HC Deb 08 December 1998 vol 322 c182W
Mr. Denzil Davies

To ask the Secretary of State for Wales how much financial assistance has been provided to date by his Department and by Government bodies in Wales to LG Industries for the proposed semi-conductor investment at Newport, Gwent. [62223]

Mr. Hain

Out of the total support package offered to the overall LG development at Newport the payments to LG Semicon to date amount to £43.328 million. This represents the apportioned value of the land acquired for the development, the general infrastructure and site development costs attributable to LG Semicon, and the property development grant paid by the Welsh Development Agency. This total also include training grants of £528,487 paid by Gwent TEC.

None of the grant offered under the Regional Selective Assistance scheme has yet been paid.

Mr. Denzil Davies

To ask the Secretary of State for Wales what procedures his Department has in place to ensure that LG Industries repays any financial assistance received from his Department and from Governmental bodies in Wales for the proposed semi-conductor investment at Newport, Gwent, if the proposed investment does not go ahead. [62224]

Mr. Hain

The Welsh Development Agency has agreements in place with both LG Electronics Ltd. and LG Semicon Ltd. which provide for recovery of grant payments in appropriate circumstances. The Regional Selective Assistance offered to the Companies is also subject to detailed recovery provisions. Gwent TEC makes payments to the LG Companies only when individuals have been training and in employment for 3 months. The total of training support will not be paid if training does not take place for the agreed numbers of staff.