Treasury support for car industry needed in days not months, warns
Unite
19 December 2008
Derek Simpson, Unite joint general secretary today urged the
Treasury to delay no longer in providing short-term financial
assistance to the UK's ailing car industry.
"Government must establish a strategic funding mechanism for the
car industry within days, not weeks. It was disappointing to hear
the Prime Minister say earlier today (Friday) that no agreement on
a package has yet been reached. The urgency of the situation
dictates that the Government must, however, do as it did with the
banks and lose no time in intervening with vital assistance. It is
simply no good bailing out the banks if the banks won't then bail
out business.
Derek Simpson was speaking as President Bush announced an aid
package for the beleaguered US car industry:
"Only action by the Treasury in the next few days will safeguard
the tens of thousands of jobs and the many communities across the
country depending on car manufacturing for their livelihoods. For
their sake and the sake of our manufacturing base we do not have
the luxury of pondering on intervention for weeks or months.
Intervention must come this side of Christmas.
"What is being asked for from the Government is not a handout,
not a gift, it is access to strategic funding for a sector that is
key to our economy's global stature and one that will play a lead
role in its emergence from this recession. By providing
short-term loans, repayable with interest, the Treasury could
instantly restore some liquidity to this system and save the tens
of thousands of skilled jobs that are at this moment hanging by a
thread."
"This is a world class industry which has undergone a massive
modernisation process in recent times but it has been hit hard by
the global credit crunch - the market has simply seized up.
But make no mistake, failure to support the car industry now will
have severe, damaging ramifications for the rest of our
manufacturing base."
Unite has been pressing for a £13 billion strategic support
package from Government, similar to the support provided by the
German, French and Swedish governments to their manufacturing
sector.
ENDS
For further information contact Pauline Doyle on 07976 832
861
