Ministers do not emerge with any credit from MG Rover report

Shadow Business Secretary Ken Clarke says that questions need to be asked about the Government's role in the MG Rover deal.

Responding to the publication of the report into the collapse of MG Rover, he said that the inspectors "quite rightly" criticise the Phoenix Four and their Chief Executive, "who seem to have enriched themselves at a time when MG Rover workers were losing their jobs".

But, he said, "it is a pity" that the inspectors did not think that the scope of the inquiry enabled them to go more precisely into the Government’s role in the selection of the Phoenix bid.

It is also "regrettable", Clarke said, that they didn't investigate the possible misuse of taxpayers' money seeing as "Ministers put in £6.5m in the middle of an election campaign, to keep the company going beyond polling day".

"Unfortunately this report does not shed enough light on the Government’s undoubted involvement in brokering the deal in the first place and failing to realise that the project was heading for disaster", he added.

"I can understand why Peter Mandelson was so reluctant for this report to come out because it reminds us of this whole sorry episode from which Government ministers do not emerge with any credit."

LLOYDS “DRIP DRIP” REDUNDANCY APPROACH CONDEMNED

EDINBURGH FINANCE MUST REBUILD

SNP Lothians MSP Shirley Anne Somerville has today questioned the “drip drip” announcements of job losses coming from Lloyds Banking Group as they announced a further 220 job losses at Scottish Widows as part of over 1000 redundancies announced today.

Her concerns were echoed by Livingston MSP Angela Constance who has previously called for clarity from the Lloyds Group over the future of the Intelligent Finance online bank in her constituency.

Ms Somerville, who represents Edinburgh and its financial district said;

“Today’s news will be devastating for employees of Scottish Widows.

“Lloyds “drip drip” approach to job losses is creating a climate of uncertainty as they try to hide the full extent of the cuts facing Lloyds brands.

“This announcement confirms warnings that the Lloyds – HBOS merger risked jobs in Edinburgh rather than saved them.

“The European Commission’s call for the Lloyds Group to be broken up could preserve jobs and keep the diversity we need in the financial market and I am concerned by Lloyds refusal to consider sell-offs but its insistence on cutting jobs.

“Edinburgh’s financial sector can and will recover with new investors and new business – ending Lloyds control over much of Edinburgh’s financial business would be a step toward a new future for Edinburgh.”

Livingston MSP Angela Constance added;

“This will only increase the worries of staff at Intelligent Finance who fear their operation is being run down for lay offs and possible closure.

“Selling Intelligent Finance as a profitable going concern to allow the business and those employed in it to keep working appears to offer a better deal that sticking with the salami slicing approach of Lloyds Group.”