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Brexit
Original poster

Nissan sweetener - WTF

38 replies

Bearbehind · 05/02/2019 08:30

Have I got this right:-

  • TM visits Nissan after the referendum in 2016 to talk Nissan into building the X-trail in Sunderland
  • Nissan subsequently confirm the build and the government categorically states they did not offer them a bung to do so
  • come 2019 Nissan said it’s changed it’s mine, partially to do with Brexit and now won’t build the X-trail here
  • ministers announce they think Nissan shouldn’t receive the £60m bung they were offered
  • ministers then realise they hadn’t told anyone about the bung so now look pretty fucking stupid.

Is that the mist of it?

Why on earth does anyone have any faith in this process?

OP posts:
OhYouBadBadKitten · 05/02/2019 08:37

That sounds about right.
How many other companies have been paid off? Just how much has Brexit cost the taxpayer so far?

AutumnCrow · 05/02/2019 08:40

I imagine there's a few FoI requests going in from the press ...

MillytantForceit · 05/02/2019 10:17

Secretary of State, It's Toyota, Ford, Honda and GM on the phone.

They'd like a word.

Puggles123 · 05/02/2019 10:27

EU and Airbus anyone? This type of thing isn’t unusual, whether it’s right or not is another matter! I’m firmly remain by the way, so not a statement on Brexit tbh.

StealthPolarBear · 05/02/2019 10:31

Thank you for the summary op I have been trying to work out what all this meant. Very helpful.

BorisBogtrotter · 05/02/2019 10:45

I wonder whether this would be allowed under WTO rules... nope!

Rumboogie · 05/02/2019 10:49

Govt now say this bung was linked to developing electric cars - but are Nissan planning any?

Rumboogie · 05/02/2019 10:51

At Sunderland, that is.

Xiaoxiong · 05/02/2019 10:57

Yes I think they build the Nissan Leaf in Sunderland already.

Puggles123 · 05/02/2019 11:08

There are loads of articles from 2016 about it anyway, and can read all about it. WTO have also ruled against the EU for loads of ‘sweetners’; welcome to business in the 21st century.

BorisBogtrotter · 05/02/2019 11:30

The new leaf is being built at Sunderland.

But "new" isn't exactly true, its essentially an upgrade on the last model, the future cars will be built from 2023 on ward and will require a whole load of extra investment.

To put a finer point on it, the initial Leaf lines cost £430 million to build and invest in.

To upgrade to the new leaf in 2017 they invested £34 million.

The next round would be the same as the initial.

lalalonglegs · 05/02/2019 11:35

We keep hearing about the NDAs that many companies have signed and I (naively) couldn't work out what leverage the government had over these firms to keep them quiet. It seems they bought their silence - simple. Imagine how much money has been spent on trying to suppress the fact that, from the outset, the people implementing this policy knew that it was going to be a disaster.

Original poster
Bearbehind · 05/02/2019 12:23

Govt now say this bung was linked to developing electric cars

They are just tying themselves up in knots with all the lies now.

If that was true, the X-trail not being built in Sunderland would have nothing to do with the £60m they are now discussing,

OP posts:
MattFreisWeatherReport · 05/02/2019 12:55

DUP, Nissan, Labour MPs in deprived areas... I'm beginning to think I'm the only person who hasn't had a nice windfall from Theresa. Sad

TheCounter · 05/02/2019 13:30

What's unusual about government grants to attract investment?
It's been going on for decades.

MattFreisWeatherReport · 05/02/2019 14:04

Actually, yes, that's true. In my own benign dictatorship, in fact, I have frequently offered the children grants of biscuits in exchange for an agreement to invest good behaviour into the household. And told them not to tell.

TheCounter · 05/02/2019 14:25

It's not a case of not telling.
The grant had obviously not been confirmed yet. Hence the requirement to renew their application.
Did you expect a running commentary on the process?
Like any other government funding, it would be be made public once they knew the details of the legally binding arrangement

Original poster
Bearbehind · 05/02/2019 14:27

There’s a difference between not disclosing and outright denying it has happened - that’s the issue here. It’s not transparent.

OP posts:
jasjas1973 · 05/02/2019 14:30

What's unusual about government grants to attract investment?
It's been going on for decades

According to leavers, being barred by the EU to support british industry is why we've so little UK manufacturing left.
(though we are still 9th in the world for exporting goods)

Not now telling us that isn't the case???? well, who knew!

BorisBogtrotter · 05/02/2019 14:59

"Did you expect a running commentary on the process?"

Well we got a running commentary on the investment plans as a sign of Brexit success, why not on the reasons determining the investment?

TheCounter · 05/02/2019 15:42

"According to leavers, being barred by the EU to support british industry is why we've so little UK manufacturing left.
(though we are still 9th in the world for exporting goods)"

Leavers? Like someone on an internet forum?

Incentives have always been an option for inward investment.

I don't think anyone of note has ever suggested that the EU have ever tried to curtail that option.

BorisBogtrotter · 05/02/2019 15:48

Lots of people here have suggested that, in many posts.

MorningRichie · 05/02/2019 15:57

I work in the motor trade and live in the NE so have some understanding of the situation. It's wonderful news that those who voted out are getting exactly what they wanted and deserve. I am hugely sorry for those who voted remain and have their jobs under threat through the fault of racist imbeciles.

bubblewire · 05/02/2019 16:00

There are rules on State Aid, maybe that's what Leavers mean by "being barred by the EU to support british industry"

ec.europa.eu/competition/state_aid/overview/index_en.html

BorisBogtrotter · 05/02/2019 16:04

The rules on state aid are pretty much the same as WTO schedules.