A leading automotive expert at Coventry University has welcomed
the publication of a report looking into the Government's handling
of the crisis currently facing Britain's auto industry.
Professor David Bailey from the university's Business School
said:
"Today's report by the Business and Enterprise Select Committee
is hard-hitting in its criticisms of the government in its support,
or lack of, to Britain's auto industry.
"The report is carefully balanced. On the one hand it is
optimistic in noting that Britain's car industry is world class,
flexible, productive, globally competitive and has huge strengths
in the premium brand sector but on the other hand it highlights the
severe pressures the industry is now under and warns of the danger
of suppliers going under and the knock-on effects elsewhere in the
economy."
In the report, the government is pressed to show greater urgency
to help the industry not just support for individual firms like
Jaguar Land Rover but for the industry as a whole.
The Select Committee, which consists of a cross party group of
MPs, have criticised ministers for suggesting that support for the
industry might be available but not actually delivering it.
In particular, the Committee expressed concern about the lack
of coherence to government policy and highlighted a series of
"shortcomings" in the automotive support package unveiled back in
January.
Professor Bailey added: "The committee noted that 'not one
single penny' has yet been advanced through that auto support
package six months on and are astounded it had taken so long to
arrange funding for Jaguar Land Rover for its future investment in
new technologies.
"Indeed, the auto support package was meant to provide support
for long-term investment in research and development, not to be a
long-term application process in its own right."
The committee also criticised the government for its approach on
auto finance. Support has been forthcoming in the US, France and
Japan but so far, not from the UK.
Professor Bailey concluded: "The MPs give credit where it
is due. They note that even though the scrappage scheme was
introduced quite late on there are encouraging signs that it is
proving to be effective. On this at least the government deserves
praise.
"The British government has been slow off the mark and what
support there has been is limited compared to other countries. With
30,000 job losses to date in the UK auto industry, the Government
needs to act now before it's too late."