§ Mr. Michael Marshallasked the Secretary of State for Trade and Industry how many' jobs have been created by the loan guarantee scheme; and what is the average cost of each job created.
§ Mr. TrippierInformation from sample surveys carried out by my Department suggests that loan guarantees authorised up to 31 May 1984 assisted the creation of about 44,500 jobs at a cost after taking account of estimated failure rates of approximately £2,200 per job. These figures do not allow for possible displacement of jobs elsewhere in the economy.
§ Mr. Michael Marshallasked the Secretary of State for Trade and Industry what is the average failure rate among firms which have received support from the loan guarantee scheme; and how these figures compare with the average failure rate of small businesses in general.
§ Mr. TrippierAbout one in three of all firms are estimated to fail within their first three years of existence. The failure rate at the end of three years on guaranteed loans authorised between June 1981 and May 1982 was approximately 40 per cent. Subsequent loans have not yet run for three years. Available figures suggest a reduction in failure rates in the later period but this cannot yet be reliably quantified.