http://www.thesun.co.uk/article/0,,2-2005152032,00.html

TRADE Secretary Patricia Hewitt was caught up in a cash-for-cars row last
night.

She has offered a £100million loan to stop the collapse of MG Rover - and
save 6,000 jobs.

But her top civil servant is REFUSING to back the deal.

Ms Hewitt will now have to override the concerns of Catherine Bell, Acting
Permanent Secretary in her department.

An official said: "Bell has made her views clear to the Secretary of State.

"The decision to do the loan is a political one - the economic arguments don't
stack up."

The cash would be to keep MG Rover going for six months - as Chinese giant
Shanghai Automotive Industry Corporation negotiates a takeover.

But the deal has been dealt a further blow with a report from accountants
Ernst & Young suggesting MG Rover's parent company is technically bust.

The £200million deal depends on the company - Phoenix Venture Holdings -
being solvent.


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