Downing Street Says

» Wednesday, April 19, 2006

Peugeot

Asked what action the Prime Minister intended to take with regards to the recent decision by Peugeot to close its UK factory, the Prime Minister’s Official Spokesman (PMOS) said that Peugeot had made their decision for the reasons they had set out yesterday afternoon. What helped in this case was that there was a delay until 2007 before that decision was implemented. Clearly however there was concern for those involved and the DTI would work with the local agencies to try and help those affected find new jobs. Those agencies were now rolling into operation.

Asked if the Prime minister shared Alan Johnson’s frustration at dealing with Peugeot, the PMOS said that Peugeot had set out the reasons for their decision yesterday and obviously it was a matter of regret that people were going to lose their jobs. The PMOS felt it was important to point out that some of the reporting on this matter had suggested that this was something which had only affected the UK. In fact jobs had also gone in Spain and France as well. It was important to set that context.

Asked what the response was to claims by the trade unions that these job cuts had only been possible because of the UK’s trade union legislation, the PMOS said that people should look at the rate of unemployment in countries such as France and Germany which were nearly double the UK’s. For instance experts in this field had identified a problem in France known as the ‘insider-outsider’ problem where because jobs were so heavily protected, employers were reluctant to take people on. People needed to recognise that flexibility had benefited the UK economy. We didn’t have the highest employment rates in the G7 by chance, it was due to having a flexible job market.

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» Wednesday, April 19, 2006

Peugeot

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