News Release issued by
the COI News Distribution Service on 21 September 2009
Government is
doing all it can to support the car industry helping it to adapt
and survive so it can emerge stronger and better able to deal with
future challenges, Business Minister Ian Lucas said today.
Mr Lucas made the comments as he published the Department for
Business Innovation and Skills (BIS) response to the Business
& Enterprise Select Committee’s report, ‘The Automotive
Industry in the UK’.
Government has already taken substantial action to support the UK
car industry and last week made the first loan from the Automotive
Assistance Programme (AAP). Tata Motors TMETC has been given a £10
million loan to support the development and manufacture of
electric vehicles in the UK.
Business Minister Ian Lucas said:
“These are tough times for the car industry and because it is one
of the key sectors of our economy we must support it now and in
the future.
“We have acted to support it in the short term through £300m
support for the scrappage scheme, so far helping over 200,000
people to order a car now instead of waiting, and I have heard
direct from the industry that it has benefitted enormously from
the scheme.
“Our assistance does not stop there. It’s not just about what we
can do in the short term. We must invest in the future. That’s why
in addition to the AAP, we are helping the car industry to take
advantage of the opportunities that moving to low carbon present.
We have already set aside £250 million for consumer incentives and
infrastructure and we will continue to support low carbon car
development.”
Ministers continue to consider a number of other bids for
assistance from the programme’s budget to help the industry meet
consumer demand, protect it from the down turn and help it to
become a world leader in low carbon cars. There are already on
going negotiations with companies to fund projects with a total
value of £2bn. The Government is also considering applications to
the scheme that are below the £5m project limit in order to extend
support to smaller companies in the supply chain.
Notes to Editors
1. To view a copy of the Government’s response to the BERR Select
Committee’s report ‘The Automotive Industry in the UK’, please go
to www.bis.gov.uk/aap
2. The Automotive Assistance Programme (AAP) is the Government’s
long-term reinvestment of the automotive industry through a
support package. It provides loan guarantees (or, exceptionally,
loans) to the UK automotive sector.
3. The AAP aims to unlock a total bank and EIB support package of
up to £2.3bn to provide support for automotive companies as they
invest to create or sustain jobs, develop cutting-edge technology,
bring special value to the UK, maintain R&D in UK vehicle
manufacturing and support the development of green technologies.
For further details please go to www.bis.gov.uk/aap
4. The Business & Enterprise Select Committee launched
their inquiry into AAP on 25 March, and published their
recommendations on 17 July.
5. The Government announced its strategy for Ultra Low Carbon
Vehicles in the UK in March 2009, including £250m for consumer
incentives and infrastructure.
Department for Business, Innovation &
Skills
The Department for Business, Innovation band Skills (BIS) is
building a dynamic and competitive UK economy by: creating the
conditions for business success; promoting innovation, enterprise
and science; and giving everyone the skills and opportunities to
succeed. To achieve this it will foster world-class universities
and promote an open global economy. BIS - Investing in our future.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joshua Coe
Phone: 020 7215 5943
Joshua.Coe@bis.gsi.gov.uk