While meeting workers at BMW in Oxford union leader calls for more
support for the car industry
5 February 2009
On a visit to BMW in Oxford today (5th February), to meet
workers at
the plant, Derek
Simpson, joint leader of Unite, will call on the government to
introduce an "old banger bonus" scheme, similar to
the successful German scheme as part of a comprehensive package to
support the UK car
industry.
The Autowrack Prämie (old banger bonus), introduced by the
German Government as part of a £47bn stimulus package proved to be
an instant success. The scheme gives car owners £2,500 to trade in
their old cars for new ones. The German government has put aside
€1.5bn to finance the scheme – enough to buy 600,000
cars.
The UK government have
committed to a £2.9billion package to support the car industry.
However, Unite is urging the government to go much
further. Unite is calling for £13 billion fund to be made
available to provide interim relief for producers and to cover
employment costs during the crisis period.This package could be
used to support a similar scheme to the Germans but only as part of
a wider, strategic and significant support package.
Derek Simpson, Unite, joint general secretary said; "Car
producers in the UK are hanging on by a thread because of a lack of
credit from the banks and a dramatic fall-off in demand for cars. A scheme
similar to the one introduced by the Germans would
be a
hugely popular way to boost car sales, but only as part of a wider, strategic and
significant support package.
"The support that Lord
Mandelson announced towards the end of January is a start.
Underwriting loans from the European Investment Bank and making
millions of pounds available to help with retraining for car
industry workers during the downturn is to be welcomed but much
more support will be needed.
"We now need to build on this initial phase of support.
More has to be done to throw a lifeline to the car and components
sector, and we need the sort of confidence-building measures that
will stimulate demand for cars among the public. If no-one is
buying cars, it makes it very difficult for a rescue package to
work. "
ENDS
Contact: Ciaran Naidoo on 07768 931 315
Email to a friend
Want to share this story? These sites allow you to tag and share links across the internet enabling you to share these links with friends and people with similar interests. You can also access your links from any computer you happen to be using.
