Fears for Jaguar Land Rover jobs after Government scraps regional support
Jul 9 2010 by Jonathan Walker, Birmingham Post
Jaguar Land Rover has warned jobs could be under threat if the Government presses ahead with plans to scrap regional support for West Midlands employers.
The fears emerged in the House of Commons as MP Jack Dromey (Lab Erdington) urged Ministers to think again.
His constituency includes the Jaguar car plant in Castle Bromwich.
And he told Ministers that JLR bosses had warned him they are desperately concerned about the future of the Midlands automotive industry, including their business.
Mr Dromey was discussing plans to axe government quango Advantage West Midlands, which was set up by Labour and spends £200 million a year supporting industry in the West Midlands.
The Conservative and Liberal Democrat coalition government plans to scrap it and let local councils take responsibility for supporting industry instead.
He said: “There are 150,000 people working in the automotive cluster in the Midlands - from the major manufacturers such as Jaguar and its plant in my constituency, through the machine tool, logistics and component companies, to the universities and research and development institutes.
“All work together in an effective cluster, with the regional development agency bringing together local authorities and the private sector to work in partnership and galvanise and consolidate that which is absolutely key to the success of our regional economy.”
He added: “If we want that automotive cluster to succeed, there is a simple reality to acknowledge. I am in discussions right now with Jaguar Land Rover about its decisions for the future.
“It says that the power and effectiveness of that automotive cluster is absolutely vital for its organisation, and in turn Advantage West Midlands is crucial to the cluster’s success.”
But Black Country MP Margot James (Con Stourbridge) defended the Government - and claimed industry needed lower taxes rather than more public spending.
She highlighted plans to give firms in the West Midlands a discount of £5,000 per worker for every new employee they take on, up to a maximum of ten.
Ms James said: “Let us not forget that what the private sector really needs is a vibrant economy. First and foremost, that is what drives jobs.”
Jaguar Land Rover, which also has a plant in Solihull, made profits of £32 million in the year to March, but still plans to close one of its West Midlands factories.
