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Battle on to keep HBOS jobs in region
THE fight was on last night to save jobs in Yorkshire amid growing fears the area may be sacrificed to protect Scottish jobs if Lloyds TSB's £12bn takeover of Halifax Bank of Scotland goes ahead.
Last night Yorkshire MPs called on the Government to protect jobs in the region following a controversial statement from Lloyds saying "the management focus is to keep jobs in Scotland".
Lloyds has pledged to keep The Mound in Edinburgh as its Scottish headquarters, but said it is too early to say whether the Halifax headquarters in Trinity Road will be maintained, leaving the thousands of people who work there unclear about their future.
Halifax Labour MP Linda Riordan said: "Halifax is a small town – it would be a disaster. This bank was started in the town and now we have lost the manufacturing jobs our economy is based around finance. It would be unthinkable if Halifax was to lose these jobs."
The protection of Scottish jobs has become a political hot potato after Scottish First Minister Alex Salmond of the Scottish National Party lambasted the 12bn takeover, saying he was determined to protect his country's interests.
Last night Ms Riordan called on Minister for Yorkshire Rosie Winterton, MP for Doncaster Central, to visit the town and fight for the region's jobs.
Later it was announced that Ms Winterton is arranging to meet Lloyds TSB officials and regional development agency Yorkshire Forward on Monday to get "first hand information on the situation".
Keighley Labour MP Ann Cryer has also contacted Chancellor Alistair Darling and said she was very concerned. "It's all right him talking about the importance of HBOS to Edinburgh but what about Yorkshire? Halifax is a big employer in my constituency."
Huddersfield Labour MP Barry Sheerman added: "Alex Salmond can talk all he likes but if you want to see persistent lobbying come and watch what the Yorkshire MPs are going to do to save jobs in Halifax."
Former Halifax Labour MP Alice Mahon joined in the condemnation, saying: "Obviously Edinburgh is important to Alistair Darling as he is an MP there, but I am very concerned about the loss of jobs here."
The merger was announced officially yesterday on yet another dramatic day for the markets.
Afterwards Lloyds chairman Sir Victor Blank denied that Downing Street had insisted jobs in Scotland must be protected if it were to give the takeover its blessing.
"It's too early to make any kind of early commitment about jobs. We haven't done the exercise. We are very conscious of our responsibilities in Scotland – we are conscious of our responsibilities to everyone everywhere. The issue of jobs is important in Scotland and in England."
But Steven Leigh, senior policy advisor at Mid Yorkshire Chamber of Commerce and Industry, said: "People in Halifax will be worried, concerned and possibly aggrieved because statements have been made about jobs in Scotland and nothing has been said about Halifax."
In a Press conference in London, Lloyds pledged its commitment to the Halifax brand, saying it has "a very good future as part of the bigger organisation".
HBOS's current chief executive, Andy Hornby, said it was too early to talk about jobs in Yorkshire, but said he would personally ensure that staff in Halifax and the region were kept "incredibly well informed" of developments.
Sir Victor dismissed analysts' claims that 40,000 out of the combined workforce of 145,000 could lose their jobs. However, tens of thousands are expected to be made redundant as Lloyds has pledged to make savings of 1bn by 2011. Hundreds of branches are expected to close.
Unions have called on Lloyds not to impose any compulsory redundancies.
Yesterday Lloyds chief executive, Eric Daniels, said: "If you look at the history of both Lloyds and HBOS, we are both very concerned about the wellbeing of employees. We care very much about how our staff feel."
MAIN POINTS
Each HBOS share valued at 232p.
Total share capital of company 12.2bn.
HBOS shareholders receive 0.83 Lloyds TSB shares for every HBOS
share.
Existing Lloyds TSB shareholders will own 56 per cent.
Existing HBOS shareholders will own 44 per cent.
Merger likely to become effective at end of 2008 or early 2009.
Lloyds TSB chairman Sir Victor Blank and chief executive Eric Daniels remain in same roles.
Position of HBOS chief executive Andy Hornby is uncertain.
Savings of 1bn predicted by 2011.
New lending for UK mortgages and small and medium enterprises will continue.
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Sunday 12 February 2012
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