Unions call for £8bn bail-out fund for industry (From Leigh Journal)

Unions call for £8bn bail-out fund for industry

11:44am Tuesday 23rd December 2008 in

• Skip social links
• Print
• Email
•  

Union leaders have called for an £8 billion fund to be set up to help companies through the current economic crisis as ministers continued to assess pleas for help from firms including car giant Jaguar Land Rover.

Unite said the Government should act quickly to help industry cope with the effects of the recession.

Joint leader Derek Simpson said the fund would save firms from having to apply for help in a “blaze of publicity”, which he believed was not helping to tackle the problem.

The scale of the crisis was highlighted by Toyota which yesterday predicted the first annual loss in its history.

It forecast an operating loss of £1.12 billion for the financial year ending next March. It had an operating profit of £17 billion in the previous year.

UK union leaders yesterday made last-ditch pleas to the Government to offer help to firms such as Jaguar Land Rover, in a bid to safeguard tens of thousands of jobs.

Mr Simpson said a support package should include an £8 billion fund for manufacturers to protect highly skilled jobs.

His call came amid speculation that Tata, the Indian owners of Jaguar Land Rover, has agreed to inject millions of pounds into the company to prevent an immediate cash flow crisis.

Business Secretary Lord Mandelson has said the Government wanted Tata to take action.