§ Mr. Maddenasked the Secretary of State for the Environment (1) what steps he is taking to secure the repayment of urban development grant paid to Midland Hotel (Bradford) Ltd and Electra Investment Trust plc for refurbishments at the Midland hotel, Bradford, in the light of the voluntary liquidation of Midland Hotel (Bradford) Ltd; and if he will make a statement;
(2) how much urban development grant was offered to Midland Hotel (Bradford) Ltd. and Electra Investment Trust plc to refurbish 34 bedrooms at the Midland hotel, Bradford; how much has been paid to date; and if he will make a statement.
§ Sir George YoungUrban development grant approval was given in June 1985 to a contribution of £250,000 proposed to be made by the City of Bradford metropolitan district council towards refurbishment of the Midland hotel, Bradford. I understand that no grant has been or will be paid. The question of recovery does not therefore arise.
§ Mr. Maddenasked the Secretary of State for the Environment what appraisal was made when urban development grant was offered to Midland Hotel (Bradford) Ltd and the Electra Investment Trust plc in 1985 of both companies; what guarantees were given by both companies; what undertakings were given in the event of either, or both companies disposing of its interest in the Midland hotel, Bradford, or either company going into voluntary liquidation; and if he will make a statement.
§ Sir George YoungAppraisal of the application for urban development grant was carried out on the basis set out in the Department's guidance notes. The financial circumstances of prospective recipients of urban development grant are investigated in the course of appraisals and, where appropriate, conditions are attached to offers of grant requiring guarantees to be given by holding of associate companies or the repayment of grant on disposal of grant-aided assets of failure to complete the 325W project. For reasons of commercial confidentiality, it is not the practice to disclose the terms of individual offers of grant.
§ Mr. Maddenasked the Secretary of State for the Environment when his Department carried out an appraisal of Midland Hotel (Bradford) Ltd. and the Electra Investment Trust plc, prior to these companies being offered urban development grant in 1985 to refurbish bedrooms at the Midland hotel, Bradford.
§ Sir George YoungAppraisal of the application submitted by the City of Bradford metropolitan district council on behalf of Midland Hotel (Bradford) Ltd. and negotiation with the parties took place between submission of the application in 1984 and the grant approval in June 1985.