Select Committee Inquiry - Automotive Assistance
Programme (UK)
From: Business and Enterprise
Committee
Date announced: 24 March
2009
Evidence due: 8 May
2009
Semta evidence submitted: 8 May
2009
Report published: 17 July 2009
Summary
The Department for Business,
Enterprise and Regulatory Reform launched the Automotive Assistance
Programme on 27 January 2009. The scheme is open to projects
of over £5m from UK based car and car component manufacturers with
an annual turnover of £25m plus, and is intended to free up lending
of more than £2b over two years to ensure that major UK based
low-carbon investment projects are not abandoned or relocated.
The Committee would be interested to
hear views on:
- the definition of ‘eligible
companies’
- the application criteria for the
types of projects that are covered by the AAP, including the focus
on low-carbon projects
- whether the £5m threshold excludes
too many SMEs?
- the criteria used for awarding loans/
loans guarantees, and how this compares with the criteria used by
the EIB
- the degree to which the award of
support through this scheme has prevented, or is likely to prevent,
companies from abandoning projects or moving them out of the
UK
- whether other measures, such as
scrappage or support for car finance companies, are
required
- any other views stakeholders think
the Committee should be aware of
Next steps
Semta submitted evidence based on its employer
engagement with automotive and automotive supply chain
companies. While welcoming the funding, it is clear that many
innovative companies are excluded, and we called for the programme
to be integrated into the wider efforts to secure a low carbon
economy for the UK.
The report from the Committee endorsed this view and called for
the loan guarante threshold for the AAP to be reduced to
£1million as soon as possible.
Documents and Links
Government response to the Committee
Report
Semta briefing on
the report
Report from the Committee
Semta
submission
BE Committee press notice on the
inquiry
Semta represents the view of our employers across government and
the media. If you are an employer in the science,
engineering, or manufacturing technology sectors, we welcome your
views at policy@semta.org.uk
27 June 2010