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Amazingly, despite its professed desire to prevent unemployment and promote British manufacturing industry the government seems determined to do all it can to destroy Jaguar Land Rover. Certainly to destroy an prospect of those cars being built in Brtain.
As the Birmingham Post points out it is demanding Shylock like terms merely for guaranteeing bank loans to help the company develop new models and survive the recession.
Interestingly the Post article points out
Either way, it is apparent to me that there has been serious disagreement between BERR and the Treasury on the whole issue of JLR loan guarantees to the point of even suggesting that Prime Minister Gordon Brown has lost control of the Treasury.
‘The government has decided to block full access to available EIB loans worth £340 million’ and ‘the government has told Tata that it will only guarantee £175 million of the available EIB’ and ‘if this loan is taken up they must immediately pay 15 per cent to the UK government in the form of a charge’ and ‘The Government is apparently demanding significant management control of JLR in that it requires to choose a chairman and to have a permanent seat on the management board’ and ‘Ministers are also seeking a veto over all decisions taken by the company management, including investment, day to day matters and employment issues’.
This attitude is indeed so draconian, so bereft of any serious intent and interest, as to make one wonder just what the Treasury think the purpose the object of their existence and activities really is.
Its hard to see just what the government hope to achieve with all this except to completely alienate their voting base in the Midlands.
Has life in the Bunker ever been so divorced from reality? In another article the post suggests an answer …
…there is nothing coherent about whatever passes for Gordon Brown’s industrial policy.