Coalition Question Mark Hangs Over Michelin Funds
The Stoke Sentinel reports that up to ₤3.9 million awarded to Michelin through the regional development agency Advantage West Midlands (AWM) may not head in the tyre maker’s direction if the new coalition government’s spending axe falls upon it. The Government says it will review spending projects reviewed upon after January 1 and decide if they represent value for money; Michelin’s intention, according to the Sentinel, was to use the awarded funds towards a ₤20 million modernisation plan for its Stoke-on-Trent site.
“The support that government gives to industry is necessarily indirect,” stated business secretary Vince Cable on May 20. “It’s not about pumping money into individual companies. That can’t happen – there isn’t the money to do it.” When asked by the Sentinel if grants approved by regional development agencies after January 1 will go ahead, Dr Cable replied: “I’m having a look at those.” He added that agency budgets would be cut and their structures changed – significantly, writes the Sentinel.
When Tyres & Accessories spoke to Michelin PR manager Paul Cordle, he pointed out that the grant was approved by the Department for Business Innovation and Skills, rather than Advantage West Midlands. He also noted that it was approved in 2009 and as a result Michelin expects it will not be affected by announced the funding cuts announced.
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