§ Mr. Millanasked the Secretary of State for Industry if he will place in the Official Report details of the agreement in 1978 between the then Government and PSA/Citroen on the basis of which the Government took over Chrysler UK, and the text of the declaration of intent made by the company at that time.
§ Mr. Michael MarshallA copy of the agreement between the Secretary of State for Industry and PSA/ Citroen dated 16 December 1978 and a copy of the declaration of intent by PSA have been placed in the Library.
§ Mr. Millanasked the Secretary of State for Industry if he will give details of the financial assistance provided to Chrysler UK and PSA/Citroen as its successor, under the 1975 agreement between the then Government and Chrysler, and the 1978 agreement between the then Government and PSA/Citroen, and state what payments are still due to be made under these agreements and how much will be repayable by PSA/Citroen if they proceed with their proposal to close Talbot, Linwood.
§ Mr. Michael MarshallUnder the agreement dated 5 January 1976 between the Secretary of State for Industry, Chrysler United Kingdom Ltd. and the Chrysler Corporation, and the successor agreement involving PSA of 16 December 1978, the United Kingdom company has received
—a guaranteed loan of £28 million repayable over five years commencing 31 December 1985;—a secured loan of £22 million which was repaid in August 1980;—grants towards losses in the years 1976 to 1979 up to a maximum of £72.5 million, of which £64 million was paid.There are no further payments due to be made under the agreement. It is open to the Government to require repayment of the guaranteed loan in the event of any substantial alteration to the general nature of the company's business. We intend to discuss in detail with the company the full implications of its announcement for the totality of its operations in the United Kingdom, and the future status of this loan will form part of these deliberations.