bugeyeandy

BBC NEWS | Business | Government confirms Jaguar talks

Coming cap in hand to the Uk tax payer whilst handing over huge sums to the Italians. Why should we bail out this foreign company?

OllyK

We shouldn't.

lozgti

Don't know why they keep talking about bailing out the 'British Car Industry'

Aren't we just the builders of a few cars for foreign owners? (except Noble)

This is definately so wrong though

PeteBrant

Because there are 15,000 directly affected and many thousands more indirectly affected.

What do you suggest? Just letting them fold?

lozgti

What was the point of Tatas involvement though.

I thought they had lots of money,take on the expense of Jaguar.Government gets rid of a headache

Aren't we back to square 1 apart from Tata probably will do nicely out of not spending their money.And the government now has a headache.

Wonder how much in the way of nationalisation we are going to see over the next few years

ChrisB

Why not? Why didn't/doesn't the Government stop Woolworths folding and 27000 jobs going?

At what size business do you draw the line?

PeteBrant

Beacause you are trying to keep what little manufacturing you have. Ther eis obviously a finite amount of help available, and harsh realities say that Jaguar workers and suppliers will be the main breadwinners in a family, whereas Woolworth workers will more likely be supplementary income.

Of course, there is far more chance of theose 27,000 woolies jobs being taken up in other part sof the retail sector, than 15,000 jobs in the manufacturing secotr (not mention countless suppliers that would go under)


In other words the 15,000 jag jobs would take years to recover. The 27,000 woolies jobs are potentially somewhat quicker to recover, as they are shifted to other retailers.

EddScott

Without question.

A better question would be "What TYPE of business do you draw the line"

If Woolworths was a bank they'd be backed up.

Personally all industries must take the hit without bail out. Overall it will be cheapest way out for all of us. Endless bail out money from the tax payer.

If your happy for your taxes to go to poorly run business rather than poorly run schools and hospitals then OK but personally I don't agree.

unclebuck

Or MG Rover. What has suddenly changed?

The thing is (to me) if Jaguar Land Rover are in trouble why don't Tata bail them out? They are one of the wealthiest companies in the world. Why should the UK Taxpayer be bailing out an Indian company??

I'm fed up with this Government pissing our money up against the wall like there's no tomorrow. It's gone too far and it's got to stop. They're completely out of control.

PeteBrant

And how exactly is taking 15,000 plus people out of paying taxes and putting them on benefits, rather than a guaranteed effective loan from the government saving the tax payer money?

PeteBrant

Take a wild guess

scarey

if Tata's interests in the UK car industry are desperate for cash from the govt then maybe announcing a sponsorship deal with ferrari f1 was not the brightest move

lozgti

C'mon Pete.There has to be a penalty for the X Type.



Seriously though,the real gripe is Tata bought them,they are loaded and indeed,as said above why didn't MG /Rover merit it?

unclebuck

Yes but look who's behind it - 'Lord' Mandelson

Says it all really.

PeteBrant

Beacause we weren't in the middle of a recession and the economy could absorb the jobs lost.

EddScott

How does the government pay it back? Who gets to pay the interest rate?

It in no way saves the tax payer money. Although I see your point about increased benefit costs.

Your effectively continuing the borrowing cycle. A big cash injection will only last so long and then another will be needed and then another. It has to stop, we take the hit and we move on.

bugeyeandy

Nope, I suggest the parent company which is currently swimming in money, digs into its own pockets to help LR/Jag ride out the current economic storm.

I'm sure that isn't too much to ask?

KiwiGTI

Yes. An extra 1-2 million will be unemployed because of the 'credit crunch', why should these people be treated differently.

Leslie

I think it may be more accurate to say"added to the losses from other retailers"

Les

bugeyeandy

For info Tata made $3 billion post tax profit last year and have $25 billion of assets.
I understand these profits will take a hit this year but they're harldy on the breadline!

stuart n

Seems Tata have enough cash to sponsor the Ferrari F1 team next season...

BBC SPORT | Motorsport | Formula One | Cheap car firm to sponsor Ferrari

PaulC72

I think they should deal with it themselves and not ask for help after all thats business for you, if they get bailed out then all other companies that are privately owned should be offered the same help too.

woolies
MG
all the construction companies to name a few who have suffered.

You could also argue the same with the banks why bail out some of them by nationalization why not let them fold and the other banks pick up whats left.

It is way too biased for me.

kingofturds

iTrader: (1)

They let rover rot in hell with over 6000 job losses,whats so special about tata

tanyatriangles

iTrader: (2)

Tata now own Corus, the ex-British Steel that merged with the dutch company, Hoogevens.

They need to cut world production of steel, so what do Tata do?

INCREASE production in India, putting on line TWO new blast furnaces, built with OUR terchnology, then turn down production over here, as it's easier to get rid of British workers than it is Dutch, (thanks, Labour).

Meanwhile Tata have been cap-in-hand toi the government over corus too........they know the government can't afford to let it close

JPF

iTrader: (1)

I agree with you and others on the business side, especially if the parent company has plenty of funds and even more so if they are foreign, its one thing to protect British companies but why foreign ones?. I don't agree though with the banks, if the government hadn't stepped in what would have happened to all our accounts, mortgages etc? what bank would buy another bank at the time? they wont even lend to each other let alone buy each other...in fact does anybody know what wd happen if the banks went down? would the government have to step in then?

amahrap

For good or for bad we live in a capitalist system. When will Govts around the world stop meddling and let the failing businesses die - it's not the end of the world just a readjustment that needs to find it's natural level

PeteBrant

Read above posts.

MikeCardiff

iTrader: (2)

Perhaps in cases like these they should ask all the directors and shareholders who have made plenty of money from the business in the past to be bailing them out ?

Any business not owned by shareholders ( sole traders, partnerships, lots of small husband and wife Ltd companies ) would be expected to reinvest money from profits they had made in the past to keep afloat, so why not apply the same rules to large corporations, many of whom have paid minimum taxes over the years, so not contributing to the economy as much as they should have.

As a small business owner myself, if times get hard I'll expect the government to be giving me a couple of hundred thousand to keep things ticking over.

Devildog

And MG rover wasn't worth saving, tbh.