Business figures warn Mandelson that time is running out
Lord Mandelson’s response to a detail package of support for the automotive industry, drawn up at the recent West Midlands Auto Industry Summit, has drawn further reaction from the business community.
Birmingham Chamber of Commerce and Industry expressed disappointment in the Business Secretary's response on Monday night.
“It’s disappointing that it’s not really giving much away, and yet as we speak companies are going bust. What we need is some action and a clear timescale for this,” a spokesman said. “It seems that they are struggling to understand the urgency – if something is going to happen it has to happen sooner rather than later.
“We know they aren’t just in the business of giving away money, but this is about a loan, not a bail-out.
“It may be too late and we need to just get things moving, especially for the suppliers - they are feeling it the most.
“Confidence, which needs to be raised, is falling by the hour.”
Martin Wassell, West Midland regional director of employers body the EEF, said: “Lord Mandelson is right to recognise the importance of the automotive sector, not just in the West Midlands but for the whole of the UK economy.
“We are also pleased that the government is still examining whether they can do something to assist companies hang onto skilled workers and help get credit insurance flowing, but time is running out.
“Many of the initiatives that the government have already introduced are still to fully come on stream and some have yet to provide any real benefit to companies at the coalface.
“The automotive sector and manufacturers across the West Midlands now need to see action not words to prevent this downturn from fatally damaging yet more perfectly viable companies.”
Jaguar Land Rover chief executive David Smith said the company was keeping the Government brief on its position and said he was pleased that the support package announced so far had been approved by the European authorities.
