Business Secretary Greg Clark today denied using a “cheque book” to clinch a deal for Nissan to boost production at its giant car plant in Britain.
The Cabinet minister said he had instead given the car company’s bosses reassurance that they could have “confidence” investing in the UK as it heads towards Brexit.
The Japanese firm announced yesterday that it would build its next-generation Qashqai, and add production of the new X-Trail model, at its Sunderland factory, securing 7,000 jobs.
With Labour demanding the Government comes clean over any “secret deals”, Mr Clark insisted no financial favours were offered.
“There’s no cheque book. I don’t have a cheque book,” he told BBC Question Time.
“The important thing is that they know this is a country in which they can have confidence they can invest. That was the assurance and the understanding they had, and they have invested their money.”
Pressed on reports that Nissan was given written reassurances, suggesting possible compensation for any future EU tariffs, Mr Clark said: “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.”
Colin Lawther, Nissan’s senior vice president for manufacturing in Europe, also denied there was a special deal for the company.
“No, there is no offer of exchange,” he said. “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.”
Nissan boss Carlos Ghosn said the manufacturer could make the decision due to “support and assurances” from the Government.
Former Prime Minister Tony Blair backed the moves to keep investment in the UK after the shock June 23 vote. “I know the leadership at Nissan, I’m absolutely sure they would not have made this commitment unless they received very strong assurances from the UK government,” he said.
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“I should imagine they gave strong assurances about the car industry’s access to the single market. If this is an indication that the UK government are giving strong assurances about access to the single market, this would be important.”
He also believes all “options”, including a second referendum, should be kept open to ensure the British people back — or don’t — the reality of Brexit once an exit deal is negotiated.
Iain Wright, Labour chairman of the Commons Business Committee, said he would summon Mr Clark to face a grilling on whether any special deal was offered.
Labour leader Jeremy Corbyn warned: “If you are offering big inducements to one industry or one manufacturer, then all the others will quite reasonably say ‘Well, what about us?’”
Liberal Democrat leader Tim Farron welcomed the investment but said it was “utterly ridiculous” that Prime Minister Theresa May was having to give “special assurances” to key manufacturers to deal with the “Brexit fallout her Government is creating”.
