Cable Ties Noose on Car Industry Aid

UK coalition government business secretary Vince Cable has ruled out further publically financed direct support for the UK car industry. Additionally he cast doubt on plans made by the previous Labour government that would have subsidised early purchases of low-emission vehicles in 2011. Cable told London’s Financial Times on 29 June, “We don’t want to go around the country waving a cheque book.”

Cable’s further comments reflect the general reduction in the use of public money – or at least money borrowed by the state – implemented by the Conservative-Liberal Democrat coalition following its rise to power in May this year. “We’re moving away out of an emergency time, and support will come in more indirect ways,” Cable continued in the report by John Reed and George Parker, suggesting that projects such as the proposed production of the Opel/Vauxhall Ampera in the firm’s Ellesmere Port factory “should not depend on government support.”

The report concludes that while Cable is “not closing the door to conversations” on companies approaching the UK government for assistance, direct support is unlikely to be forthcoming and decisions on the manner of publically funded subsidisation for low-carbon vehicle projects remain in the balance.