Government insists no ‘secret deals’ were done to convince Nissan to expand business in Britain

NO CHEQUEBOOK was used to tempt Nissan to build its new Qashqai car in Sunderland, vows Business Secretary Greg Clark.

Labour is demanding the Government reveals details of any “secret deal” with the car giant – amid reports the firm would be compensated if the EU imposed a post-Brexit tariff barrier against British imports.

Downing Street has said there has been communication with Nissan in “all forms” but said there was “no compensation package” and “nothing about tariffs”.

And on BBC’s Question Time show Mr Clark said: “There's no chequebook. I don't have a chequebook.

"The important thing is that they know this is a country in which they can have confidence they can invest.
“That was the assurance and the understanding they had, and they have invested their money."

He was pressed about whether written assurances on compensation for any future EU tariffs had been given and said: "We have had, obviously, as you might imagine, lots of communication between us, but actually what it rests on is a very strong mutual confidence."

The Japanese giant's decision to build its next-generation Qashqai, and add production of the new X-Trail model, at its Sunderland plant was seized on by Theresa May as proof that the UK was an attractive investment hub despite the flux caused by the Brexit vote.

Colin Lawther, Nissan's senior vice president for manufacturing in Europe, denied there was a special deal for the company.

He said: “There's nothing, there's no special deal for Nissan. We are working within the whole of the automotive industry.

“We would expect nothing for us that the rest of the industry wouldn't be able to have access to."

The official announcement came after the Sun revealed last week the decision was fast-tracked by bosses following a visit to Japan by Mr Clark.

But there is suspicion amongst the Opposition about how the deal was done.

Shadow Chancellor John McDonnell warned that "secret deals behind closed doors" would damage business confidence in the UK.

"It's utterly chaotic at the moment. We have got a situation where we get leaks and rumours.

“Are they now going to decide, literally, factory by factory the support they are going to give?";

Labour leader Jeremy Corbyn said: "It must be made public, because it is public money that will be used if there are any inducements that have been offered and, quite obviously, if you are offering big inducements to one industry or one manufacturer, then all the others will quite reasonably say 'Well, what about us?'"

Liberal Democrat leader Tim Farron welcomed the investment news but said it was "utterly ridiculous" that Mrs May was having to give "special assurances" to key manufacturers to deal with the "Brexit fallout her Government is creating".

And former Labour PM Tony Blair told BBC Radio 4’s Today Programme that he thinks the Government must have given Nissan “very strong assurances” about the car industry’s access to the single market.