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Steelworks loan would have made Government £30million in interest
THE Government would have made £30.9 million in interest payments had it approved an £80 million loan for Forgemasters, Sheffield South East MP Clive Betts has revealed.
The Labour politician received the figure from the Department for Business, Innovation and Skills after asking a question in Parliament.
Chief Secretary to the Treasury, Danny Alexander, was unable to answer a further question asking how much additional tax the Government would have received from the extra jobs which would have been created at the new nuclear components press which would have been part paid for with the loan.
Mr Betts said: "It could have been profitable for the treasury and would have been at no cost to the taxpayer."
But the Government said it did not have the money spare to lend to Forgemasters. It has emerged the company could have raised the cash privately but would have lost its independence so did not want to proceed with that option.
Opposition Labour councillors in Sheffield have requested an emergency Town Hall debate on the future of Forgemasters at the next full council meeting next Wednesday.
Deputy Labour leader, Coun Bryan Lodge, said: "Labour and Sheffielders alike feel let down by city MP and Deputy Prime Minister Nick Clegg and by our Lib Dem council leader Paul Scriven, who broke his promise to stand up for Sheffield.
"The previous Labour Government's decision to loan this money to Forgemasters wasn't made in haste. It took three years to get a deal together which both Labour and private industry viewed as ideal."
But Lib Dem leader Coun Paul Scriven said: "Personally, I think that a solution for Forgemasters is best found if we all work together in a sensible, non-party political way.
"There is no need to wait for a debate in the council chamber. If Labour have any new suggestions for how the council can help Forgemasters, my door is always open."
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Saturday 26 May 2012
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