Industry (Government Support)
Debate between Andrew Miller and Pat McFadden(13 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andrew Miller
No, I will not for the moment.
The Secretary of State and I had a short exchange about Vauxhall Motors earlier, and there have been developments during the course of the afternoon. The Government eventually agreed that the loan guarantee approved by Lord Mandelson had been approved correctly and was in order—contrary to earlier suggestions—but despite that and because of what has happened in Germany and the UK, the company finds itself having to drive things forward itself. In a statement issued this afternoon, the company says:
“We cannot afford to have uncertain funding plans and new time-consuming complex negotiations at this time when we need to keep investing in new products and technologies. With these new products and the impact of restructuring, we expect to return to profitability shortly”.
The parent company is going to support the necessary changes. It is a pity that the Government were not part of the solution, but I welcome the fact that the mischief that had been created over the inappropriateness of the grant has at last been dealt with.
Mr McFadden
Does not my hon. Friend agree, however, that the delay involved in this case should serve as a warning of the damage that can be caused by needlessly calling a halt to important industrial projects? It is little use the Government coming along today and saying that they have approved the loan guarantee, on the very day that the company in question has run out of patience.