HC Deb 27 October 1994 vol 248 cc787-8W
Mr. Nicholas Winterton

To ask the Secretary of State for Northern Ireland how much money was paid in total in grants to the De Lorean motor car company; how much of that money has to date been returned; what has been the cost of the legal proceedings to obtain that return; how many workers in Northern Ireland are currently employed by the company; and what specific changes in policy and procedure have now been implemented by his Department to ensure there is no repetition of the De Lorean affair.

Mr. Ancram

[holding answer 24 October 1994]: De Lorean Motor Cars Ltd. received Government assistance amounting to some £77.3 million, including £17.76 million in preference share capital. The company is now in receivership and liquidation and has no employees. The Department of Economic Development has received in excess of £10 million from the receivership and some £5.9 million from other sources. No costs were incurred by the Government on legal proceedings to obtain these sums.

The operating arrangements and investment criteria of the Industrial Development Board were carefully worked out following a comprehensive assessment of the De Lorean case to ensure that such a project would not be supported in future. Those arrangements were reviewed following the 25th report of the Public Accounts Committee and are fully compatible with the recommendations in paragraphs 91 to 98 of that report.

As a separate issue, the Government are pursuing an action for damages against Arthur Anderson and Company in relation to its role as auditors of De Lorean Motor Cars Ltd.