Rover (Hansard, 11 May 2000)

§ 26. Mr. Bercow
To ask the Secretary of State for Trade and Industry if he will make a statement on the future of the Longbridge plant. [120531]

§ Mr. Alan Johnson
Alchemy's cessation of negotiations with BMW provides a new opportunity for proposals to come forward which offer a viable future for Longbridge and which may provide more jobs than under the Alchemy proposals.
This Government's efforts over the next few weeks will be directed towards achieving a successful outcome which will serve the interests of the workers at Longbridge and the wider community in the West Midlands.

§ 28. Mrs. Heal
To ask the Secretary of State for Trade and Industry if he will make a statement on progress made by the Rover Task Force. [120533]

§ Mr. Alan Johnson
When I announced the creation of the Rover Task Force on the day following BMW's decision to break up the Rover Group, I asked it to look into the effect that would have on the Longbridge area of Birmingham and on the supplier chain and to make recommendations about what should be done to lessen the impact.
The Task Force has 21 members drawn from and representing a wide range of organisations in the West Midlands and produced an interim report published on 26 April. I have asked it to produce a final report at the end of June 2000.
In its interim report, the Task Force drew on over 1,000 questionnaires completed and returned to it by supplier chain companies and from the work done by its five sub-groups which have been created to assess the impact both on individuals and businesses. The Task Force has already provided telephone helplines for individuals and suppliers and a website. The report makes a number of additional recommendations about short and medium term actions that should be taken to regenerate the region and action is already being taken to support identified needs.
At the outset of the Task Force's work I committed £129 million to assist the people, communities and businesses of the West Midlands affected by BMW's decision. I have already given approval for £12 million worth of support for the West Midlands supplier chain companies from the £129 million. This will help them to draw up fresh Business Plans, find fresh markets, obtain export advice and receive support for retooling and 442W retraining. An additional commitment of £15.5 million, over and above the £129 million, has been made to support individuals. This money is providing help through a Rapid Response Unit at Longbridge offering fast-track access to benefits and training and is tackling re-skilling and re-training for workers from Rover and its supplier chain who will be made redundant or whose jobs will be affected.
The Task Force has also been working with regional partners on: Bank support for business—ensuring a consistent and supportive approach to suppliers dependent on Rover; and help for businesses to deal with this serious shock to the market. Tracking of each individual who is made redundant so that progress can be monitored and additional support given if needed. The aim is to maximise the successful redeployment of people and skills. Creating a Task Force People's Guide on available help for those facing redundancy. This 60-page booklet has been printed and will be sent out shortly. Support for apprentices/graduate trainees to complete their training and to maximise the retention of skills in the region and in the UK. A study into development of the region for high-tech manufacture in the West Midlands, including A38 Corridor and Longbridge. West Midlands Regional Supply Office activities to enable it to find alternative local customers for some present suppliers to Rover across the manufacturing sector.

§ Mr. Paul Marsden
To ask the Secretary of State for Trade and Industry if he will estimate the numbers of jobs which would be lost in(a) Shrewsbury and (b) Shropshire if Rover were to close; and if he will make a statement. [121762]

§ Mr. Alan Johnson
It is good news that BMW have come to an arrangement with the Phoenix Consortium to purchase Rover—Longbridge. Until more details are available it is too early to comment on the impact on jobs in the Shrewsbury and Shropshire areas.