Peter Mandelson responds to Auto Industry Summit
The Automotive Assistance Programme (AAP)
Now we have clearance from Brussels for these loans and loan guarantees, the urgent task is for the companies to come forward with their fully worked out applications. Business Department officials are already working with the companies on these applications. They will be holding a seminar next week to bring together industry, banks and the relevant trade bodies to make sure that the application process runs as smoothly and effectively as possible. These schemes will potentially help the whole sector. And Jaguar Land Rover, as a leading force in the industry, is well placed to seek support.
4. Supply chain
Many businesses in the car industry supply chain are benefiting from our support for Small and Medium-sized Enterprises. Since its launch at the start of the year more than 400 loans worth over £40m have been offered through our Enterprise Finance Guarantee to support small businesses. As many as 66,000 businesses have gained agreement to defer payment of tax worth more than £1.2bn. And through the “Business Link” service, Advantage West Midlands already provides a fast response service for small businesses. The www.businesslink.gov.uk website promotes the “Real Help” campaign, the finance support package and the Business Link “Health Checks”.
5. Skills, training and wage support
Skills are vital for this industry’s future. Government has already provided considerable support for the development of skills and training in the automotive sector in recent years, for instance through the Automotive Academy which is now part of the National Skills Academy for Manufacturing. Most recently, following demand from the automotive sector for support under the “Train to Gain” scheme, the budget of £65m has been increased substantially up to £100m.
The case for the introduction of training and wage subsidies has been put to us by the automotive sector and others including the TUC and the Federation of Small Businesses. We are urgently assessing the contribution these proposals could make to providing real help for the industry and the people who work in it.
