Row as growth and jobs give post-Brexit lift
Tories: No sweetheart deal for Nissan car plant pact
THE UK Government has denied allegations it gave a Japanese car manufacturer Nissan a “sweetheart deal” in return for moving production of two models to Sunderland.
The denials came as the UK economy bucked predictions of a post-EU referendum slowdown.
As Labour shadow chancellor John McDonnell warned about the damage that could be caused by “secret deals behind closed doors”, party leader Jeremy Corbyn insisted the Government must make any arrangements with Nissan public.
The UK Government and the Japanese manufacturer denied any special arrangement was in place to protect the car maker from a postBrexit EU tariff wall.
Gross Domestic Production (GDP) figures bucked expectations of a substantial slowdown in the three months after the Brexit vote thanks to a “strong performance” from the powerhouse services sector since the vote on June 23.
The Office for National Statistics (ONS) said output grew by 0.5 per cent in its first estimate of third-quarter growth, down slightly from 0.7 per cent in the second quarter. A steeper fall of 0.3 per cent had been expected.
There was little evidence of a “pronounced” impact on the UK economy in the immediate fallout of the EU referendum result, the ONS added.
The Japanese giant’s decision to build its next-generation Qashqai, and add production of the new X-Trail at the site will secure thousands of jobs in the first major UK automotive decision since the poll on June 23.
But Mr Corbyn said any arrangement with Nissan “must be made public, because it is public money that will be used if there are any inducements that have been offered and quite obviously, if you are offering big inducements to one industry or one manufacturer, then all the others will quite reasonably say, ‘Well, what about us?’”
Mr McDonnell said the lack of clarity about what level of support the Government had offered Nissan was a concern, and attacked ministers’ approach to industry.
“It’s utterly chaotic at the moment. We have got a situation where we get leaks and rumours. Are they now going to decide, literally, factory by factory the support they are going to give?”
Pressed on whether written assurances on compensation for any future EU tariffs had been given, Business Secretary Greg Clark told Radio 4 World At One: “We have had, obviously, as you might imagine, lots of communication between us, but actually, what it rests on is a very strong mutual confidence.
“There is no question of financial compensation over tariffs because we have said that they, what is necessary, is that we are going to maintain the competitiveness of the sector, and we are going to get the best deal possible. We think the mutual interest between our European neighbours and ourselves is very strong in this way.”
Colin Lawther, Nissan’s senior vice president for manufacturing in Europe, said: “There is no offer of exchange.
“It’s just the commitment from the Government to work with the whole of the automotive industry to make sure that the whole automotive industry in the UK remains competitive,” he told the programme.
Asked if Nissan had received written assurances from the Government on what would happen if tariffs were imposed in the future, he said: “There’s nothing, there’s no special deal for Nissan.”
Chancellor Philip Hammond said: “We are moving into a period of negotiations with the EU and we are determined to get the very best deals for households and businesses.” BARONESS Amos, left, was joined by supermodel friend Naomi Campbell yesterday as she collected an honour at Buckingham Palace.
The former Secretary of State for International Development was at the palace to be made a member of the Order of Companions of Honour.
Born Valerie Amos in British Guiana, now Guyana, South America, she was elevated to the peerage in 1997 as Baroness Amos, of Brondesbury.
In 2003, Baroness Amos became the first black woman to sit in the UK Cabinet.