Denis MacShane slams Nick Clegg over Forgemasters comments

After the Government scrapped a loan for £80 million agreed by the previous Labour administration, the South Yorkshire engineering giant withdrew plans to build nuclear power station equipment.

Dr MacShane has asked Adrian Bailey, chair of the Commons’ select committee covering the Department of Business to hold a public inquiry into the role of Deputy Prime Minister, Nick Clegg, himself a Sheffield MP.

The MP wants an investigation into the decision to withdraw the loan and the allegations Mr Clegg made about share holding and dealings of the Sheffield Forgemasters CEO, Graham Honeyman.

“Clegg’s disgraceful allegations about Graham Honeyman sent shock waves through the markets and made it all but impossible for Forgemasters to raise money from private sources,” Dr MacShane said.

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“David Cameron has also repeated Clegg’s slur about Mr Honeyman’s shareholdings and should be required to give evidence to the Commons’ Select Committee.

“Graham Honeyman was forced to defend himself and it is without precedent for a senior government minister, let alone the deputy prime minister, to seek to blacken the name of a respected business leader in this way.

“Nick Clegg and Vince Cable have now offered an early Christmas present to Korean, US and French engineering firms who with their government’s support will now fill the orders from the UK nuclear industry for new kit.

“This is the first salvo of a Tory Lib-Dem attack on South Yorkshire engineering reminiscent of what Mrs Thatcher did to South Yorkshire's industrial base a quarter of a century ago.”

Mr Clegg this week said he respected Forgemasters’ decision to pause development of its 15,000-tonne press project.

Mr Clegg said: “Labour's cynical promise of a loan it knew it couldn't afford has created a highly politicised atmosphere, which the company has understandably found difficult to work in. 

“I am grateful company directors have kept the door open on this project and the Government stands ready to offer what assistance it can when Forgemasters is ready.”

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