LDV handed a £2.5million council lifeline

Mar 28 2009 EXCLUSIVE By John Griffin

Coun Whitby said he was also speaking to other West Midland councils and public sector bodies to urge “tactical support” for the factory and was investigating help with wage overheads through the Learning and Skills Council.

And in a letter to Mail editor Steve Dyson, he said: “I remain fully behind the Birmingham Mail and Post’s campaign to support the West Midlands automotive sector, and hope that you will do what you can to bring the weight of that campaign to support the plight of LDV.”

The council package was warmly received by LDV, whose PR and Marketing Director Guy Jones said: “This is extremely positive news. It is very welcome and we are very glad to see that the city council has acted in support of the jobs here at LDV.

“We would now be looking to work with Birmingham City Council in every way possible to exploit the relationship and ensure that we return value for money for the city of Birmingham.”

Former Northfield MP Roger King, who recently called for the council to stump up a £10 million loan to keep LDV afloat, said: “This has to be welcomed. I am delighted the council has got its act together to make a very positive contribution to the future of the company.

“The £10 million I was seeking was on the basis that they needed £25 million or so but they have since downgraded the sum – pro rata, this is more generous than giving £10 million.”

And a spokesman for Birmingham Chamber said: “This is very welcome news. Any moves that can keep LDV afloat and jobs intact while new owners are being sought can only be good news for suppliers and the local economy. The city council’s initiative is one that is to be applauded.”