Following my evidence submitted on 20 March, I wish to add the following submission:

CROSS-DEPARTMENTAL BARRIERS

  36.  There is one area of note which I would like to highlight for the Committee's attention. It concerns the way in which different departments' regulations can cut across each other and get in the way of effective responses to situations like the collapse of MG Rover. One example is the system of Redundancy Payments rules regarding the timing of pay in lieu of notice and protective awards, and the impact of these rules on the payment of Job Seekers Allowances. Other major examples are the detrimental effects which the 16 Hour Rule and the 28 Day Rule can have on the ability of agencies to offer the training and education packages that people need, and on encouraging people who have lost their jobs to take up retraining opportunities.

  37.  It is fair to say that the agencies involved in the MG Rover Task Force worked hard to overcome these problems as far as they could, but I believe some longer term solutions are necessary if we are to address these kinds of problem in future situations. Other members of the Task Force may also like to give evidence on these issues and I know they are a matter of concern to the Trade Unions.

  38.  I raised these issues during the Westminster Hall debate which I secured on MG Rover on 14 June last year. The Hansard for debate is already in the public domain and I would be grateful if you could consider that also as part of this submission to the Committee.

9 May 2006