Cameron launches attack on Labour over Nissan job losses

Jan 10 2009 by Alastair Gilmour, The Journal

DAVID Cameron has blamed the Government’s failure to get banks lending money as the reason directly behind Nissan’s job losses.

The Conservative leader was in Sunderland yesterday to meet with Trevor Mann, Nissan’s senior European vice-president.

Mr Cameron said he was told that as well as the global financial problems, Nissan was also struggling to cope in a market in which banks will not help potential buyers fund large purchases.

Last night, Minister for the North East Nick Brown accused Mr Cameron of distorting the facts for political benefit.

Mr Brown said: "Cameron has come to the region to sneer at us in a cheap attempt to make political capital at the Labour Party’s expense.

"He does not care about what happens here and is happy to make his visit and clear off again once he has done his damage.

"Nissan themselves have said there are international problems effecting the car industry and the Government is right to step in and help both the full-time and temporary staff being made redundant and the workers effected in the supply chain."

Mr Brown’s strong words were at odds with David Cameron’s who hours earlier had accused the Government of not doing enough to help families and businesses.

Mr Cameron said: "Yes, some of the lack of demand is because of the shortage of credit, car finance has been reduced.

"Yes, there is a big international recession going on and Nissan has been effected by a drop in export orders.

"But we also have to look at what can be done to get money moving here.

"The problem is the credit crunch, the fact that customers cannot get hold of credit. Saving the banks should be one stage towards saving the economy.

"Now the Government has to take up our plan for a loan guarantee scheme, because the VAT cut has just been a pointless waste of money.

"I know Nissan were not particularly impressed by it."

Asked if the Government’s failure to persuade banks to lend money was behind the job losses Mr Cameron said "the link is quite direct".

He added: "The Government has to get it right, because the things we do now should not hamper our recovery.

"So the VAT cut not only was bad for tomorrow because it is extra debt we will have to pay off, but it has not even helped today.

"It was short term foolishness and long-term foolish."