HC Deb 29 July 1983 vol 46 cc746-7W
Mr. Arnold

asked the Secretary of State for Trade and Industry if he has any plans to extend the operation of the loan guarantee scheme.

Mr. Trippier

No. The three-year pilot phase of the scheme comes to an end in May 1984. I will be conducting a thorough review of the scheme in the autumn and it would clearly be premature to consider any significant changes to the scheme at this time.

Mr. Arnold

asked the Secretary of State for Trade and Industry if he is satisfied with the operation of the loan guarantee scheme; and if he will make a statement.

Mr. Trippier

The last review of the scheme carried out by my predecessor indicated that, in general, the scheme was operating well. The take-up of the scheme continues at an encouragingly high level. I will be embarking on a further major review of the scheme in the autumn by which time it will be nearing the end of the three-year pilot phase.

Mr. Arnold

asked the Secretary of State for Trade and Industry what has been the net cost of the loan guarantee scheme since its inception.

Mr. Trippier

The net cost, in terms of payments made to the banks and income derived from premiums and recoveries, was about £16.3 million at 30 June 1983. However this figure takes no account of the wider economic and social benefits arising from the scheme's operation.