Investment Aid (Hansard, 20 July 1994)

§ Mr. Nicholas Winterton
To ask the Secretary of State for Northern Ireland, pursuant to his answers of 8 July,Official Report, columns 359–60, if he will identify the leading independent internationally recognised consultants from whom he sought advice in connection with the implications for existing companies prior to reaching conculsions about the award of investment aid to encourage the opening of new facilities in Northern Ireland by the Hualon Corporation; what was the cost of that advice; if he will arrange for a copy of the advice to be made available in the Library; what was the basis upon which the consultants were appointed; what steps were taken to ensure that they had no conflict of interest with other clients; what procedures are adopted in commissioning such consultants; by whom the appointment was made; and if he will make a statement.

§ Mr. Tim Smith
The international consultants were Kurt Salmon Associates.
340W
KSA conducted a detailed and comprehensive appraisal of the Hualon project—including technical, production and market aspects—and it is not possible to isolate the cost of the advice relating solely to the implications for existing companies.
The KSA report contains commercially confidential information and therefore will not be made available in the Library.
The consultants were appointed on the basis of their international reputation and specialist expertise within the global textile industry.
It is the established code of practice among major international consultancy firms to declare any potential conflict of interest prior to taking on any assignment. No such conflict of interest was declared by KSA prior to accepting the Hualon assignment.
In commissioning such consultants due weight is given to the extent and availability of their expert resources, their track record and their international standing.
KSA was selected and appointed by the Industrial Develpment Board from an internal register of specialist consultants.

§ Mr. Nicholas Winterton
To ask the Secretary of State for Northern Ireland, pursuant to his answers of 8 July,Official Report, columns 359–60, how much money is being made available, and when, to the Hualon Corporation in the form of inward investment and other incentives to encourage it to proceed with plans to open a new facility in Northern Ireland.

§ Mr. Tim Smith
Total selective financial assistance offered towards the establishment of the Hualon textile plant is approximately £61 million. It will be paid out over a 10-year period as the project proceeds through its four phases, mainly in the form of grants towards capital expenditure on buildings, plant and machinery.

§ Mr. Nicholas Winterton
To ask the Secretary of State for Northern Ireland what representations his Department has received concerning estimated job losses associated with the award of investment aid to the Hualon Corporation in connection with the development of new textile facilities in Northern Ireland; and if he will make a statement.

§ Mr. Tim Smith
My Department has received two representations concerning potential job losses as a consequence of the Hualon project.

§ Mr. Nicholas Winterton
To ask the Secretary of State for Northern Ireland, pursuant to his answers of 8 July,Official Report, columns 359–60, if he will now make it his policy in future to consult industry both in Northern Ireland and elsewhere in the United Kingdom about the implications for existing companies prior to reaching conclusions about the award of investment aid to encourage the opening of new facilities in Northern Ireland.

§ Mr. Tim Smith
In reaching any decision to offer assistance to encourage new investment in Northern Ireland my Department is required to consider carefully the implications for existing companies both in Northern Ireland and in the rest of the United Kingdom. My Department does not consult industry or companies about such decisions and will not do so in future. This policy is 341W the same as that applied in other parts of the United Kingdom where regional assistance is available and I see no reason to change this policy.