blame for delays to a scheme to give liquidity assistance to car
finance firms.
Mandelson implied yesterday that the Bank of England and HM
Treasury were to blame for the lack of progress on announcing and
implementing a scheme to give financial liquidity assistance to car
finance companies.
Mandelson told the BBC: “I wish that our discussions with the
Treasury and the Bank of England […] had gone quicker than they
have.
“But the discussions are nonetheless making progress and I hope
that it will be possible for us to help those car financing arms,
because that goes hand in hand with our other efforts to boost this
market.”
Go deeper with GlobalData
He made his comments after a motor industry ‘summit’ to
discuss state support for manufacturers and finance
companies, held on Wednesday.
Following the meeting, Sue Robinson, director of the RMIF’s
National Franchised Dealers Association, said she was disappointed
by the outcome of the summit. “Today’s Business, Enterprise and
Regulatory Reform seminar on the automotive industry failed to
address the issues facing the retail motor industry.”
She said a scrappage scheme was urgently needed, and that
“[other] measures that could provide support for the industry also
need to be considered.”
The Bank of England’s statement said that it was “puzzled” by
his comments, and added: “It is not the role of the Bank to provide
sector-specific support. That is clearly and properly a matter for
the government.”
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By GlobalDataShadow business secretary Ken Clarke said today that in his
view, it is not the Treasury or the Bank of England which is
holding up the process of giving a liquidity boost to car finance
companies – instead, he commented, “it is Alistair [Darling]” who
is the real obstacle to progress.
Clarke said that support for car finance providers had been
advoctaed by the Conservatives “for a long time now”, as “the car
finance companies, like everyone else, are finding it difficult to
raise the money to offer the credit”. He said the government should
“guarantee part of the loans” for car financiers – as it is doing
for the banks.
