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Motor Vehicles: Manufacturing Industries

Volume 508: debated on Monday 29 March 2010

To ask the Minister of State, Department for Business, Innovation and Skills how many loans have been provided under his Department's Automotive Assistance Programme in each constituency; and how much has been loaned in total under the scheme in each constituency. (324491)

The Automotive Assistance programme (AAP) was set up to provide loan guarantees, and in exceptional cases, loans. On 18 September 2009, the Department announced the offer of a £10 million loan to Tata Motors European Technical Centre to support £25 million of investment in the Coventry area. However, the company was subsequently successful in accessing financial support elsewhere.

On 12 March 2010, we announced a conditional offer of €300 million (£270 million) loan guarantee to GM Europe which will help secure the company’s operations in Britain and the rest of Europe.

On 18 March 2010, we announced the Government’s willingness to provide £360 million in loan guarantees under the AAP towards six projects at Ford’s research and development centre at Dunton in Essex and its manufacturing plants in Dagenham, Southampton and Bridgend in South Wales, supporting a proposed loan from the European Investment Bank.