21 May 2009

Government Committee comes to the Northwest to examine Automotive Assistance Programme

The Northwest Regional Development Agency (NWDA) has today (21st May) provided evidence at a Department for Business, Enterprise and Regulatory Reform (BERR), Select Committee public meeting, held in Chorley.

The Business and Enterprise Committee is appointed by the House of Commons to examine the administration, expenditure and policy of BERR, the government department which oversees the running of the Regional Development Agencies in England.

The Committee’s rare visit out of the capital immediately follows a visit to Birmingham yesterday to take evidence from leading motor manufacturers as part of its inquiry into the motor industry. This is the first time in its history that it has visited Chorley.

The Committee is currently investigating the motor manufacturing sector, particularly looking at ways in which the government can help the industry through the economic downturn in order to support employees during these challenging times. 

In Chorley the Committee heard from representatives of; Multipart, Leyland and the NWDA. In Birmingham yesterday the committee heard evidence from; Jaguar Land Rover, Toyota, the Society of Motor Manufacturers and Traders (SMMT) and the Retail Motor Industry Federation (RMIF).

Steven Broomhead, Chief Executive of the NWDA, said: “To mitigate the effects of the current economic downturn, the NWDA has provided focussed support on both regional and national automotive supply chains, to ensure that the manufacturers are able to produce vehicles in the short and medium term.  The Northwest automotive economy is worth over £9bn per year, and employs over 40,000 people in 500 companies. We have long recognised the importance of this sector and have built strong long term relationships with the manufacturers.”

Chorley MP Lindsay Hoyle, who is a long standing member of the Committee said: “I am delighted that that Committee are visiting Chorley. It is very rare for the Committee to take evidence outside of London and it shows the importance with which members attach to this issue that they wish to come to the Northwest to listen and question motor manufacturers based in our region.

“This is the first time the Committee has visited Chorley and I want this evidence session to be valuable both for those attending and for members of the Committee.  It is important that we do everything we can to support the motor manufacturing industry which employs thousands of people here in the Northwest.  Our inquiry will help highlight the specific needs of the industry and encourage the government to take further action to help motor manufacturing.”
ENDS

Notes to Editors
The Committee:
• The Business and Enterprise Committee is appointed by the House of Commons to examine the administration, expenditure and policy of the Department for Business, Enterprise and Regulatory Reform (BERR) and its associated public bodies, including Ofcom and the Office of Fair Trading (OFT).
• The Committee was formed on 6 November 2007 and replaces the Trade and Industry Committee. The remit of the Committee reflects the responsibilities of the Department for Business, Enterprise and Regulatory Reform and includes issues such as the Government's relationship with Royal Mail, competition policy, business competitiveness and trade promotion.
The Programme:
• BERR’s Automotive Assistance Programme was launched in March 09. This provides loan guarantees, and in exceptional cases, loans, to automotive companies. £1bn in loan guarantees or loans will be provided by UK government. A further £1.3bn of guarantees will be provided to loans made by the European Investment Bank. This scheme is only available to companies with a turnover of >£25m and who are proposing to invest > £5m. The investment must also be linked directly to reducing carbon emissions from vehicles or the manufacturing process.