Brussels row over pounds 80m Jaguar aid
Monday 23 October 1995
A row is developing between the European Commission and the Department of Trade and Industry over delays in Brussels approving a government aid package to Jaguar.
Sources in Brussels say the DTI has been dragging its feet in replying to requests for information about the pounds 80m subsidy to the company, and the Commission may not now be in a position to approve the aid until the end of the year.
A DTI official was due to meet counterparts at the EU's competition office this week to help speed up approval, which Jaguar says is essential if it is to go ahead with a pounds 400m assembly plant.
Ford, which owns the Midlands-based luxury carmaker, had said that unless it received the money it would build a new Jaguar model, the X200, in the United States.
One critic of the DTI's handling of the affair said this weekend that the department had not fully thought through the terms of the aid, and was now having difficulty answering the Commission's questions.
Awarding the money is proving embarrassing for the DTI, and appears to be opening the floodgates for similar requests.Last week the Independent revealed that Rover group was talking to the DTI about a pounds 70m-pounds 100m package towards a pounds 300m investment in a new engine plant. But a DTI spokeswoman dismissed the criticism, saying the size of the package meant it would take time to clear Commission competition rules. "We are responding to their questions in a timely manner."
In July, when Ian Lang, president of the Board of Trade, announced Jaguar's investment in the blaze of publicity, the DTI said it expected speedy approval. The aid is divided into two tranches: pounds 48m in regional selective assistance, and pounds 32m in local authority and agency grants. It is thought the regional aid will be cleared but a question mark hangs over whether the pounds 32m breaks Commission competition rules.
A Jaguar spokesman said this weekend that the company was still confident the Commission would eventually approve the aid.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
musicPolice chief rejects rappers' claims that his work is as dangerous as law enforcement or military service
comedy'Fresh Meat' star sees off stiff competition from Alan Carr, David Mitchell, Graham Norton, Lee Mack and Sarah Millican to win top prize
Beatles rush out 'bootleg' album to defy EU copyright law
healthJames Bond's alcohol consumption puts him at 'high risk' of cirrhosis, tremors... and impotence
tvSpoiler alert: Find out the result of a heated final show
Harvey Weinstein reveals his secret weapon on-set
Now that an oil trader's drinking has got him sacked, will we all have to make do with an afternoon latte?
Chiwetel Ejiofor and Idris Elba get nods for Best Actor, which no black Brit has ever won
Geoffrey Macnab reviews The Desolation of Smaug - the meat in Peter Jackson's Hobbit sandwich
peopleWhat advice would David Cameron give to his younger self?
French café starts charging extra to rude customers
Mystery of Epping Forest 'big cat' is solved
North Korea executes Kim Jong Un's powerful uncle Jang Song Thaek for 'attempting to overthrow the state'
Australia incest case: Deformed children found in remote farming community after generations of inbreeding
Fox News presenter tells viewers it is a 'fact' that both Jesus and Santa Claus are white
- 1 French café starts charging extra to rude customers
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Australia incest case: Deformed children found in remote farming community after generations of inbreeding
- 4 Physicists discover 'clearest evidence yet' that the Universe is a hologram
- 5 Fox News presenter tells viewers it is a 'fact' that both Jesus and Santa Claus are white
- < Previous
- Next >
iJobs Money & Business
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...
£30000 - £45000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Pre-Sales / Cl...
£40000 - £60000 per annum + Bonus + Benefits: Harrington Starr: Regulatory Man...