TRADE and industry secretary, Stephen Byers, yesterday warned business leaders of the "dangers posed to UK investment" by the country staying out of a single European currency.
Mr Byers was reacting to comments made by Nissan president, Carlos Ghosn, who highlighted the threat to future investment plans at the Sunderland site caused by the strong pound.
Mr Byers publicly acknowledged that the warning from Nissan president Carlos Ghosn about the Wearside plant facing its biggest threat, was "significant".
Mr Byers said: "As we know, there are those who would refuse to join the euro on principle or to rule it out for the whole of the next parliament even if it was in the economic interest of the United Kingdom to join.
"The statement by Carlos Ghosn shows how dangerous that approach is. It is an approach which puts at risk investment in the United Kingdom and the loss of jobs as a result.
"His statement also clearly demonstrates that provided the five economic tests are met, joining a successful single currency would help us create the conditions for higher and more productive investment in Britain and for greater trade and business in Europe."
Mr Ghosn was reiterating the views of senior management at the Sunderland factory who have long campaigned for the country to join the euro. Managing director John Cushnaghan, said: "This is not about closures and it is not about job losses. Carlos has said exactly what Nissan has been saying for years. The strength of sterling is affecting our competitiveness. "
Mr Ghosn stressed that Nissan would not close the plant, but warned that currency problems could jeopardise a potential £150m expansion. "How much we rely on Sunderland is at stake," he said. "We could be interested at limiting output at Sunderland and increasing output at other European plants."
Nigel Sherlock, president of the North East Chamber of Commerce, said: "Surely now the Government will take heed of the messages coming from leading companies like Nissan, Vauxhall, BMW, Toyota and Honda.
"The impact of a reduced or constricted Nissan operation in Sunderland would have a huge effect on the economy of the entire North East."
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