European money for Jaguar and Nissan welcome – but industry still needs urgent help now, says Unite
Unite, the UK’s biggest union, today (Tuesday) welcomed the news that the European Investment Bank has approved significant funding for two UK-based car makers in Britain, Jaguar Land Rover and Nissan – but warned that UK government help is urgently needed to support the industry in the here and now.
The EIB money is the first funding provided to any car maker in the UK since the economic crisis began last year, and comes as another blow is delivered to car manufacturing with the news that new car sales fell by 30 percent between February and March.
According to Unite joint general secretary Tony Woodley: “At a time when there is only dismal news for this vital industry, this European money will help Jaguar and Nissan plan for their future. In underwriting the loans, the government has demonstrated it recognises the strategic importance of this industry to our country.
“But with this money earmarked for longer term environmental projects, we need urgent action to help all UK-based car manufacturers in the here and now.
“A cash flow crisis and the collapse in demand are hammering our companies and putting thousands of jobs at serious risk. Now we need government measures to address these concerns, to protect jobs and stimulate demand. That means a subsidy programme to keep people at work and off the dole, fixing the broken finance system so that it is easier to buy a car and putting in place a scrappage scheme to encourage people to purchase a car at a time when confidence is at an all time low.”
Before money is paid out to UK companies from the EIB, the loans must be guaranteed by the UK government. EIB money requires that car makers must invest in new technology to lower emissions during vehicle production and driving.
Unite is leading a campaign for strategic government support to be directed to the UK’s manufacturing industry, targeting the car and components sector which provides work for an estimated 850,000 people. On May 16th, Unite will lead the March for Jobs through Birmingham city centre to demand a plan for job protection and creation.
ENDS
For information contact Pauline Doyle on 07976 832 861
Pauline Doyle
Head of Media and Campaigns
Unite the Union
35 King Street
London WC2E 8JG
ph: 020 7420 8928
mobile: 07976 832 861
pauline.doyle@unitetheunion.com
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