TISC PN20 0506

TRADE AND INDUSTRY COMMITTEE

COMMITTEE OFFICE     HOUSE OF COMMONS   
7 MILLBANK     LONDON SW1P 3JA

Telephone: 020 7219 5777/5779

PN 20 of Session 2005-06

PRESS NOTICE

Inquiry into the Government and MG Rover

The Trade and Industry Committee is today announcing an inquiry into the role of the Government in the struggle to maintain MG Rover as an independent, UK-owned volume car maker.

The Committee will concentrate on three areas:

  • The role played by the then Secretary of State for Trade and Industry, Mr Stephen Byers, during the disposal of its MG Rover subsidiaries by BMW;

  • The attempts by the then Secretary of State for Trade and Industry, Patricia Hewitt, to support MG Rover during its negotiations with Shanghai Automotive in early 2005; and

  • The effectiveness to date of the recovery package and taskforce for the Rover workforce and the West Midlands more generally after the company went into receivership.

The Committee will explore whether the Government should have done more to save Rover-or whether it intervened too much;  and whether there are any wider lessons to be drawn on how to help any big manufacturing companies which get into difficulties in the future.

The Committee does not intend to anticipate the DTI inspectors' investigation under section 432 of the Companies Act into the affairs of the MG Rover Group, including Phoenix Venture Holdings Ltd and MG Capital Ltd. That investigation concerns the actions of private companies, which fall outside the remit of the Committee.

The Committee invites written submissions to this inquiry to be sent to the Clerk at the address above by 5.00 pm on Monday 13 March 2006. 

For further information please call the Committee Office on 020 7219 5777/5779.

17 January 2006

ENDS