§ Mr. Beith asked the Secretary of State for Industry whether he is satisfied with the acceptance rate of applications submitted under the loan guarantee scheme.
143W§ Mr. MacGregor:Information is not available to indicate the number of occasions where the banks themselves have decided not to put forward an application to the Department of Industry. However, I am satisfied with the fact that very few applications submitted to the Department by the participating banks have been rejected by the loan guarantee unit.
Mr. Colvin asked the Secretary of State for Industry whether, in view of the demand for guarantees under the Government's loan guarantee scheme, he will increase the ceiling of £50 million for the year; and whether more banks will be joining this scheme.
§ Mr. MacGregor:In view of the substantial response to the scheme to date, we have decided to increase the ceiling for the first year, which started on 1 June 1981, to £100 million. The Government will be reviewing the progress of the scheme when more experience has been gained of it.
A large number of financial institutions not already included within the scheme have expressed interest in participating than can be accommodated in a limited pilot scheme. A further mumber of these are being invited to take part. An announcement will be made when agreements with them are signed. I have already made clear the criteria on which these applications will be judged. In view of the already substantial numbers applying I have decided that I cannot consider any further fresh applications at the present time.