A MULTI-MILLION pound grant to help provide training at the Ellesmere Port Vauxhall car plant has finally been given the seal of approval after a European Commission investigation.

On July 10, 2007, the Commission opened an in-depth investigation into the £8.7m grant over concerns it could break European rules about state aid to the private sector.

In particular, the Commission was concerned that some training might have been carried out anyway as part of the plant's normal operations.

According to EU rules, only state aid which provides a genuine incentive for additional training is allowed.

The Commission also had concerns that part of the training would be specific to Vauxhall, and could not be used in other firms or sectors.

But yesterday EU Competition Commissioner Neelie Kroes gave the grant her approval.

She said: “Our investigation has shown that the aid will add real value to Vauxhall’s ambitious training programme.

“I am pleased to approve aid which will make a genuine contribution to the skills and competitiveness of European car workers.”

She said the Commission’s investigation had established that the aid will be used for additional training and will not simply subsidise training that Vauxhall would have provided in any case.

Vauxhall Motors, which belongs to the General Motors group, employs about 2,200 staff at its Ellesmere Port site.

The company has developed a comprehensive staff training programme for the years 2007-2012.

As required under EU state aid rules, the UK informed the Commission in February, 2007, that it planned to subsidise Vauxhall's training programme with an £8.7m grant.

The EU has strict rules forbidding the use of public money to subsidise commercial activity where it might distort free competition.

All state aids to EU industries have to be vetted by Brussels in case of clashes with the rules designed to stop governments pouring cash into companies to keep them afloat – and keep European rivals at bay.

The in-depth investigation allowed the Commission to verify that the subsidised training goes beyond the basic training necessary for Vauxhall’s operations.

The programme will provide the trainees with transferable skills that could be used elsewhere and with other employers.

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