Written question asked by Lindsay Hoyle (Labour) on Thursday, 22 June 2006, in the House of Commons. It was due for an answer on Wednesday, 28 June 2006. It was answered by Baroness Hodge of Barking (Labour) on Monday, 3 July 2006 on behalf of the Department of Trade and Industry.

Car Companies (Government Support)

Question: To ask the Secretary of State for Trade and Industry what the (a) dates and (b) amounts were of each (i) grant and (ii) loan offered to Peugeot by the Government in each of the last 10 years; and what terms and conditions were attached.

Answer: [holding answer 28 June 2006]: In 1998, Peugeot was offered a RSA grant of £2 million towards the cost of investment to add a third shift at a time of strong demand for their 206 model. In November 2004, a further grant of £14.4 million was offered to Peugeot for manufacture of the 207 at Ryton, but the project did not proceed.The terms and conditions of the grants are confidential between the Government and Peugeot.No loans have been offered to the company.

Secondary information