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Monday, 23 July 2007 |
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Vauxhall's Ellesmere Port car plant is being investigated by the European Commission over an £8.5m government grant to assist with staff training.
The Commission is concerned the grant may break European rules about state aid to the private sector as there are doubts it adds value to the training programme.
The European Union executive said: "The Commission has doubts whether the aid would add value to the training programme. Vauxhall may well have carried out the training even without aid."
Competition commissioner Neelie Kroes announced that a full inquiry was being launched: “The Commission supports training which improves the skills of the workforce. However, we must make sure that the public funds do not just provide windfall profits to companies that would have paid for the training as part of their normal business.”
The EU has strict rules forbidding the use of public money to subsidise commercial activity where it might distort free competition.
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