Fleet News

Commons row over subsidies

A ROW has broken out in the House of Commons over Government demands for vehicles to be used less while simultaneously handing out millions of pounds in cash to manufacturers to boost their competitiveness. And in the same debate Minister for Science, Energy and Industry John Battle said Government calls for vehicles to be powered by more environmentally-friendly fuels was not at odds with calls for a reduction in vehicle use.

Conservative MP for Buckingham John Bercow asked the minister to explain the rationale between the Government policies of 'encouraging people to abandon their cars and use public transport' and 'handing out large subsidies to car manufacturers in an attempt to boost their competitiveness'.

Recently LDV and Daewoo, and Ford at its Halewood plant, have been among manufacturers to benefit from subsidies. Battle said: 'I do not think that improving the environment ought to be set at odds with vehicle use. The two are not, and will not be, at odds under this Government.'

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