HC Deb 29 April 1991 vol 190 c54W
Ms. Quin

To ask the Secretary of State for Trade and Industry (1) when the Department received an official response from Carnon Holdings to his Department's decision to withdraw funding from the Cornish tin mining industry;

(2) what was the response of Carnon Holdings to his Department's decision to withdraw funding from the Cornish tin mining industry;

(3) when his Department officially notified Carnon Holdings of the decision to cease funding for its tin mining operations; and what prior discussions with the company had taken place;

(4) when his Department took the decision to withdraw funding from the tin mining industry.

Mr. Leigh

[holding answer 22 April 1991]: Numerous discussions and other contacts have taken place since early 1990 on the question of the viability of Carnon Holdings Ltd.'s tin mining project, a precondition for advances of DTI loan money. The decision not to advance any further money to Carnon was made and conveyed orally to the company on 22 February 1991. It was confirmed in writing on 25 February. Carnon replied to the Department on 25 February enclosing its press release of the same date announcing its response to the decision.

Ms. Quin

To ask the Secretary of State for Trade and Industry if he will make a statement on the reasons for his Department's non-payment of the first instalment of 1.7 million to Carnon Holdings Ltd. to finance Cornish tin mining operations.

Mr. Leigh

[holding answer 25 April 1991]: I refer the hon. Member to my speech in the Adjournment debate on 6 March at column 431–438. I explained inter alia that the Government had come to the conclusion that the tin mining project was not viable in the longer term. The rules of financial and parliamentary accountability then meant that we could not make any further payments under the loan.