MG Rover Group
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Phoenix Venture Holdings Ltd Statement:
During the course of this past week the administrator, PWC, the Trades Unions, the DTI and members of the management team have explored every avenue aimed at avoiding today’s redundancy announcements.
Clearly, not enough progress has been made on this to provide comfort for the administrators, and for the DTI, to continue the payment process that began last week.
In May 2000, when Rover was saved from BMW’s liquidation process, a lot of people said that the business could not last for more than 14 months. The management and employees of MG Rover have defied those conventional predictions and worked tirelessly to create a positive result. Almost five years later, and within weeks of what we believe to be its natural long-term outcome, it is devastating to be stopped at the final hurdle.
In a meeting with the administrators this afternoon, the directors of PVH discussed whether any other possibilities, including use of PVH and personal assets, could provide a further mechanism to allow employees to continue to be paid. The conclusion of this discussion was that the best use of those assets would be to quickly realise their value for the benefit of the Trust established to benefit the families and dependants of the Longbridge workforce.
This will enable the initial Trustees, Carl Chinn and Nigel Petrie, to start providing financial assistance to the employees of Longbridge, and their families. We can also announce that the Bishop for Birmingham, has approached us, and has agreed to become a Trustee of that fund.
In addition to the many millions of pounds being made available for the Employee Trust, we are also committed to provide any other support that the administrators request in creating the best possible employment outcome for this business emerging from insolvency. Despite a concerted view to the contrary, we remain hopeful that car making at Longbridge is not at an end.
For all of us this is a desperately sad day. Our hearts go out to all of our employees, their families, and the local community, at this terrible time.
John Towers , Peter Beale, John Edwards, Nick Stephenson
MG Rover Workers And West Midlands Community - Statement
Secretary of State for Trade and Industry Patricia Hewitt said:
"This afternoon we announced a package of support totalling more than £150 million for MG Rover workers, their families and the community affected by the collapse of the company.
"The support package consists of:
* up to £50 million for training for workers made redundant at MG Rover and suppliers (£25 million of new money from the DTI, DWP and European Social Fund and priority access to £25 million from the Employer Training Pilots for companies affected by MG Rover in the West Midlands and nationally; and support for people wanting to start businesses);
* over £40 million to cover redundancy payments and protective awards for Longbridge workers;
* £24 million to establish a loan fund to help otherwise viable businesses affected by MG Rover's collapse and for other purposes agreed by the MG Rover Task Force; and
* £41.6 million already made available for MG Rover suppliers, which we announced on 8 April.
"We are ready to provide immediate practical help through JobCentre Plus, Businesslink and the Redundancy Payments Service for those affected by the MG Rover collapse.
"JobCentre Plus has established its Rapid Response Service at 1300 Bristol Road South, Northfield, Birmingham B31 2TQ to provide advice on finance and job seeking, help to identify transferable skills; and re-training to match the skills of the workforce with the needs of the local labour market. Similar services will be provided at Jobcentre Plus offices in Redditch, Stourbridge and Halesowen.
"In addition, Advantage West Midlands is making an investment of £42 million for the redevelopment of the Longbridge site and the establishment of a technology park there together with a grant of £19.3 million to Warwick Manufacturing Group's International Automotive Research Centre.
"This extra investment of £60 million will further support the development of high technology manufacturing and businesses in the West Midlands.
"We will also be asking for EU funds next week to match funds provided for supply chain support and training."
Reference Material:
Vcheck” for buyers of used cars, vans and motorbikes.
“Vcheck”, matches registration number and VIN number of a vehicle by checking the DVLA information. It then checks that it’s not stolen or written off by accessing the data from Association of British Insurers (ABI) and official Police (PITO) vehicle data across the UK.
Last year 497,630 were written off (source Vcheck ABI Category 1-4 insurance write-offs) and over 350,000 were stolen (source Vcheck PITO). Figures show that every 20 minutes an unsuspecting car buyer drives off having bought a stolen vehicle.
Before you buy it, Vcheck it! Vcheck costs only £19.95!
Phoenix Venture Holdings Ltd Statement:
During the course of this past week the administrator, PWC, the Trades Unions, the DTI and members of the management team have explored every avenue aimed at avoiding today’s redundancy announcements.
Clearly, not enough progress has been made on this to provide comfort for the administrators, and for the DTI, to continue the payment process that began last week.
In May 2000, when Rover was saved from BMW’s liquidation process, a lot of people said that the business could not last for more than 14 months. The management and employees of MG Rover have defied those conventional predictions and worked tirelessly to create a positive result. Almost five years later, and within weeks of what we believe to be its natural long-term outcome, it is devastating to be stopped at the final hurdle.
In a meeting with the administrators this afternoon, the directors of PVH discussed whether any other possibilities, including use of PVH and personal assets, could provide a further mechanism to allow employees to continue to be paid. The conclusion of this discussion was that the best use of those assets would be to quickly realise their value for the benefit of the Trust established to benefit the families and dependants of the Longbridge workforce.
This will enable the initial Trustees, Carl Chinn and Nigel Petrie, to start providing financial assistance to the employees of Longbridge, and their families. We can also announce that the Bishop for Birmingham, has approached us, and has agreed to become a Trustee of that fund.
In addition to the many millions of pounds being made available for the Employee Trust, we are also committed to provide any other support that the administrators request in creating the best possible employment outcome for this business emerging from insolvency. Despite a concerted view to the contrary, we remain hopeful that car making at Longbridge is not at an end.
For all of us this is a desperately sad day. Our hearts go out to all of our employees, their families, and the local community, at this terrible time.
John Towers , Peter Beale, John Edwards, Nick Stephenson
MG Rover Workers And West Midlands Community - Statement
Secretary of State for Trade and Industry Patricia Hewitt said:
"This afternoon we announced a package of support totalling more than £150 million for MG Rover workers, their families and the community affected by the collapse of the company.
"The support package consists of:
* up to £50 million for training for workers made redundant at MG Rover and suppliers (£25 million of new money from the DTI, DWP and European Social Fund and priority access to £25 million from the Employer Training Pilots for companies affected by MG Rover in the West Midlands and nationally; and support for people wanting to start businesses);
* over £40 million to cover redundancy payments and protective awards for Longbridge workers;
* £24 million to establish a loan fund to help otherwise viable businesses affected by MG Rover's collapse and for other purposes agreed by the MG Rover Task Force; and
* £41.6 million already made available for MG Rover suppliers, which we announced on 8 April.
"We are ready to provide immediate practical help through JobCentre Plus, Businesslink and the Redundancy Payments Service for those affected by the MG Rover collapse.
"JobCentre Plus has established its Rapid Response Service at 1300 Bristol Road South, Northfield, Birmingham B31 2TQ to provide advice on finance and job seeking, help to identify transferable skills; and re-training to match the skills of the workforce with the needs of the local labour market. Similar services will be provided at Jobcentre Plus offices in Redditch, Stourbridge and Halesowen.
"In addition, Advantage West Midlands is making an investment of £42 million for the redevelopment of the Longbridge site and the establishment of a technology park there together with a grant of £19.3 million to Warwick Manufacturing Group's International Automotive Research Centre.
"This extra investment of £60 million will further support the development of high technology manufacturing and businesses in the West Midlands.
"We will also be asking for EU funds next week to match funds provided for supply chain support and training."
Reference Material:
Vcheck” for buyers of used cars, vans and motorbikes.
“Vcheck”, matches registration number and VIN number of a vehicle by checking the DVLA information. It then checks that it’s not stolen or written off by accessing the data from Association of British Insurers (ABI) and official Police (PITO) vehicle data across the UK.
Last year 497,630 were written off (source Vcheck ABI Category 1-4 insurance write-offs) and over 350,000 were stolen (source Vcheck PITO). Figures show that every 20 minutes an unsuspecting car buyer drives off having bought a stolen vehicle.
Before you buy it, Vcheck it! Vcheck costs only £19.95!
posted by Jon Fry at 2:18:00 AM
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