LONDON - Europe's top plane maker, Airbus is quietly confident that the government would grant a £379 million loan to the company within the next few days.
This confidence stems from the fact that Britain stands to lose out on vital manufacturing jobs as well as technology if the loan application were to be rejected. Airbus is on the verge of launching its new mid-size Airbus A350 plane in the next few weeks and it is generally accepted that the Department of Trade and Industry will grant the loan by then.
The Sunday Times reported that only the terms of the deal need to be finalized before it is formally announced. But a spokesman for the DTI said that there was to be no imminent announcement, "We are still in negotiations. There are still many things under discussion."
However, DTI minister Alan Johnson had almost given his nod for the deal at last week's TUC conference, "The Government completely understands the importance of the new Airbus A350 project which will require investment … so that Britain can maintain its lead in wing construction and design," he had told the delegates. An Airbus spokesman commented, "That is more positive than anything we have heard before from a government minister. If we don't get involved now in composite technology, we could be left behind."
At stake are 10,000 jobs in the manufacturing sector and it is unlikely that the government would risk losing them. Most jobs are in the wing construction segment. All wings for Airbus planes are manufactured in Broughton, north Wales. The local government here is desperate for the jobs, "I am absolutely delighted for Airbus.
If this is confirmed it shows the government have shown a common sense approach to the situation. It is important to dispel the myth that this is a grant. It is a loan which is a damned good deal for the taxpayer," said Flintshire council leader Alex Aldridge when asked about the importance of the deal.
Posted
on : Mon, 19 Sep 2005 19:05 GMT | Loans News
By : Mike Lawson
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