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LABOUR ACTS TOO LATE TO SAVE RURAL BUSINESSES - WILLIAMS
January 28, 2009 3:56 PM
Roger Williams, Liberal Democrat MP for Brecon and Radnorshire and Shadow Secretary of State for Wales, has criticised the Government for not acting quick enough to save rural Welsh businesses.
Lord Mandelson, Secretary of State for Business Enterprise and Regulatory Reform, announced support for the automotive trade and car dealerships but this has come to late to save J V Like from going into administration.
Mr Williams said:
"The announcement is too little and too late to save one of the most iconic businesses in rural Wales, which has supplied vehicles for more than 35 years.
Responding to Lord Mandelson's announcement in Parliament yesterday, Mr Williams said:
"It is no good supporting car manufacturing when the people who sell them are going out if business. The government must support lenders to those who purchase cars in order to keep the trade going."
Mr Williams added:
"I will be contacting the administrators of J V Like with a view to ensuring that the business is secured as a going concern."
NOTES:
During the Statement, Mr Williams made the following intervention:
"It is difficult to overemphasise what a parlous financial state many car dealerships find themselves in. One in my constituency reports sales of new cars dropping from more than 30 a month to less than 10 a month. If those businesses fail, all other measures will count for nothing. I urge Mervyn Davies to get on and do his work as quickly as possible but also to investigate other ways to support those businesses, such as the relief of business rates. They have to be paid every month regardless of the level of business, which is causing the business great distress."
In his response to Mr Williams, Ian Pearson MP, Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, said:
"I have heard what the honourable gentleman has said. As I have said, we want Mervyn Davies to be actively engaged and deal with the matter with the urgency that is required. The hon. Gentleman asked specifically about the dealership network, in which many small businesses operate. He will be aware of the business support scheme operated by HMRC for companies with particular difficulties. There are more than half a million people in the dealer network at the moment. Some of them are tied to big companies but some are small and independent, and we must ensure that they are aware of the range of support on offer. I sometimes think that when we come to the House to announce new initiatives, we need to do more to communicate the vast range of initiatives that are available out there. We are looking to do more in that area as well."
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