§ Mr. ParryTo ask the Secretary of State for Trade and Industry if he will estimate(a) the total loss in receipts to the Exchequer and (b) the extra cost to Government Departments arising from the closure of the British American Tobacco factory in Liverpool; and if he will make a statement.
§ Mr. Douglas Hogg[holding answer 6 December 1989]: No realistic estimates are practicable. As to the possible principal effects, no significant loss of tobacco duty or 409W VAT is expected since the factory manufactures for export. Corporation tax payable by BAT will depend upon the company's overall trading results. Unemployment benefits and social security costs depend upon the number of claimants, their individual circumstances and the time before they find other work. The Government's existing programmes to assist enterprise and creation of new jobs are of course available in this area but any such costs would be met from existing provisions.
§ Mr. ParryTo ask the Secretary of State for Trade and Industry if he will assess the effect on the economy of Liverpool of the proposed closure of the British American Tobacco factory; and if he will make a statement.
§ Mr. Douglas Hogg[holding answer 6 December 1989]: No realistic assessment is practicable. British American Tobacco would no longer pay rates on the site but, in that it intends to offer the factory free to the Merseyside development corporation, it seems likely that the premises will again be beneficially occupied and thus rates will again become payable. Unemployment benefits and social security costs depend upon the number of claimants, their individual circumstances and the time before they find other work.
§ Mr. ParryTo ask the Secretary of State for Trade and Industry if he will meet the hon. Member for Liverpool, Riverside and other Liverpool Members to discuss the implications of the proposed closure of the British American Tobacco factory in Liverpool.
§ Mr. Douglas Hogg[holding answer 6 December 1989]: I would be happy to meet the hon. Members concerned.