Anger follows £32m pledge to Westland

LABOUR MPs have reacted angrily to the revelations a helicopter factory in a Liberal Democrat constituency in the south west has been pledged £32m of funding despite an £80m loan to Sheffield Forgemasters being axed as "unaffordable".
By The Newsroom
Published 11th Nov 2010, 11:17 BST
Updated 11th Nov 2010, 11:17 BST

Deputy Prime Minister Nick Clegg was forced to defend the decision yesterday amid anger at the deal for the AgustaWestland plant in the Yeovil constituency of Lib Dem MP David Laws.

Ministers have repeatedly insisted the Forgemasters deal could not be honoured given the massive budget deficit – despite Business Secretary Vince Cable admitting it would have brought in three times as many benefits as it cost – raising questions over how the Westland deal has been given the go-ahead.

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In the Commons, Newcastle Central MP Chi Onwurah said: "AgustaWestland is an excellent company providing skilled manufacturing jobs in Yeovil. Sheffield Forgemasters is also an excellent company, providing skilled manufacturing jobs in Yorkshire. Why did the Government decide to support one and not the other?"

Mr Clegg said both were "outstanding" companies but added: "The difference is that the announcement of the decision to provide a loan to Sheffield Forgemasters was made 11 days before the general election, when there was no money in this year's budget to make that promise."

Related topics:MPsLiberal Democrat