10 March 2000

STATEMENT ON HARLAND & WOLFF FROM ADAM INGRAM MP, MINISTER OF STATE AT THE NORTHERN IRELAND OFFICE

"Government offered Harland and Wolff an unprecedented level of support for its bid to win the Queen Mary II contract from Cunard. This included:

• Intervention Fund support of £38 million - the maximum grant allowable under European Union rules; and
• the largest ever loan guarantee - £400 million - under the Home Shipbuilding Credit Guarantee Scheme and repayable at the completion of the contract.

"This extensive package of support was put together in a few days by several Cabinet Ministers and their departments working closely together and was based on what was only an outline business plan from Harland and Wolff.

"In addition, the Prime Minister took a personal interest in putting the package together. The Deputy Prime Minister, John Prestcott, intervened directly by lobbying Cunard on Harland and Wolff's behalf.

"It is regrettable that, despite this massive support and effort from Government, Harland and Wolff has not been able to compete successfully for this important contract.

"The Government will continue to do everything possible to assist the company to secure the future of the Yard."