Oral Answers to Questions

Kevin Brennan Excerpts

Wednesday 8th September 2010 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

Q10. The Deputy Prime Minister is famous for his humility. Following the report of the Select Committee and this morning’s report in the Financial Times, is he now prepared to apologise for the mistake that he made about Sheffield Forgemasters and to join the Liberal leader of Sheffield council in calling for some public finance for that project?

[The Deputy Prime Minister]

As the hon. Gentleman knows, the reason, regrettably, why the £80 million loan that was announced by the previous Government 11 working days before the general election to coincide with a nice photo opportunity for the previous Prime Minister at Forgemasters has not been able to proceed from this year’s Budget is that it is not affordable under this year’s Budget given that the structural deficit we inherited was so much greater than we thought. In other words, it was a promise made where the money was not available. It was a cheque written which the previous Government knew would bounce, but we have made it very clear to Forgemasters that we will continue to work with it to see how we can support it in future once the Budget situation becomes clearer after the comprehensive spending round.