Oral Answers to Questions

Clive Betts Excerpts

Thursday 8th July 2010 Commons Chamber

[Mr Prisk]

The economic renewal programme, which I have had an opportunity to look at, has considerable merit, not least because it moves away from the tinkering and meddling of the last Labour Government and towards infrastructure. Broadband investment is very important and the Ministers who deal with broadband will have heard his representations. The issue is important and we want to act on it promptly.

[Mr Clive Betts (Sheffield South East) (Lab)]

3. What factors he took into account in deciding to withdraw the £80 million loan facility to Sheffield Forgemasters.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The decision not to pursue the loan was taken on grounds of affordability.

[Mr Betts]

Will the Secretary of State withdraw the entirely false accusations that were levelled at Graham Honeyman, the chief executive of Sheffield Forgemasters, that he was not prepared to sell any shares in the company? The reality is that the loan facility went alongside a private finance package involving equity release. What Graham Honeyman and the workers, 65% of whom own shares in Forgemasters, did not want to do was sell the company off to an absentee owner, given that they had rescued it from an absentee owner and near-bankruptcy in 2005. Will the Secretary of State withdraw the accusations against Graham Honeyman and recognise that he has resurrected that company and that it would do even better in future if it had the loan alongside a package involving equity release?

[Vince Cable]

The Government’s decision has absolutely nothing to do with the issues that the hon. Gentleman has raised. We regard Mr Honeyman and his team as having produced an excellent project. We have no criticism of him or the company. Officials in the Department are now working to try to help to achieve a private sector solution.

--- Later in debate ---

[Mr Speaker]

Order. It is wide, and that is the end of the matter.

[Mr Betts]

On a point of order, Mr. Speaker. Given the unsatisfactory nature of the reply, may I indicate that I would like to seek to raise this matter on the Adjournment at a further date?

[Mr Speaker]

The hon. Gentleman has done so and that is perfectly in order.