Rover facing collapse

Some sceptics have always considered MG Rover to be doomed. For them, the deal 4 years ago that apparently secured mass production at Longbridge was nothing more than a stay of execution. It now appears that those who harboured these suspicions were correct. Despite generous offers of government help, no car manufacturer wants to touch the ailing company with a barge pole. To do so would be to assume liabilities that far outweigh the attractions of temporary government help.

It is a very sad moment for the West Midlands, whose workshop of the world reputation has long been inexorably declining. Thousands of jobs are at stake. Many people have worked at Rover for years. We should be under no illusions that it would be easy for them to find another job, that pays as much as the car industry. The nature of the employment market has undoubtedly changed, with manufacturing jobs continuing to decline. But not all the jobs in the new economy are quality jobs. Most can be described as ‘Mcjobs’, low paid jobs in the service sector such as catering and retail. Quality jobs require greater skills and in any case are regionally concentrated in the South East. The government can start by offering incentives to the private sector to create quality jobs across England. It can also help by basing public sector jobs in the regions.

With hindsight, it might have been better for BMW to have closed Rover. At least the workers may have got a better deal. Now if it closes, the workers are unlikely to get anything more than statutory pay.