§ Mr. HammondTo ask the Secretary of State for Trade and Industry what measures are used to ensure that her Department is able to recover any grants awarded to overseas companies in connection with investment projects in the UK, that subsequently became repayable. [73650]
§ Alan JohnsonIt is normal to seek a legally binding guarantee of repayment from the parent company. Other conditions may be sought depending on the circumstances of the specific case.
§ Mr. HammondTo ask the Secretary of State for Trade and Industry how much of the grant money paid to Viasystems Inc group in respect of its North Tyneside plant has been recovered. [73651]
§ Alan JohnsonWe have recovered £3 million to date, in two tranches. The Department is in continuing discussions over the remaining sum.
§ Mr. HammondTo ask the Secretary of State for Trade and Industry if she will ask the Comptroller and Auditor General to review the safeguards in place to
146WFigures for claims indicate the year of payment rather than the year of underwriting. The majority of these claims have been subject to internationally brokered rescheduling agreements and it is expected that these claims will be recovered in full over time.
The calculation of the premium amount for defence business in 1999–2000 has fallen slightly (from £27 million to £25.4 million) since ECGD was first asked to provide this figure. This is due to a combination of improved systems for reporting on business by industrial sector and movements in sterling—US dollar exchange rates.
ensure that grant moneys paid to overseas companies can be recovered if they subsequently become repayable, with special reference to the case of Viasystems Inc. [73652]
§ Alan JohnsonThe Comptroller and Auditor General is an independent officer of the House. If the hon. Member wishes such a review to be carried out, I suggest he raises the matter with him.