UK Government Car Aid Welcome - But Leaves Little to go Around Industry

LONDON, January 27 -- Commenting on the announcement today (Tuesday) from Lord Mandelson that the government will provide support to the UK car industry, including underwriting loans from the European Investment Bank and making millions of pounds available to help with retraining for car industry workers during the downturn, Unite welcomed the assistance but warned that more support will be needed for the car industry.

Tony Woodley said: "Today's statement will come as a massive disappointment to the tens of thousands of workers employed in or dependent on this vital industry. Two billion pounds sounds like a lot of money, but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies.

"This is a fraction of the support being given by almost every other government in Europe. Ministers need to more than double the money available, and do so immediately. Make no mistake, we will be continuing to fight for more assistance from government for this industry.

"The spectre of redundancy is still hovering over thousands of skilled jobs. We desperately need to see creative action, such as reduced hours with pay losses made up by the state. Support for the credit arms of the car companies is also vital to keep product moving."

Derek Simpson, joint general secretary of Unite added: "While we welcome any support for technological change in the future, this money from Europe is months away. There could be little left of the industry by the time it arrives. Britain needs those factories and skills there for when the economic revival comes - if they go, they are gone forever

"This package is too little. But it is not yet too late. Ministers must leave behind the failed free-market philosophy once and for all and intervene decisively now. The principle of government intervention to support strategically vital industries, such as the car industry, has now been established, and we will be pressing to ensure that we build on this from here on in."