SUPPLEMENTARY MEMORANDUM BY HER MAJESTY'S
TREASURY (DSW 116 (A))
At last month's hearing, you asked about Treasury
involvement in the proposed expansion of the Aylesford Newsprint
mill. Firstly, I should confirm that it is not the case that,
as you suggested at the hearing, proposals were turned down by
the Treasury because it did not have many employment opportunities.
I understand that Michael Meacher also said at your recent hearing
that the Treasury was not vetoing the project.
Jonathan Shaw, MP for Chatham and Aylesford,
wrote to the Chief Secretary late last year and to me in April
this year, expressing support for the project, and for Government
assistance. The Chief Secretary and I have both talked with Jonathan
about the project. Jonathan's letters enclosed the August 1999
study by PricewaterhouseCoopers, commissioned by the management
of Aylesford Newsprint Ltd.
In addition, support for Aylesford has been
an unsuccessful candidate from DETR for funding through the Capital
Modernisation Fund, although this largely reflects the fact that
the CMF is not intended to provide direct funding to the private
sector other than for direct public service delivery.
Stephen Timms MP