Labour questioned over lack of help for manufacturing and engineering sector

Jan 9 2009 by Adrian Pearson, The Journal

THE Government last night denied claims it was "picking winners and losers" as Nissan families today face up to the redundancy news.

Questions have already been asked over the Government’s apparent reluctance to offer manufacturing and engineering businesses the same support offered to city bankers.

Sunderland councillor Lee Martin said: "Right now we are in a position where the Government picks winners and losers between banks and businesses and smaller firms.

"And that is wrong. It should not matter if you are a major international business or a local shopkeeper, the end result should be the Government makes it easier not harder to do business."

But last night Minister for the North East Nick Brown said the Government was ready to help Wearside families hit by the job losses.

He said: "We and our agencies are going to do everything we can to help, there should be no doubt about that.

"The Nissan industry in Sunderland has a future and I know we have a responsibility to help all of those who work in it at the moment."

Government Chief Whip Mr Brown said Nissan has been for many years a welcome inward investor in the region and predicted it would continue to be very important to the North East.

Both Mr Brown and local politicians have admitted Nissan has suffered from global forces affecting car manufacturers across the world.

Mr Martin, Sunderland Conservative group leader, said Nissan’s announcement reflected the harsh reality of the economic downturn.

He said: "Virtually every motor manufacturer is struggling to get by at the moment, so in that sense this does not come as a surprise.

"It is horrendous news for the families involved but not unexpected.

"Up until now I think we have all known people who thought the credit crunch was not directly affecting them, and that things were not as bad as they had been hearing.

"Now we will start to see the effects of this on the real world, and unfortunately that means job losses.

"I’m certain that Nissan will eventually bounce back and in the meantime will do what it can to make its businesses ready to grow again in a few years."

Asked if he thought people in Sunderland would be satisfied with help given by the Government, he said there would doubtless be some resentment.