§ 25. Mr. Knoxasked the Secretary of State for Industry what is the total amount of loans made at favourable interest rates under article 56.2 (a) of the European Coal and Steel Community Treaty to firms wishing to create new job opportunities in steel and coal redundancy areas 18W in each region of the United Kingdom since the United Kingdom joined the Community; and what has been the effect on employment of these loans.
§ Sir Keith JosephTo date, article 56 loans worth over £128 million have been advanced to firms in the United Kingdom. The projects concerned are expected to create over 25,000 new jobs in coal and steel closure areas. The regional analysis of these loans is shown below. In addition, loans worth £160 million have been approved by the ESCS and are awaiting disbursement or are currently under consideration. The projects concerned are expected to provide 35,000 jobs. It is not possible to estimate the net effect on employment of these loans.
Regional Breakdown Area Total Value of Loans (£m) Estimated Job Creation Scotland 24.9 4,960 Wales 69.3 13,860 North 23.7 4,740 East Midlands 6.1 1,220 Yorks & Humberside 4.1 820 TOTAL 128.1 25,600 Note: The job figures are on estimates provided by the firms carrying out the projects concerned.