- Paperback
- Publisher: Stationery Office Books (25 July 2006)
- Language English
- ISBN-10: 0215030176
- ISBN-13: 978-0215030177
- Product Dimensions: 29.2 x 20.2 x 0.8 cm
- Amazon Bestsellers Rank: 4,511,647 in Books (See Top 100 in Books)
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Synopsis
The closure of MG Rover's plant at Longbridge in the West Midlands in 2005 resulted in the direct loss of almost 6,000 jobs with potentially serious consequences for the local economy. Following on from an NAO report (HCP 961, session 2005-06; ISBN 0102937206) published in March 2006, the Committee's report examines the support provided to MG Rover by the DTI before and during the Company's collapse, and the subsequent response by various agencies to mitigate the impact of the firm's closure on the local community. Findings include that the cost to the private sector and former employees of MG Rover's collapse may exceed GBP 600 million, although without the efforts made by local agencies to help the local economy diversify in the years prior to the Company's collapse, the final impact would have been worse. Although, the DTI responded effectively where it had contingency plans, for example by arranging the immediate support for former employees following the collapse, there were serious gaps in other areas, such assisting a sale if MG Rover went into administration. The local agencies did well to respond quickly and effectively in the immediate aftermath of the Company collapse.The DTI should disseminate the lessons learned from diversifying the West Midlands economy to other regions or public bodies with a responsibility for supporting the development of local economies.
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