Tata told to speed up discussions

Lord Mandelson said he had not received a response from Tata

Business Secretary Lord Mandelson has urged Indian firm Tata to "quicken the pace" of negotiations over a government grant to help Jaguar Land Rover.

The Midlands-based firm announced 300 job cuts at its plant in Halewood, Merseyside last week after deciding to stop making the Jaguar X-type.

An initial government offer to Tata has been rejected.

Lord Mandelson said he had not received a response to a second offer but Tata said talks were continuing.

Mr Mandelson said: "We're in good discussions with them but I have indicated I would like them to quicken the pace of those discussions.

'Certain conditions'

"They have an offer of government assistance on the table.

"That has to be negotiated, this is taxpayers' money and I have to make sure that taxpayers' money is not only being put in to do the job for which it is designed but that it will also come out again in due course.

"Therefore it has to have certain conditions attached but we've made an offer and we are waiting for a response to that from the company."

Jaguar Land Rover recently launched its new car - the XJ sedan. Industry experts have said its success is very important to the firm's future.

It was designed in Coventry and will be built at its plant in Castle Bromwich, near Birmingham.

The firm said it would seek voluntary redundancies at Halewood following its announcement last week.

The plant will close for three weeks as part of an extended summer shutdown starting in September.