertaken to purchase 26,350 vehicles within the first 24 months following initial production of the DMC-12 car.
§ Mr. Cryerasked the Secretary of State for Northern Ireland if he will make a detailed statement on the qualifications and experience of the persons who assessed the two prototype De Lorean cars.
§ Mr. ConcannonThe method of evaluation adopted over applications for special industrial assistance depends on a number of factors, including the standing, qualifications, and experience of the promoters and the available evidence on the likely demand for the products. After examining these factors thoroughly, and taking into account the positive views of its technical feasibility expressed both by independent consultants and in United States trade journals, the Department of Commerce and the Northern Ireland Development Agency were satisfied that detailed technical assessments of vehicle protoypes was not a necessary requirement for the effective evaluation of the De Lorean projects.
§ Mr. Cryerasked the Secretary of State for Northern Ireland if he will state the 585W method of supervision and scrutiny involved in the £53 million Government support for the De Lorean car manufacturing venture.
§ Mr. ConcannonThe formal agreement with De Lorean Limited requires the Department of Commerce and the Northern Ireland Development Agency to be supplied with quarterly management accounts within two months of the end of each quarter and with detailed audited annual accounts within four months of the end of the financial year. In addition, the Department has the right to request any other financial information which it may require.
The Northern Ireland Development Agency is also entitled to designate two of the company's directors for as long as it holds shares in the company, or while there is any outstanding loan or guarantee of indebtedness issued by the Department or the agency to the company or its subsidiaries of affiliates. As a further measure, the company has covenanted to supply both the Department and the agency with copies of all detailed business plans and reports submitted to the board of directors.