MG Rover

Trade and Industry written question – answered on 6th June 2005.

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Photo of John Hemming John Hemming Liberal Democrat, Birmingham, Yardley

To ask the Secretary of State for Trade and Industry when Ministers in his Department first informed the press that they were offering MG Rover (Phoenix Venture Holdings) a bridging loan of £100 million; and for what reasons this information was provided.

Photo of Ian Pearson Ian Pearson Minister of State (Trade), Foreign & Commonwealth Office, Minister of State (Trade), Department of Trade and Industry

On 1 April, in response to press speculation, the Department informed the press that if there were the prospect of a commercial deal being done, both MG Rover and SAIC were aware that the Government would consider the option of providing a bridging loan facility to that deal. If it were to be offered, any potential bridging loan facility would be provided under strict criteria to ensure the proper use of taxpayer's money and would of course be fully repayable.

No formal decision to offer a bridging loan to MG Rover was taken by the Department. This position was set out in the then Secretary of State's statement of 7 April.

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John Hemming MP
Posted on 9 Jun 2005 10:14 pm (Report this annotation)

I was surprised they admitted this that easily.