GM CRISIS – Mandelson rules out Luton nationalisation

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Left to right: Unite convenors LAURIE EVANS and GARY REA, GM UK Finance Director RICHARD MOLYNEUX with Lord MANDELSON and GM UK Chairman BILL PARFITT (far right)
Left to right: Unite convenors LAURIE EVANS and GARY REA, GM UK Finance Director RICHARD MOLYNEUX with Lord MANDELSON and GM UK Chairman BILL PARFITT (far right)

BUSINESS Secretary Mandelson emerged from his meeting with union officials and the top General Motors management in Luton yesterday unable to guarantee the jobs of the Luton workers, after earlier stating that nationalisation was not an option.

At the plant he told the media ‘there are no guarantees’.

He added: ‘We are in very intense discussions at the moment, but what I’ve seen here today shows high productivity, low cost, no absenteeism, and high safety.

‘You have a workforce and a management working very close together.

‘You know in years gone past people would say in Britain that the workforce and their unions were part of the problem, here it’s very clear they are part of the solution.

‘And that’s why the government is standing with them and we will do everything we can to save production and jobs here in Luton.’

In answer to a question, he said: ‘The bridging loan from Germany was on behalf of all European governments.

‘But we are responsible for taxpayers’ money.

‘We want to know we are putting taxpayers’ money into a viable, commercial operation at Luton and Ellesmere Port.

‘We are not chucking money into anything without assurances as we recognise businesses and homeowners are in a very tough recession.’

Earlier in the morning Dave Wiltshire, Secretary of the All Trade Unions Alliance, spoke to local Three Counties Radio.

He said: ‘Mandelson should be asked just one question – what is he going to do to save GM Luton.

‘The only thing that will save the plant is nationalisation. None of the people bidding to take over GM Europe have any intention of keeping the Luton plant open.

‘Derispaska, who is behind Gaz, the main driving force behind Magna, let the LDV plant go.

‘When I say nationalisation, I’m not talking about the government taking GM into state ownership for a year and fattening it up to sell off again.

‘It needs to be nationalisation under the control of the workers.

‘Nationalisation is not a wild demand. President Obama has more or less nationalised GM in America.

‘The British government has been forced to re-nationalise part of the railways, so it can nationalise GM.

‘Since Mandelson is not prepared to do that he should be thrown out.’

Later, the radio presenter told Mandelson: ‘I’ve been told to ask you about nationalisation.’

Mandelson completely opposed nationalisation, saying: ‘It is not the government’s job to produce cars.’

The Unite trade union, which also opposes the nationalisation of the plant, issued a statement pledging a campaign to ‘win a future for the plant’.

It added: ‘The workers will be taking their campaign to the streets of Luton and the main towns around the plant in the coming weeks to build public support.’