Sheffield Forgemasters: Loans

Business, Innovation and Skills written question – answered am ar 23 Mawrth 2010.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Dai Davies Dai Davies Annibynnol, Blaenau Gwent

To ask the Minister of State, Department for Business, Innovation and Skills what rate of interest will be charged on the £80 million loan to Sheffield Forgemasters announced on 17 March 2010; what the repayment period is of the loan; what guarantee his Department sought from Sheffield Forgemasters in respect of that loan; and whether the European Commission has approved that loan under state aid rules.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Innovation and Skills), Member, Labour Party National Executive Committee

The offer of conditional support to SFIL is in the form of a £80 million direct loan. Although the key heads of the deal have been agreed some details will not be finalised until after commercial due-diligence is completed and European Commission approval has been granted.

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Annotations

Ken Brookman
Posted on 24 Maw 2010 2:00 pm (Report this annotation)

And what about asking a question on BLAENAU GWENT'S employment problems then Mr D? You shouldn't be worried about Sheffield but your own constituency. Perhaps Mr D could tell us how many jobs he has managed to bring to his constituency?, other than that is the five he employs in his office. Perhaps he could manage to get a loan to emprove the employment prospects of Blaenau Gwent for a change instead of continually telling people his favourite statement that "I live in one of the poorest constituencies in the UK".. WHY I say? He hasn't obviously managed to do anything in this constituency to improve the lot of anybody other than himself.

Richard Wendland
Posted on 25 Meh 2010 11:32 am (Report this annotation)

Angela Smith layer revealed that the Sheffield Forgemasters loan would have been at 3.5% interest [HC Deb, 23 June 2010, 4:37 pm, c360], well below commercial rates.

Vince Cable later gave the reasons for not going ahead as "a very highly geared project promised extraordinary rates of return to the private promoter." and "a lot of questions had to be asked about the affordability, value for money and risk of that project." [HC Deb, 23 June 2010, 1:14 pm, c310]