Car jobs 'could be lost abroad'

New car registrations are down in 2009

MPs have warned the government it risks car industry skills and jobs being lost to other countries if it does not get its strategy right.

They also criticised the government's automotive assistance programme which has yet to give out any money.

The government argues that it is working with several companies, but must ensure the taxpayer is protected.

Union boss Tony Woodley said good people lost their jobs while government departments "shuffled paper".

The Business and Enterprise Committee report also suggested there was a perception that the government's policy in this area lacked coherence.

So far in 2009, new car registrations are down by more than a quarter.

Smaller firms

The automotive assistance programme gives a government guarantee to loans taken out by the automotive industry so the lender knows most of its money is safe.

But the minimum size of the loan is £5m and the business and enterprise committee report argues this needs to be lowered urgently to £1m so that smaller companies can be helped too.

Tony Woodley, Unite joint general secretary, said: "This report hits the nail on the head. More than seven months on from the establishment of the automotive assistance programme, we are yet to see a penny paid out to car and components companies.

"The committee says it is astounded that it is taking so long to help to companies to save jobs and skills. Sadly, we've gone past being astounded and are beginning to get very angry that good people are losing their jobs while government departments shuffle paper."