Rover employees back at work

MORE than two months after the collapse of MG Rover, around 1,250 former employees have found new jobs.

The MG Rover taskforce met with Prime Minister Tony Blair and several other ministers at 10 Downing Street this morning to give an update on the progress the Midlands was making after suffering from the area's biggest company collapse.

The chairman of the taksforce, Nick Paul, said that nearly 1,250 workers have found new jobs. Of the 2,200 who were booked on to courses to learn new skills, around half have already begun their training. And a further 3,000 'at-risk' jobs in companies that supplied parts to the carmaker have been temporarily safeguarded thanks to around £3m in emergency grants to 156 companies.

MG Rover collapsed on 15 April after talks failed with Shanghai Automotive Industry Corporation, China's largest car producer. Rover, an iconic car brand, employed 6,100 workers in the Midlands and thousands more were employed by small businesses who supplied parts to the carmaker. Following the collapse the Government announced a £150m support package for suppliers, dealerships and employees.

Mr Paul said: 'The events of 15 April were unprecedented. Job losses on this scale have happened before but I can't remember a time when an announcement of this scale happened so suddenly.

'The West Midlands region had to come to terms with the massive fall out from MG Rover's closure with 6,000 jobs lost overnight.' He said many former suppliers were working 'around the clock' to keep staff on and find new markets.

'Other achievements include agreeing with Revenue and Customs to allow companies to defer VAT payments on the debts they are owed by MG Rover,' he added. 'This has given 57 companies struggling with cashflow problems much needed breathing space with VAT deferments now totaling £5m.'

Mr Paul admitted that companies which supplied MG Rover were 'stretched to the limit' and had been left with unpaid bills, major cash flow problems and workers whose jobs relied on MG Rover.