HC Deb 05 July 2002 vol 388 cc613-4W
Mr. Jim Cunningham

To ask the Secretary of State for Trade and Industry what impact studies(a) have been and (b) will be undertaken by the Government on the effect of the closure of Massey Ferguson on dependent companies in Coventry; and what measures the Government have taken to encourage new manufacturing companies in (i) Coventry and (ii) the West Midlands. [65661]

Ms Hewitt

[holding answer 3 July 2002]: Work is now underway to consider the impact of the Massey Ferguson reduction on its supplier chain. This will be conducted under the management of the "Massey Ferguson Regional Support Team", which was set up on Friday 28 June 2002. It will be chaired by Councillor Nick Nolan, Leader of Coventry City Council and members include AGCO managers, Advantage West Midlands (the Regional Development Agency), the Local Authorities, Coventry and Warwickshire Chamber or Commerce, Warwick Manufacturing Centre, Coventry, Solihull and Warwickshire Partnership, Jobcentre Plus (formerly the Employment Service), Trade Unions represented at the plant, local Members of Parliament, and the DTI through the Government Office for the West Midlands.

The Government have a number of measures to support and help new businesses—including new manufacturing companies—such as Regional Selective Assistance Enterprise Grants and SMART Grants which are administered by Advantage West Midlands or the Small Business Service. In addition, the "Accelerate" scheme has helped numerous manufacturers in the motor vehicle sector, and the recommendations of the Rover Task Force has enabled funding from the UK Government and European Structural Funds to be focussed on the diversification and modernisation of West Midlands manufacturing companies.

Manufacturing matters to the Government. A National Manufacturing Summit took place in Birmingham on 5 December 2001, with a specific West Midlands follow-up event on 7 March 2002. These have helped to initiate the Government's Manufacturing Strategy, which was published in April 2002. Additionally, the Manufacturing Advisory Service, administered by administered by the Small Business Service, will be officially launched on 8 July 2002.