Nissan warns Government as grant is axed

Nov 9 2010 by William Green, The Journal

CAR giant Nissan has challenged coalition ministers to show they are serious about the North East's economy after they axed a key fund that has brought thousands of jobs to the region.

The message from the car manufacturer has come as the Government slashes funding to support regional development, including the abolition of the Grant for Business Investment (GBI) that helped firms to expand.

Wearside-based Nissan said the GBI scheme was essential to “rebalance” the UK economy after ministers said they wanted to boost manufacturing and move away from a dependence on the City of London.

Firms in the North East were handed more than £50m under the GBI programme, helping them expand and create thousands of jobs over the past two years.

Nissan was given a £20.7m GBI award to help it build its Leaf electric car and batteries in Washington – and the company underlined the importance of the scheme by declaring the UK was becoming a global green industry leader.

The coalition now had a choice to fight for business to come to the UK or let them go abroad, said Nissan.

The company said: “Such investment within the UK regions via GBI will be more crucial than ever if the UK is serious about rebalancing the economy.

“Relatively modest investment through GBI has the capacity to attract inward investment which in turn creates jobs in high skilled manufacturing and attracts further inward investment into the economy.

“In short, it can be the catalyst to create a virtuous circle of investment into the UK.

“Foreign governments are competing to maintain their manufacturing bases that have a capacity to export their way out of challenging economic times.

“The UK has a clear choice of whether it chooses to fight for new business, new jobs, and rebalance the economy or allow the opportunity of this business to go elsewhere.

“As the UK arm of Nissan, we hope that the coalition Government seizes this opportunity with both hands.”