Government car aid welcome - but leaves little to go around
industry
Unite has welcomed the positive announcement for the car
industry but is calling for further support to safeguard the car
sector.
Commenting on the announcement 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, joint general secretary, 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. "
ENDS
For further information contact Pauline Doyle on 07976 832
861 or Ciaran Naidoo on 07768 931 315
