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De Lorean Motors (Government Support)

Volume 958: debated on Wednesday 15 November 1978

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asked the Secretary of State for Northern Ireland if he will outline the precise terms of Government support for De Lorean Motors of Detroit for the plant in West Belfast, including amounts, the division between grants, equity and loan capital, and the terms and conditions applying.

Further to the answer I gave on 9th November to the hon. Member for Newbury (Mr. McNair-Wilson)—[Vol. 957, c. 1162], I am now in a position to make known, with the consent of the De Lorean Motor Company, details of funding for this project from Government sources. The Northern Ireland Development Agency is committed to an investment of £17,757,000 in equity capital. The Northern Ireland Department of Commerce is committed to giving grants totalling £18,718,000 towards the cost of factory construction and plant, machinery and equipment; £9,750,000 in employment grants in respect of the first 1,500 employees of the company; and loans of £6,718,000 towards the cost of factory construction—secured by a first charge on the factory premises.These grants and loans from the Department are given on the normal terms for selective industrial assistance in areas of high unemployment in the Province. The site and existing factory at Dunmurry are also being leased from the Department, and no rent will be charged for the first three years of the lease term. The company will pay to the agency and the Department a total of £185 per car for each of the first 90,000 cars produced and £45 per car for each car produced thereafter.