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The Secretary of State for Business promised Nissan in 2016 that he would not be "affected" by the Brexit, in a confidential letter published after the automaker abandoned its plans to produce a new model at Sunderland.
Greg Clark told Carlos Ghosn, then CEO of Nissan, that the UK government would do "everything possible" to help, and pledged undisclosed financial support worth £ 61 million for the making of the X -Trail in the United Kingdom.
"The government fully recognizes the importance of the EU market for your presence in Sunderland," Clark said in a four-page letter dated October 2016.
"Our negotiations will have as a key priority to support British car manufacturers and to ensure that their future export to the EU is not affected by the UK's future relations with the EU."
Clark's promise can not be held because no agreement on Brexit has been reached with the European Union and the government has not ruled out leaving without agreement on March 29.
The letter gave no specific badurance as to the UK's future Brexit policy, although it was intended to rebadure Ghosn in general. He acknowledges his concern about the impact of changes in the terms of the exchange.
"We will continue to do everything in our power to make investment the easiest and most rewarding possible for Nissan," Clark wrote.
"I understand, of course, your concern about uncertainties as the UK prepares to leave the EU. In particular, you are concerned that potential future trade agreements will affect the business case for your investments. "
Over the weekend, Nissan announced that it would no longer manufacture the new SUV X-Trail model in Sunderland, putting an end to its expansion. The company said that "lingering uncertainty" about the Brexit was one of the factors behind its decision.
The letter, which the government had repeatedly refused to release, promised financial support for Nissan's investment in the site, in return for an expansion of production.
The grants, worth £ 61 million, were finally awarded in June 2018, said Clark in a second letter to Rachel Reeves, chair of the selection committee, on Monday, in which he formally communicated the correspondence. .
Nicky Morgan, chairman of the Treasury's restricted committee, complained that he had not informed MPs that financial badistance had been offered to Nissan. She asked why her predecessor, Andrew Tyrie, had not been informed of this offer while badurances had been provided to Nissan in 2016.
Morgan said, "If the government provided Nissan with financial badistance to persuade it to stay in Sunderland, it should spell out what that support was and why it did not reveal it to my predecessor."
According to sources from the Department for Business, Clark would be unhappy with information released Monday morning that the package could be discarded because it no longer wants to upset Nissan.
The minister has repeatedly warned of the dangers of a Brexit without agreement and wants the government to expel it quickly if the parliament fails to agree on a agreement with the European Union.
Nissan said in a statement that the letter showed both the company's and the government's desire to support investment in the UK and keep Sunderland one of Nissan's manufacturing centers in Europe. The letter is no longer commercially sensitive because it contains nothing that has not been publicly disclosed before, and the projects referenced in the letter have now changed. "
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