Saturday, July 14, 2007
Gov't aid to Vauxhall under investigation
THE EUROPEAN Commission is to investigate whether Britain's plan to give £8.5m to a Vauxhall Ellesmere Port plant breaks EU state aid rules.
The government cash will subsidise a training program for some 2,200 people who will work in the plant between 2007 and 2012.
"The Commission has doubts whether the aid would add value to the training program, in that Vauxhall may well have carried out the training even without aid," the European Union executive said.
EU rules only allow state aid which provides a genuine incentive for additional training.
The Commission has authority over any financial government help given to companies and can prohibit such state aid.
DATED: 14.07.07
FEED: AW
The government cash will subsidise a training program for some 2,200 people who will work in the plant between 2007 and 2012.
"The Commission has doubts whether the aid would add value to the training program, in that Vauxhall may well have carried out the training even without aid," the European Union executive said.
EU rules only allow state aid which provides a genuine incentive for additional training.
The Commission has authority over any financial government help given to companies and can prohibit such state aid.
DATED: 14.07.07
FEED: AW
