European money for Jaguar and Nissan welcome - but industry still
needs urgent help now, says Unite
7 April 2009
Unite, the UK's biggest union, today (Tuesday) welcomed the news
that the European Investment Bank has approved significant
funding for two UK-based car makers in Britain, Jaguar Land Rover
and Nissan - but warned that UK government help is urgently needed
to support the industry in the here and now.
The EIB money is the first funding provided to any car maker in
the UK since the economic crisis began last year, and comes as
another blow is delivered to car manufacturing with the news that
new car sales fell by 30 percent between February and March.
According to Unite joint general secretary Tony Woodley: "At a time
when there is only dismal news for this vital industry, this
European money will help Jaguar and Nissan plan for their
future. In underwriting the loans, the government has
demonstrated it recognises the strategic importance of this
industry to our country.
"But with this money earmarked for longer term environmental
projects, we need urgent action to help all UK-based car
manufacturers in the here and now.
"A cash flow crisis and the collapse in demand are hammering our
companies and putting thousands of jobs at serious risk. Now
we need government measures to address these concerns, to protect
jobs and stimulate demand. That means a subsidy programme to
keep people at work and off the dole, fixing the broken finance
system so that it is easier to buy a car and putting in place a
scrappage scheme to encourage people to purchase a car at a time
when confidence is at an all time low."
Before money is paid out to UK companies from the EIB, the loans
must be guaranteed by the UK government. EIB money requires
that car makers must invest in new technology to lower emissions
during vehicle production and driving.
Unite is leading a campaign for strategic government support to
be directed to the UK's manufacturing industry, targeting the car
and components sector which provides work for an estimated 850,000
people. On May 16th, Unite will lead the March for
Jobs through Birmingham city centre to demand a plan for job
protection and creation.
ENDS
For information contact Pauline Doyle on 07976 832 861
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