Government signals it will not release letters sent to Nissan despite calls for transparency

Business Secretary Greg Clark suggested to MPs he will not publish correspondence due to the need to protect Nissan's commercially sensitive investment plans

Nissan CEO Carlos Ghosn (R) leaves No 10 Downing Street after meeting with British Prime Minister Theresa May (Getty Images )

Letters received by the car manufacturer Nissan from the Government will not be publicly disclosed despite calls for increased transparency, the Business Secretary Greg Clark has indicated.

Ministers have been under intense pressure to reveal the correspondence and terms of its agreements with the Japanese car giant following last week's announcement that the company will build two new models at its plant in Sunderland, securing the future of 7,000 jobs.

Delivering a statement in the Commons, Mr Clark made clear the Government had set out a four-point approach to the automotive sector in a letter to Nissan’s chief executive Carlos Ghosn. But Mr Clark suggested to MPs he will not publish the letter due to the need to protect Nissan's commercially sensitive investment plans.

When pressed three times to “show us the letter” by Clive Lewis, the shadow Business Secretary, he responded: "You asked me whether I would publish the correspondence. I have set out the information that I gave them and I would just say this to you.”

He continued: "My responsibility, on behalf of the Government, is to encourage and to attract investment in this country and it's important that when companies of all types and in all sectors share with me their investment plans that are of information to their prospective competitors that they can be assured that they are not going to be disclosed to their competitors to their disadvantage.

"My objective is to obtain those investments but I'm very happy to answer today and to the select committee where I intend to appear at the invitation of the committee all of the aspects of it."

Mr Lewis also used the session to joke that the Business Secretary must have discovered “the Brexit equivalent of the philosopher’s stone”. He added: "Tariff-free market access with no concessions, readily agreed by all 27 EU countries, including Wallonia," he said.

"Surely that is a feat worth sharing?"

On Sunday the Business Secretary had revealed on live television it had told Nissan it would seek a tariff-free deal with the EU for the car sector in Britain. Another MP, referring to the disclosure, added: “He said to the BBC more than he’s said to the House today”.

The former Labour leader Ed Miliband also used the session to suggest that Theresa May’s position of not revealing her negotiating strategy for Brexit was at odds with the behind-the-scenes assurances provided to Nissan. “Can he [Mr Clark] explain how the two positions are consistent?” he added.

On Sunday the Shadow Chancellor had told The Independent the Nissan deal was evidence of Ms May and her Cabinet ministers pursuing a “make it up as they go along” strategy for Brexit.

“This means that it leaves more questions than answers and puts the UK economy in a position of being hostage to fortune rather than deciding its own destiny,” he added.

“It also means workers will be worrying this Christmas about their futures when they don’t have to be if the Government was straight with them. It’s time the Tories simply admit they had no plan for Brexit and consult others so we can finally get clarity rather than confusion from the Government.”

According to Vince Cable, a former Liberal Democrat business secretary under the coalition Government, the assurances provided to Nissan mean the UK will be staying in the EU customs union.

He told the Guardian: “The only way these big supply chain companies are going to commit themselves to Britain – and Nissan is the biggest – is that if they give them guarantees they are not going to be caught up in rules of origin problems, which is what happens if you leave the customs union.

“And if you stay in the customs union, which I think is what we’re talking about, what is the role of Dr Fox? Because it means you no longer have an independent trade policy.”

The Scottish National Party (SNP) had revealed earlier on Monday they have submitted a Freedom of Information request to to obtain Mr Clark’s correspondence with Nissan and said it was "completely unsustainable" for ministers to resist publication.

Richard Lochhead, a SNP member of the Scottish Parliament, said: "It is simply unacceptable that the UK Government is conducting backroom Brexit deals with multinational companies at the same time as they are keeping the public and devolved governments in the dark.

"People will naturally be relieved if jobs are being secured but other industries will now expect similar guarantees."

He added: "Sunderland voted overwhelmingly to leave Europe while Scotland voted decisively to remain - so if the Tories are only prepared to be flexible for places like Sunderland while ignoring Scotland's democratic voice, it would be an outrage."