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Parliament: Trade Questions - Byers will not bail out Rover

Paul Waugh
Thursday 25 February 1999 19:02 EST
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STEPHEN BYERS, the Secretary of State for Trade and Industry, warned that the Government would not "bail out" Rover's troubled Longbridge car plant with a large cash injection from the taxpayer.

Speaking at trade and industry question time, the minister refused to confirm speculation that he had prepared a pounds 100m rescue package for the West Midlands factory.

More than 14,000 jobs at the plant hang in the balance as Rover's German owner, BMW, decides whether to reinvest in new production in the wake of large losses.

Mr Byers said he believed strongly that the factory had a bright future and his department was prepared to offer financial support to boost its productivity levels, but it was up to BMW to put in the necessary investment.

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