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Hewitt confirms demise of Rover
Patricia Hewitt

Friday's front pages are dominated by the news that MG Rover has gone into administration.

In a move which threatens up to 20,000 jobs in the West Midlands, the independent car maker called in the receivers last night.

Rover's demise was announced by trade and industry secretary Patricia Hewitt and Tony Woodley, leader of the Transport and General Workers Union.

Hewitt said: "This is a devastating blow to all those involved — the workers and their families, the company’s suppliers and the wider community. Our thoughts are with them."

Details of a support package will be announced today and the government will offer help to retrain workers who are laid off.

The end came when production was suspended after a number of suppliers refused to carry on delivering components, and after the breakdown of talks with the Chinese manufacturer Shanghai Automotive Industry Corporation.

Hewitt added: "We have done everything possible, the prime minister, the chancellor, myself.

"We sent a team of officials to Shanghai last week, to try to ensure the success of this deal, and we have, through Customs and Excise, extended help of £25m through a VAT deferral to the company."

Woodley revealed that Tony Blair had spoken for 25 minutes with a senior figure in the Chinese government on Wednesday evening, and added that ministers could not have done more.

However, a statement by MG Rover last night suggested all was not totally lost.

The company said: "The board of MG Rover has asked PWC to accept engagement to advise the board of directors on the current position at the company.

"The management is committed to working closely with the trade unions, the DTI and the West Midlands agencies who can provide support."

Labour is defending six marginal seats in the West Midlands in next month’s election.

The Tories called the news a tragedy for the workforce.

Stephen O’Brien, the shadow industry secretary, said: "This is a deeply depressing day for so many people in the West Midlands and indeed for the country as a whole."

Published: Fri, 8 Apr 2005 07:28:58 GMT+01