§ Mr. Bruce-Gardyneasked the Secretary of State for Northern Ireland what has been the aggregate cost to public funds of money committed to date to the production of the Lear Fan 2100; what were the respective shares of Her Majesty's Government and LearAvia in the initial investment in the project and their respective proportions of the equity and why; what is his latest estimate of the final cost of their venture and the proportion to be borne by public funds; and what is the number currently employed upon it at Alder-grove, the numbers to be employed at peak production, and the date at which that phase is expected to be reached.
§ Mr. Giles Shaw[pursuant to his reply, 9 July 1980 c. 220]: As I announced on 486W 14 February 1980 the LearAvia Corporation of the USA intends, with the support of the Government, to establish production in Northern Ireland of the Lear Fan business aircraft now under development. A new United Kingdom company, Lear Fan Limited, has been formed with a Government contribution in the form of option payments totalling $3.4 million and a bridging loan of $5 million. A similar amount has been invested by the LearAvia Corporation. The Government's contribution will either be repaid at twice its face value in the form of royalties on aircraft delivered, or converted into shares in the Lear Fan company. Conversion would result in 49 per cent. equity, so that even in this event the predominantly private sector character of the project would be maintained. In addition, $30 million private funds have been invested in research and development through a United States limited partnership agreement. It is not the Government's normal practice to disclose the amount and form of industrial development assistance to individual companies in Northern Ireland and I therefore regret that I cannot provide this information. However, my hon. Friend will know that the Government's policy in this respect is under review.
Only a few people are employed at present, but the company's recruitment and training programme is proceeding satisfactorily and it is estimated that some 1,250 people will be employed within about four years from now.