Unions seize on fivers fiasco

UNIONS have seized on the 'fading fivers' fiasco to bolster their opposition to plans for a spin-off of the Bank of England's banknote printing arm as a private company.

It emerged last week that serial numbers on the new £5 note could easily rub off. Even before the Bank's move to halt the notes' distribution, representatives of the 450 workers at the high-security Debden printing works in Essex - about half of whom are involved in printing - were digging in against any move to shift them into the private sector.

The £5 notes were made at Debden, but it is thought that unions will flaunt the fiasco as a foretaste of what could happen if note printing is contracted out. One union leader privately described the debacle as 'excellent'.

The Bank launched a review of Debden's future in February. Officially, it is looking at a range of possibilities.

But the favoured option is to establish Debden as an independent private company with a long-term exclusive contract with the Bank. This would allow it to seek other security printing business - such as passports - to halt the slide in numbers employed at the plant.