§ Mrs. Renée Shortasked the Secretary of State for Trade and Industry how much public funds in total will be given to Nissan if it sets up a car assembly plant in the United Kingdom.
§ Mr. Norman LamontI refer the hon. Member to my reply of 6 February to the right hon. Member for Swansea, West (Mr. Williams)—[Vol. 53, c.427.]—which dealt with Government assistance for phase II of the Nissan project. Phase I, during which Nissan plans to assemble cars based on imported kits, has estimated capital costs of some £50 million. These will similarly attract regional development grant at 15 per cent. or 22 per cent. of 597W eligible expenditure, depending on location. Selective financial assistance has not been offered in respect of phase I. Taking the estimated capital costs of phase I and phase II together of some £350 million, total Government assistance including SFA would therefore be up to some £88 million in a development area, or up to some £112 million in a special development area, depending on eligibility.