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Volume 35: debated on Thursday 27 January 1983

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asked the Secretary of State for Industry what application he has received for additional financial aid for Inmos; and what response he has made.

My right hon. Friend has now given his consent to an application from the National Enterprise Board, now operating as the British Technology Group, to provide a further £15 million equity to Inmos in order to build up production at Newport and bring the company to the point where it can rely on private sector sources of funding for its future development.

asked the Secretary of State for Industry if he will make a detailed statement on any changes from its original plans which have been notified by Inmos to his Department and any effects these will have on job prospects in the area where it operates.

[pursuant to his reply, 26 January, Vol. 35, c. 449]: This is a matter for the British Technology Group but in announcing its new £15 million equity finance for Inmos on 25 January the BTG said that this would mainly go to building up production and employment at its Newport Gwent manufacturing facility.

asked the Secretary of State for Industry if he will list the National Enterprise Board's shareholding in Inmos, stating when the public money was invested, together with any loans outstanding; whether he has formally approved the transfer of further funds from the National Enterprise Board to Inmos; and what intructions he has given to the National Enterprise Board about further investment in the company.

As at 31 December 1982 the NEB's shareholdings in Inmos were of 1,850,000 5p ordinary shares and 2,500,000 £20 convertible preference shares. These funds were subscribed at various times during the period from August 1978 to April 1981.My right hon. Friend the Secretary of State has approved the provision by the NEB of a further £15 million to Inmos in order to allow the company to progress to the stage where further capital can be attracted from the private sector, and the NEB's stake can be reduced. The £15 million is to be in the form of convertible preference shares, but pending conclusion of the subsription agreement it was advanced as a loan by the NEB on 26 January 1983. There are no other loans outstanding to Inmos from the NEB.