Amicus Urge Wider Remit for MG Rover Inquiry

LONDON, April 29 -- Trade union Amicus has urged a more extensive inquiry by the DTI into the finances of MG Rover.

Union officials are concerned that Phoenix Venture Holdings, which is not at present in administration, may be subject to an existing third party claim from a company called Techtronic whose directors include the Phoenix Four.

Amicus say this set-up, unless properly investigated, could result in workers being deprived the profits from the sale of any assets they have been promised by Phoenix Venture Holdings.

Amicus' National Officer for the automotive industry, Roger Maddison, said:

"I have no doubt that protecting assets in this way is legally watertight but we believe that there is a moral issue here. Mr Towers has said publicly that any assets of Phoenix Venture Holdings being sold will be donated to the Employee Hardship Trust Fund. If this is not done, Mr Towers' offer will amount to nothing more than a shallow public relations exercise.

"We want the DTI's investigation to extend beyond what happened to the point of administration to include what's happening now concerning the assets of Phoenix Venture Holdings."

For further information please call Catherine Bithell in the Amicus press office on +44-(0)20-7420-8909 or +44-(0)7958-473-224