Nissan hopeful its Leaf will not be blown away

May 25 2010 by William Green, The Journal

NISSAN bosses have said they are hopeful a £20m jobs grant will go ahead despite a Government review.

Former Business Secretary Lord Mandelson announced the grant to support production of Nissan’s Leaf electric car and new battery plant in Sunderland in March.

The Department for Business (BIS) has confirmed the grant is under review as with all spending decisions made by Labour since January – despite thousands of jobs hanging in the balance.

Development agency One North East faces cuts, although Business Secretary Vince Cable has spoken about protecting funding in the North.

Kevan Jones, Labour MP for North Durham, said: “To try and give the impression that this is all about efficiency savings is disingenuous and to attack the future of the green industries in our region like this is both short-sighted and reckless.”

A Nissan spokeswoman said: “An agreement was made and signed between BIS and Nissan. We believe that the new coalition Government is fully supportive of progressing a greener economy and zero emissions transport is at the heart of this.”

James Ramsbotham, chief Executive of the North East Chamber of Commerce welcomed “swift action” to tackle the deficit but warned “difficult” decisions had only just begun and stressed the need to support the fragile economic recovery.

Alan Clarke, One North East Chief Executive, said RDAs had been asked to find £270m cuts and a further £23m in administration costs this year.

“Clearly this is a challenge but it is one we will meet,” he said.