HC Deb 14 December 1999 vol 341 c113W
Dr. Cable

To ask the Secretary of State for Trade and Industry if he will make a statement on the European Commission's response to the proposal for state aid to Rover; and if a revised proposal is being considered. [102204]

Mr. Alan Johnson

[holding answer 13 December 1999]: The UK officially notified its intention to provide aid for Longbridge at the end of August 1999. A number of questions were raised by the European Commission and these questions have been fully answered. We now anticipate that the Commission may open an Article 88(2) procedure on this case. An announcement is expected shortly. Such a procedure is normal practice and allows the European Commission to consider the views of third parties. We remain hopeful of a positive outcome to the investigation.

We are not considering a revised proposal.

Dr. Cable

To ask the Secretary of State for Trade and Industry what is his latest estimate of the cost of the proposed state aid to Rover. [102205]

Mr. Alan Johnson

[holding answer 13 December 1999]: The offer of aid to Rover/BMW remains the same as that announced by the Secretary of State on 23 June 1999: a support package of £152 million, made up of £129 million Regional Selective Assistance (RSA), with the balance being made up by the local partners. The offer remains subject to clearance by the European Union.

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