By Bob Roberts, Deputy Political Editor, PA News
The Government came under pressure today to use the £22 billion raised from
the sale of mobile phone licences to help save Rover.
General Secretary of the MSF union Roger Lyons said Trade and Industry
Secretary Stephen Byers and Prime Minister Tony Blair were committed to
helping Rover.
But speaking on BBC Radio 4's Today programme, Mr Lyons said there was now a
need for the Government to be "creative" in finding ways of financially
supporting Rover within European Union rules.
He said: "BMW must be induced to do the right thing and Stephen Byers and the
Cabinet do have the £22 billion windfall from the sale of the mobile phone
contracts."
The £22 billion was raised from the sale of licences for the so-called "third
generation" of mobile phones last week.
Under EU rules there are restrictions preventing Governments from giving
national industries an unfair advantage through subsidies.
But Governments are allowed to support research and development and training
schemes with Treasury cash.
Speaking ahead of negotiations between BMW and the Phoenix bid tomorrow, Mr
Lyons added: "A great wave of relief has crossed the Midlands and elsewhere
since Alchemy pulled out.
"Now we have got a situation where there is a serious option and we want
everyone now to have a united resolve to work with it."
The Phoenix consortium hoping to buy Rover Cars was spending today poring
over financial details on the company ready for tomorrow's crucial meeting
with BMW chiefs.
Phoenix, headed by former Rover executive John Towers, was given key
documents by BMW yesterday which it said would allow it to press ahead with
its rescue plan.
Thousands of jobs at Rover's Longbridge plant and at supplier companies in
the region will depend on the outcome of Phoenix's talks with Rover's German
owners.
BMW agreed to meet the consortium after negotiations with venture capitalist
firm Alchemy collapsed on Friday.
Alchemy had been planning sweeping redundancies at Rover and the collapse of
talks was greeted with cheers by many Rover workers.
But BMW has since warned that if a new deal is not reached within a month it
will have no alternative other than to close the UK company, which is thought
to be losing the German firm up to £2 million a day.
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