Probe into Nissan Deal requested by MP

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02 Dec, 2016

Probe into Nissan Deal requested by MP

Whitehall’s expenditure watchdog may examine the deal to keep Nissan making cars in north-east England, following a request from the chair of a respected parliamentary committee.

Chair of the Treasury select committee, Andrew Tyrie has sent a letter to the National Audit Office (NAO) asking for an inquiry to be made regarding any assurances offered by the government to the Japanese car giant.

This follows a refusal by the chancellor, Philip Hammond, to say how much the pledges made to Nissan would add to the public finances and will exert further pressure on the government to divulge details of any deal not currently known.

In a written letter to Sir Amyas Morse on Thursday, Tyrie asked for auditors to find out whether or not taxpayer money would be exploited.

“The chancellor has not answered the crucial question: whether an assurance was given to Nissan which could constitute a contingent liability, or support consistent with the provisions of the Industrial Development Act 1982.”

He added, “So I have written to Sir Amyas, asking him to examine whether contingent liabilities have arisen as a result of government commitments, and/or assurances made to Nissan.”

This comes as Nissan moved to extend its production of two new vehicles in Sunderland amid rising speculation that it could leave the UK following the country’s decision to quit the European Union.

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