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Linwood (Grants And Loans)

Volume 12: debated on Wednesday 11 November 1981

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asked the Secretary of State for Industry how much public money has been paid by his Department to the firms of Rootes, Chrysler and Talbot since the beginning of the Rootes car factory in Linwood, in the forms of grants of all kinds, set out in the various categories, and outstanding loans.

Under the agreement signed between the Government and Chrysler in 1976 a total of £64 million was paid to the company in the form of loss subvention grants. Loans totalling £50 million were also made to the company, of which £22 million has now been repaid, leaving £28 million outstanding. Particulars of assistance to individual companies under the Industry Acts 1972 and 1980 are generally regarded as confidential between the Department of Industry and the applicant. However, since 1 October 1974 regional development grants in excess of £25,000 and offers of selective assistance in excess of £5,000 have been published on a quarterly basis in British Business—formerly Trade and Industry. Fourteen payments of regional development grants totalling some £2·4 million to Chrysler Scotland Ltd. in respect of its Linwood premises have been published in this way.Information relating to assistance given to Rootes Ltd. or under the Industrial Development Act 1966 is not available.