DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/44)
issued by COI News Distribution Service. 27 February 2009
The UK has been
given the go ahead by the European Commission (EC) to offer state
help for the automotive industry under the Automotive Assistance Programme.
The approval by the EC enables the government to support up to £1
billion of loans and loan guarantees as well as loan guarantees
through the European Investment Bank (EIB) enabling funding of up
to £1.3 billion.
Business minister Ian Pearson said: "We are grateful to the
Commission for its swift response and approval of our state aid
application. We welcome applications for the Automotive Assistance
Programme that's now up and running just one month after
announcing our support package for the automotive industry.
"We are committed to helping the car industry bridge to the
low carbon future. Our package will support both manufacturers and
larger automotive suppliers in delivering the new investment that
will be vital in ensuring the industry comes out of the current
downturn with the skills and technology needed to be competitive
in the global automotive market."
BERR will be holding a seminar in the next couple of weeks to
bring together industry, banks and the relevant trade bodies to
make sure that the Automotive Assistance Programme application
process runs as smoothly and effectively as possible.
Notes to editors:
1. The Government is now able to move forward to implement the
automotive industry support package announced by Lord Mandelson on
27 January 2008 aimed at freeing up lending of £2.3 bn for the
automotive industry. The Commission's decision to approve
the UK's state aid proposals enables the Government to
provide guarantees to unlock loans of up to £1.3bn from the
European Investment Bank for investment in lower carbon
initiatives, and also to provide guarantees to support up to £1bn
of lending for lower carbon initiatives for non-EIB backed
projects. Where appropriate, occasionally direct loans may be
considered. The scheme will be administered by BERR and the
Department will be publishing guidance and application criteria
for companies shortly.
2. Companies can register an interest by emailing BERR at berr.auto@berr.gsi.gov.uk.