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| Version 5 | Version 6 |
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| Car worker subsidies 'considered' | Car worker subsidies 'considered' |
| (30 minutes later) | |
| The government is considering giving car firms a "wage subsidy" to encourage them to put workers on shorter hours rather than making them redundant. | The government is considering giving car firms a "wage subsidy" to encourage them to put workers on shorter hours rather than making them redundant. |
| Business Secretary Lord Mandelson faced the call from the Unite union's Tony Woodley at a motor industry summit . | Business Secretary Lord Mandelson faced the call from the Unite union's Tony Woodley at a motor industry summit . |
| The Department for Business, Enterprise and Regulatory Reform said it would consider the plan but firms had to come back with fully costed proposals. | The Department for Business, Enterprise and Regulatory Reform said it would consider the plan but firms had to come back with fully costed proposals. |
| It also said talks had begun with banks to boost availability of car loans. | It also said talks had begun with banks to boost availability of car loans. |
| The firms at the gathering of motor industry representatives welcomed a £2.3bn loan guarantee scheme announced on Tuesday, but pressed for specific proposals to ease consumer credit. | The firms at the gathering of motor industry representatives welcomed a £2.3bn loan guarantee scheme announced on Tuesday, but pressed for specific proposals to ease consumer credit. |
| Speedy access to credit, speedy access for our finance arms so we can encourage more purchase of cars - these are the big issues now Tony Woodley Parts firm announces job cuts | Speedy access to credit, speedy access for our finance arms so we can encourage more purchase of cars - these are the big issues now Tony Woodley Parts firm announces job cuts |
| Leaving the meeting at the Department for Business, Enterprise and Regulatory Reform (BERR) on Wednesday, Tony Woodley, Unite's joint general secretary, said without more help tens of thousands of jobs could be lost because of the "collapse" in car sales. | Leaving the meeting at the Department for Business, Enterprise and Regulatory Reform (BERR) on Wednesday, Tony Woodley, Unite's joint general secretary, said without more help tens of thousands of jobs could be lost because of the "collapse" in car sales. |
| And he told the BBC: "We asked the government to look at immediate financial support for short-time working. If we can do something along those lines to maintain the skills, that's the best way forward. | And he told the BBC: "We asked the government to look at immediate financial support for short-time working. If we can do something along those lines to maintain the skills, that's the best way forward. |
| "But speedy access to credit, speedy access for our finance arms so we can encourage more purchase of cars - these are the big issues now." | "But speedy access to credit, speedy access for our finance arms so we can encourage more purchase of cars - these are the big issues now." |
| Three-day week | Three-day week |
| Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. | Car sales are falling amid a worsening economic climate, with unions warning of a jobs "catastrophe" if the measures do not have an impact soon. |
| Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. | Several plants are on extended shutdowns, with firms including Honda, Nissan and Jaguar Land Rover among those affected. |
| Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. | Engineering group GKN, which supplies parts to car makers including Land Rover and Ford, announced on Wednesday that it had cut 242 UK jobs since October and may have to shed more. |
| There are some people who might like to buy a car if they can get the finance, if they can get hire purchase at attractive terms Ken ClarkeShadow business secretary | |
| Luxury sports car firm Aston Martin became the latest manufacturer to cut production, with workers at its factory at Gaydon, Warwickshire, starting a three-day week. | Luxury sports car firm Aston Martin became the latest manufacturer to cut production, with workers at its factory at Gaydon, Warwickshire, starting a three-day week. |
| In a statement released after Wednesday's meeting, Lord Mandelson said the package of loan guarantees had been "welcomed by the manufacturers we met" and they had discussed how car makers and and suppliers could access them. | In a statement released after Wednesday's meeting, Lord Mandelson said the package of loan guarantees had been "welcomed by the manufacturers we met" and they had discussed how car makers and and suppliers could access them. |
| "There was also agreement at today's meeting to take forward work to improve car company financing arms' access to funding," he said. | "There was also agreement at today's meeting to take forward work to improve car company financing arms' access to funding," he said. |
| 'Positive steps' | 'Positive steps' |
| He said his department had "already opened exploratory discussions with banks" and there would be more meetings on the issue with manufacturers this week. | He said his department had "already opened exploratory discussions with banks" and there would be more meetings on the issue with manufacturers this week. |
| "I am confident that the actions we and the automotive industry will now be taking together will help the industry build the bridge to a greener future for the auto sector," Lord Mandelson said. | "I am confident that the actions we and the automotive industry will now be taking together will help the industry build the bridge to a greener future for the auto sector," Lord Mandelson said. |
| But his Conservative shadow Ken Clarke said the government had been "burning their way through billions" since the autumn yet had still not concentrated on getting credit back into the economy. | |
| He told the BBC that the finance arms of car companies should qualify for some help. | |
| "There are some people who might like to buy a car if they can get the finance, if they can get hire purchase at attractive terms," he said. | |
| "The credit crunch is actually stopping the finance arms of car companies providing that finance and that's the only thing they (the government) should have concentrated on yesterday - they can't afford anything else." | |
| The government announced on Tuesday that it would offer car makers loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. | The government announced on Tuesday that it would offer car makers loans of up to £1.3bn from the European Investment Bank and guarantees of support of up to a further £1bn for lending. |
| Paul Everitt, head of the Society of Motor Manufacturers and Traders, welcomed the "positive steps taken by the government". | Paul Everitt, head of the Society of Motor Manufacturers and Traders, welcomed the "positive steps taken by the government". |
| He added: "As an industry we emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit but have agreed to meet officials later this week to discuss technical issues holding up the ability of vehicle financing arms to get access to Bank of England funding." | He added: "As an industry we emphasised the lack of specific proposals to stimulate demand in the market and ease consumer credit but have agreed to meet officials later this week to discuss technical issues holding up the ability of vehicle financing arms to get access to Bank of England funding." |
| Tom Purves, chief executive of BMW, described the meeting as "very constructive". Asked about the government package, he replied: "No-one can say whether it's enough or not enough. | Tom Purves, chief executive of BMW, described the meeting as "very constructive". Asked about the government package, he replied: "No-one can say whether it's enough or not enough. |
| "The conversations we had about taking elements of the package on over the next two weeks has been very beneficial." | "The conversations we had about taking elements of the package on over the next two weeks has been very beneficial." |
| Russell Luckock, chairman of A E Harris, which supplies the car industry with components, told the BBC the problem was people who wanted to buy cars could not get credit and until the government could ease that then "the log jam will stay jammed". | |