It is becoming increasingly difficult to understand why the
government cannot take up the simple and - compared with other
proposals - relatively inexpensive Tory national loan guarantee
scheme to enable companies like Nissaan to obtain the finance they
desperately need.
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TELEGRAPH 9.1.09
Lord Mandelson warns of further job cuts in car industry as Nissan
axes 1,200 staff
Lord Mandelson, the Business Secretary, has warned of further job
losses in the UK car industry as Nissan announced it was shedding
1,200 staff.
By Jon Swaine and Murray Wardrop
About a quarter of the positions at the car manufacturer's Sunderland
plant - the country's largest - will be axed as the firm struggles in
the economic crisis.
The company sold 27 per cent fewer cars in December than during the
same month in 2007, a sharper decline than the industry average.
Trevor Mann, Nissan's senior vice president for manufacturing,
Europe, said: "The Sunderland plant is currently operating in
extraordinary circumstances not of our making. It is essential we
take the right action now to ensure we are in a strong and viable
position once business conditions return to normal.
"Unavoidably, this means we have had to make some very tough
decisions in recent weeks. However by doing so, we are helping to
safeguard our long term future which I believe is extremely positive."
The company said it hoped the necessary reduction in staff could be
met through voluntary redundancies.
Lord Mandelson said the government "stands fully behind" Nissan's
decision but warned that he expected further job losses across the
industry.
Speaking after a meeting of the Cabinet in Liverpool, he said:
"Nissan is a very robust company indeed and this plant in Sunderland
is a very resilient plant indeed. It is modern, it produces excellent
cars, it is a huge exporter.
"Nissan have taken this decision today in order to secure its future
success. The Government stands fully behind that."
Asked whether he expected further job losses in the UK car industry,
Lord Mandelson replied: "I expect there will be, in view of the very
sharp drop in demand for the cars.
"But the measures that will be taken by the companies will be to
ensure their futures."
He added: "I appreciate that this will be a tough time for workers.
We will help any employee find alternative opportunities as quickly
as possible."
Referring to the cuts at Nissan, Derek Simpson, the joint general
secretary of the Unite union, said: "This is devastating news for the
workers and their families.
"Today's announcement shows just how serious Britain's economic
difficulties are. Unite will be doing everything possible to
minimise compulsory redundancies and it is absolutely crucial that
these workers' skills are not lost."
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Mr Alan Duncan, Shadow Business Secretary, has this afternoon issued
a statement regarding the Nissan job losses:
"We regret these losses. The motor industry has been hit hard by a
collapse in demand. There is no complete escape from Gordon Brown's
recession.
"Gordon Brown's 100,000 new jobs claim is already falling apart as an
exercise in spin. He has previously said that his plan would help
companies like Nissan to save jobs. That now appears to be little
more than cynical spin. While he gets headlines, people are getting
laid off.
"Our national loan guarantee scheme would help sectors like this get
the credit support they so desperately need. Every day the Government
dithers and does not introduce our policy, more jobs are lost."
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