Cameron Q&A: Forgemasters told to find its own funding

SHEFFIELD Forgemasters has been told it should look to raise equity itself rather than look to the Government for a loan.

By The Newsroom

Published 30th Jun 2010, 13:23 BST

Updated 30th Jun 2010, 15:48 BST

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Following controversy over the Coalition Government's decision to scrap an 80m loan to the company agreed by the previous Labour administration, David Cameron said it was not right for a Government to provide loans to companies, who had other means of raising the money.

Craig McKay of the Evenot firm said that since the decision was made there had been a "lack of information" coming from Government on the matter.

But Mr Cameron said the previous Government had agreed to many financial decisions "without too much regard for value".

"The first call for getting new funding should surely be looking at whether you can dilute equity – get more equity holders into the business and raise money like that."