Gordon Brown's role in the collapse of MGR

ace1977lan · 31st May 2008, 22:54

Just read this on AR Online.

THE group of controversial Midlands businessmen blamed for the collapse of MG Rover are to fight to clear their names in a campaign they believe will reveal the role played by Prime Minister Gordon Brown and one of his senior advisers in the demise of the car company.

MG Rover was Britain's last major independent car maker. After its spectacular collapse in April 2005, the Department of Trade and Industry (DTI) called in inspectors to probe the affair. The report, by BDO Stoy Hayward and a barrister, is not expected to be published until the end of this year at the earliest.

Frustrated at the delay, the so-called Phoenix Four are discussing with advisers and lawyers a strategy to uncover what happened in the final days of MG Rover. It could be embarrassing for Mr Brown, the then Chancellor, and Shriti, now Baroness, Vadera, then one of his most powerful advisers at the Treasury. Both are expected to be targeted to find out what they knew about Rover's last few days.

John Towers, Peter Beale, John Edwards and Nick Stephenson were vilified for their role in the collapse. The unions said they had taken tens of millions of pounds out of the company while 6000 workers lost their jobs.

The men, who have refused to discuss the collapse publicly, may break their silence to highlight how some people in Government killed off Mr Towers' plan to save Rover and sell it to a Chinese company. A number of Freedom of Information requests are being prepared by lawyers, and the Phoenix Four have recruited a public relations team.

Jack Irvine, chairman of Media House, instructed by the Phoenix Four, said: "We want to know a bit more about the role of the Treasury in the final days, and whether Mr Brown and Shriti Vadera [now a Government minister] were involved in taking decisions on Rover's future. We would particularly like to see some email exchanges. It seems odd now, that Gordon Brown can throw billions of pounds at Northern Rock, but it would have taken only a few million to save Rover."

A Department of Business and Enterprise spokesman said: "The inspectors, who are independent of the Department, are seeking to complete the report as quickly as possible, with due regard for the fairness of procedures, and to the thoroughness of the task."

JohnDotCom · 31st May 2008, 23:23

Now this could be Interesting,
............But to late!

GreyGhost · 1st June 2008, 09:49

I would very much like to know the truth of the matter. I think we all know that government could have intervened to save MGR had they thought there was a pound in it for them.

tourerfogey · 1st June 2008, 14:32

There was no reason why the government should have injected cash into MGRover anymore than it should inject cash into any other privately owned company in financial difficulties.

The situation cannot be compared to the Northern Rock episode - the government were backed into a corner on this as allowing NR to go bust would have caused too much fallout in the banking Industry and to the financial 'integrity' (for want of a better word) of the UK banking system in general, with catastrophic effects to the British Economy as a whole.

MGOracle · 1st June 2008, 15:55

Looks more like scapegoating to me.

Through a myriad of poor decisions and wrong direction MGR went bust.

The government weren't to blame. MGR and their general poor image was.

If only they'd marketed their cars better. Well, the 75/ZT at least.

The government were under no obligation to 'save' them.

Pete · 2nd June 2008, 17:09

I suppose this is the next chapter of their wish to blame anyone but themselves for the debacle they very much created. They brought back Kevin Howe and stuck him in charge for heaven's sake - if that doesn't illustrate their appalling decision making skills then nothing does.

I particularly like the spokesman saying that MGR only needed " a few Million". Rather a glib comment and not exactly accurate either.

31st May 2008, 22:54	#1
ace1977lan Loves to post MG ZT CDTI 135 + Join Date: Apr 2007 Location: Preston, Lancashire Posts: 295 Thanks: 0 Thanked 0 Times in 0 Posts	Gordon Brown's role in the collapse of MGR Just read this on AR Online. THE group of controversial Midlands businessmen blamed for the collapse of MG Rover are to fight to clear their names in a campaign they believe will reveal the role played by Prime Minister Gordon Brown and one of his senior advisers in the demise of the car company. MG Rover was Britain's last major independent car maker. After its spectacular collapse in April 2005, the Department of Trade and Industry (DTI) called in inspectors to probe the affair. The report, by BDO Stoy Hayward and a barrister, is not expected to be published until the end of this year at the earliest. Frustrated at the delay, the so-called Phoenix Four are discussing with advisers and lawyers a strategy to uncover what happened in the final days of MG Rover. It could be embarrassing for Mr Brown, the then Chancellor, and Shriti, now Baroness, Vadera, then one of his most powerful advisers at the Treasury. Both are expected to be targeted to find out what they knew about Rover's last few days. John Towers, Peter Beale, John Edwards and Nick Stephenson were vilified for their role in the collapse. The unions said they had taken tens of millions of pounds out of the company while 6000 workers lost their jobs. The men, who have refused to discuss the collapse publicly, may break their silence to highlight how some people in Government killed off Mr Towers' plan to save Rover and sell it to a Chinese company. A number of Freedom of Information requests are being prepared by lawyers, and the Phoenix Four have recruited a public relations team. Jack Irvine, chairman of Media House, instructed by the Phoenix Four, said: "We want to know a bit more about the role of the Treasury in the final days, and whether Mr Brown and Shriti Vadera [now a Government minister] were involved in taking decisions on Rover's future. We would particularly like to see some email exchanges. It seems odd now, that Gordon Brown can throw billions of pounds at Northern Rock, but it would have taken only a few million to save Rover." A Department of Business and Enterprise spokesman said: "The inspectors, who are independent of the Department, are seeking to complete the report as quickly as possible, with due regard for the fairness of procedures, and to the thoroughness of the task."

2nd June 2008, 17:09	#6
Pete Owners Club Director Rover 75 Join Date: Oct 2006 Location: Sherfield-on-Loddon Posts: 4,872 Thanks: 137 Thanked 996 Times in 444 Posts	I suppose this is the next chapter of their wish to blame anyone but themselves for the debacle they very much created. They brought back Kevin Howe and stuck him in charge for heaven's sake - if that doesn't illustrate their appalling decision making skills then nothing does. I particularly like the spokesman saying that MGR only needed " a few Million". Rather a glib comment and not exactly accurate either. __________________ Follow The Club On Twitter

31st May 2008, 23:23	#2
JohnDotCom * Rover 75 FaceLift Tourer CDTi 170BHP Auto ConnSE 2005 Model Starlight Silver Join Date: Nov 2006 Location: Abergele Posts: 28,735 Thanks: 0 Thanked 6 Times in 5 Posts	Now this could be Interesting, ............But to late!

1st June 2008, 09:49	#3
GreyGhost Banned 180+ Sport Auto Join Date: Oct 2006 Location: Bedford Middle Level Posts: 17,787 Thanks: 0 Thanked 18 Times in 5 Posts	I would very much like to know the truth of the matter. I think we all know that government could have intervened to save MGR had they thought there was a pound in it for them.

1st June 2008, 14:32	#4
tourerfogey Banned Join Date: Nov 2006 Posts: 2 Thanks: 0 Thanked 1 Time in 1 Post	There was no reason why the government should have injected cash into MGRover anymore than it should inject cash into any other privately owned company in financial difficulties. The situation cannot be compared to the Northern Rock episode - the government were backed into a corner on this as allowing NR to go bust would have caused too much fallout in the banking Industry and to the financial 'integrity' (for want of a better word) of the UK banking system in general, with catastrophic effects to the British Economy as a whole.

1st June 2008, 15:55	#5
MGOracle Banned MG ZT CDTi 135+ Join Date: Mar 2007 Location: Cardiff Posts: 1 Thanks: 0 Thanked 5 Times in 2 Posts	Looks more like scapegoating to me. Through a myriad of poor decisions and wrong direction MGR went bust. The government weren't to blame. MGR and their general poor image was. If only they'd marketed their cars better. Well, the 75/ZT at least. The government were under no obligation to 'save' them.