HC Deb 02 November 1988 vol 139 cc641-2W
Mr. Foulkes

To ask the Secretary of State for Foreign and Commonwealth Affairs what information he has concerning the recent collapse of Seamount Ltd.

Mr. Eggar

Seamount Ltd, a joint venture between Seaboard Offshore Ltd. of Aberdeen and Stanley Fisheries Ltd, a wholly owned subsidiary of the Falkland Islands Development Corporation, was incorporated in the Falkland Islands in November 1987. The company purchased and converted two stern trawlers to operate in the south-west Atlantic. The Falkland Islands Government have appointed financial and legal consultants to advise on a controlled rundown of the company, and have instituted a formal inquiry into the matter.

Mr. Foulkes

To ask the Secretary of State for Foreign and Commonwealth Affairs what action is being taken in connection with the recent collapse of Seamount Ltd. and what is the current position in relation to the boats and personnel involved.

Mr. Eggar

The Falkland Islands Government have set up a formal enquiry into Seamount Ltd. The MV, Mount Challenger and the MV Mount Kent are at present in Falmouth and Port Stanley respectively. Seaboard Offshore Ltd, which is responsible for crewing and management of the vessels, is running them on a care and maintenance basis until their future is decided.

Mr. Foulkes

To ask the Secretary of State for Foreign and Commonwealth Affairs how much the collapse of Seamount Ltd. will cost the British Exchequer; and under which heading the initial finance of the company was guaranteed.

Mr. Eggar

The majority of the initial finance came from a bank loan of £4.8 million guaranteed by the Export Credits Guarantee Department. This could have implications for the ECGD. No other British Exchequer funds are involved.