§ Mr. Joel Barnettasked the Secretary of State for Industry, pursuant to the answer to the right hon. Member for Heywood and Royton on 29 June, Official Report, c. 262, how many of the 4,440 guarantees were in respect of wholly new loans, and how many were wholly or partly existing loans reconstituted under the loan guarantee scheme; how many further claims are being processed; how many of his staff are engaged on monitoring the scheme; and when he expects to announce the results of his review of the scheme.
§ Mr. MacGregor2,214 of the 4,440 guarantees issued in the first year of the scheme were for new businesses and were therefore clearly new loans. It is not possible to give wholly accurate figures in respect of existing businesses, but the results of a sample survey of 100 borrowers under the scheme carried out as part of my preliminary review suggest that the refinancing of existing lending constitutes only a very small proportion of total scheme lending. A further 35 claims under the terms of the Government's guarantee have been or are being processed. Monitoring is carried out as part of the process of issuing guarantees and is one of the functions of the loan guarantee unit, which has seven staff. In addition, Department of Industry economists and other specialist staff are used as necessary, in particular in carrying out such exercises as the sample survey. My preliminary review is nearing completion and I hope to be able to announce the outcome before the Summer Recess.