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Jonathan Walker, Political Editor, Birmingham Post, 26th June, 2009

MG Rover enquiry complete... what will come of it?

The inquiry into the collapse of MG Rover has completed its work – but we may still have to wait to discover what it says.

My colleagues on the business desk are working on a story reporting that the inquiry into the collapse of MG Rover has been completed, at a cost of almost £16 million, four years after it began.

The collapse of the Birmingham carmaker in 2005 directly cost around 5200 jobs according to the National Audit Office, which measured the number of former MG Rover staff who signed on for Jobseekers Allowance. Their 2006 report (a 1.38mb PDF download) is here.

The Government has revealed that a new report setting out the findings of an official inquiry into MG Rover is now in the hands of Lord Mandelson, the Business Secretary, in a Parliamentary written answer to Richard Burden (Lab), the Northfield MP who has been increasingly vocal in demanding its publication.

Business Minister Ian Lucas said in the written answer: “The inspectors delivered their report on 11 June 2009. It will be for my noble Friend the Secretary of State to consider its findings and next steps.”

The steps Lord Mandelson will take obviously depend on what the report says.

The Government has revealed that a new report setting out the findings of an official inquiry into MG Rover is now in the hands of Lord Mandelson

I say there could be a delay before it is published because the report’s findings will determine whether any further action is needed. If it is needed, then the publication of the report could be considered prejudicial to that action.

[Source: Birmingham Post.net]

MG Rover Gervase MacGregor, Guy Newey QC, Lord Mandelson, Richard Burden MP

 Jim Pickard, Political Correspondent, Financial Times, 27th June, 2009

The long-awaited inquiry into the collapse of MG Rover has finally been completed* after four years and nearly £16m of taxpayers’ money.

The Business Department confirmed Friday night that it had received the findings of the investigation into the demise of the carmaker and said the report was in the hands of Lord Mandelson, Business Secretary.

However, a spokeswoman refused to comment on the details of the report, which has been superseded by immediate concerns about the fate of other car plants in the UK. The process has cost £15.9m, she admitted.

Ian Lucas, Business Minister, said in an answer to a private question by Richard Burden, a local MP, that the Government would carefully consider any similar exercises in the future to “minimise” the costs.

I have found it incredibly frustrating that we have had to wait so long for this report. The escalating cost of the inquiry has been a matter of real concern to so many people, including me.” Richard Burden MP

“I have found it incredibly frustrating that we have had to wait so long for this report,” said Mr Burden. “The escalating cost of the inquiry has been a matter of real concern to so many people, including me.”

MG Rover, Britain’s last independent volume carmaker, went into administration in April 2005 with the loss of about 6,000 jobs.

Ministers then offered a “speedy” investigation, including a review of the role of the directors who had bought the company for £10 from BMW in 2000 – the so-called “Phoenix Four”. A report was expected within 18 months.

The lengthy investigation was led by Gervase MacGregor, a senior partner at BDO Stoy Hayward, an accountancy firm, and Guy Newey QC, an insolvency law specialist.

[Source: Financial Times]

[*Editor's Note: The Financial Times' report actually uses the word "published" here and in the headline. However, the use of that word may, in fact, be premature. See the News Blog by Jonathan Walker, the Political Editor of the Birmingham Post dated 26th June, 2009.] 

MG Rover Gervase MacGregor, Guy Newey QC, Lord Mandelson, Richard Burden MP