Union calls for probe into Twinings grant (From Basingstoke Gazette)

Union calls for probe into Twinings grant

2:30pm Friday 30th July 2010 in

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CAMPAIGNERS trying to save Twinings jobs in Andover are calling for an investigation into grants that Twinings is set to receive for establishing a factory in Poland.

Andover Trade Union Council has written to Business Secretary Vince Cable, Europe Minister David Lidington and Andover MP George Young seeking assurances that the money will not be subsidising plans to move some production to Poland.

The call comes after it emerged that the European Union Commission is seeking ‘formal guarantees’ from the Polish government that Twinings is not using EU grant funding to relocate, rather than invest in new operations. The EU Commission has confirmed – following an enquiry from former Green Party MEP Caroline Lucas – that Twinings’ Polish subsidiary has sought funding for a new £38m plant in Swardedz through a European regional development fund, and that it has been earmarked for more than £8m in grants from EU and Polish funds.

A spokesman for Twinings said: “Our business case for setting up a new factory in Poland was not based on receiving any external funding. Following the selection of a suitable location for the factory in Swarzedz, Poznan, we applied, through our legal entity in Poland, to the Polish Ministry for a grant under the Operational Programme, Innovative Economy, measure 4.5.1 (OPIE).

“The application was made because Twinings considered that the business plans satisfied the relevant criteria. However, the decision on eligibility is determined by the Polish authorities.

“The OPIE grant would provide financial support for Twinings’ investment in the latest technology and in research and development.

“The initial confirmation of the OPIE grant was received on 1st April 2010 – however, no formal agreement has been finalised.”

But Andover TUC secretary Derek Kotz said: “Whatever way you look at it, if Twinings gets £8m in EU grants for its new plant in Poland, Twinings workers in Andover and South Shields will have paid to sack themselves.

“The rules are quite clear that grants are available for new investment, but not for relocation, and Twinings is quite clearly relocating, at the cost of 129 jobs in Andover and more than 260 in North Shields.”