§ Mr. RedwoodTo ask the Secretary of State for Trade and Industry how many companies have received start-up grants and closed within two years of opening in the last five years.[58119]
§ Mr. Mandelson[holding answer 3 November 1998]Over the past five years, there have been 957 offers of Regional Selective Assistance grant for start-up projects. Of these, 61 companies closed within two years of the offer being accepted.
§ Mr. RedwoodTo ask the Secretary of State for Trade and Industry by whom the decision not to recover start-up grant from Siemens at present was made; what the company has been told as regards possible future repayment of that grant; and if he will make the relevant correspondence available in the Library. [58117]
§ Mr. Mandelson[holding answer 3 November 1998]My officials are currently working with the company trying to find a buyer for the plant. Whilst that is the case, I have decided that it would be inappropriate to recover the grant. However, the company has been informed that if any of the grant aided assets are removed without prior permission, or the plant finally has to close, it would be58W in breach of the conditions set down in the offer letter and the Department would have the power to seek full recovery, plus interest if appropriate, of the £18 million grant paid.
I will not be making the correspondence available in the Library. This is part of the official record and would add nothing to the answer above.