Group Lotus (Redundancies) (Hansard, 12 February 2002)

§ Mr. Wilson

I regret the announcement made by Group Lotus on 6 February of plans for up to 275 redundancies over the next few months, with the exact numbers to be decided after consultations with staff. However I note that these redundancies represent only 17 per cent. of the total Lotus work force. Recent improvements in manufacturing processes and productivity made by Group Lotus have led to an excess of staff employed in the manufacturing facility and this, together with a short term slowdown in the global market for sports cars, has led to the company's decision.

I am pleased that the highly efficient Lotus car production at Norfolk of the Lotus Elise and Esprit and the GM/Opel roadster will continue at around 5,000 cars per annum. In the long term this continued commitment by Lotus to manufacture high quality niche sports cars will lead to increased sales and profitability. In addition Lotus Engineering, which is largely unaffected, will continue to provide high quality R&D and engineering consultancy services to an increasing number of automotive manufacturing clients. It is estimated that one in 10 of every cars sold in Europe have an engine developed by Lotus.

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to the Radioactive Incident Monitoring Network which I understand will be included in the response by the Department for Transport, Local Government and the Regions.

To identify the location of registered offices for all main contracting parties would incur disproportionate costs, but a survey of the top 16 contracts, in cost terms (see table), has revealed that the registered office is in England in every case.

The UK's automotive design engineering community, of which Lotus is a leading example, is respected internationally for its capability and excellence. Continued success critically depends on staying at the forefront of technological advance. My Department is already helping the sector maintain this world-class position through support for best practice channelled through the Society of Motor Manufacturers and Traders. Moreover, direct funding for cutting edge R&D is available through the Foresight Vehicle LINK Programme. Here we are supporting three projects involving Lotus and a number of new Lotus proposals are being considered. The ongoing Foresight Vehicle road-mapping work allows companies such as Lotus to help set the priorities for the next phase of the programme to ensure its continuing relevance to strategic business needs. Furthermore, the Government's draft "Powering Future Vehicles" strategy provides an opportunity for Lotus to help shape thinking over the medium to long term in one of its areas of key competence.

At European level, my Department has actively supported the inclusion of sustainable surface transport technologies in the EC sixth RTD&D Framework Programme, which is scheduled to be launched later this year. There is an indicative budget of about euro 600 million associated with this sub-theme. As with previous Framework Programmes, of which Lotus has been a beneficiary, the Government will establish a number of dedicated National Contact Points to provide information and guidance to prospective participants.