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Nationalisation 'a tragedy for region's economy'
THE nationalisation of Bradford & Bingley would be "tragic" and raise the spectre of job losses in a region already hit by the recent financial turmoil, local figures said today.
Philip Davies MP - whose Shipley constituency includes Bingley and Crossflats where the company headquarters employs just over 1,000 people - said job losses would be his major concern if the company were taken into public ownership.
He said the region was already reeling from the recent announcement of a rescue takeover of Halifax Bank of Scotland, whose retail division is based in Halifax.
Northern Rock's nationalisation had already deeply affected the north east earlier this year, he added.
In August, most of the 1,300 employees made redundant by Northern Rock left their jobs.
"Nationalisation does not guarantee jobs being retained," Mr Davies said.
"If we are honest about it and if we are realistic about it, nationalisation is not going to be the best for jobs."
He added: "It is very sad it has come to this. The first thing is the Bradford & Bingley has a fantastic heritage in the area and it is absolutely tragic to see it in the state it is in."
The Conservative MP said he would prefer to see a Bank of England-led reconstruction package, as proposed by Shadow chancellor George Osborne, but added: "we are where we are."
"My priority is to try and maintain as many local people's jobs as possible," he said.
He said he would lobby Government to give assurances over B&B's employees as they had done with other troubled lenders.
"The government have moved to protect jobs in Newcastle over Northern Rock," he said.
"Not only would any job losses have a devastating effect on the families concerned, because it is such a big part of the local economy, any job loses will have a huge impact on the economy and the other factor as well is they spend an awful lot on good causes in the community."
B&B supports a number of social projects in the region.
A statement on its website reads: "We support a wider range of community projects in West Yorkshire, including a number of grass roots and community sports projects run by the major professional sports clubs in the area."
The leader of Bradford council, Kris Hopkins, said he was "extremely concerned" that local people would suffer if B&B was nationalised.
He said the city had a "significant number" of HBOS employees who had already seen several weeks of uncertainty.
"We have seen two major banks which are based in the district, or are very close to it, be undermined," he said.
"We have got to think about the local impact.
"A city like Bradford, which has the fourth largest metropolitan district in the country, the impact of losing two banks effectively within its borders, there is a potential for a sizeable impact on the economy."
Mr Hopkins, who is the Conservative councillor for Worth Valley, criticised the Government's handling of the recent financial crises.
"They have sat back after Northern Rock folded," he said.
"(B&B) is about to fall over, it is about to be nationalised and the Government has done nothing and now local families are going to suffer as a consequence of that."
Ann Cryer, the Labour MP for Keighley, said her constituency had people who worked for HBOS in Halifax as well as many B&B employees.
"My constituency in my view is very vulnerable in the present economic climate," she said.
Ms Cryer said she would be "delighted" if B&B were nationalised.
"I much prefer nationalisation to instant death, which is what has happened with some of the American banks and what do you feel if that is your constituency and hundreds of jobs are just gone in minutes?" she said.
"It is just a time-keeping measure to ensure jobs. They just have to put it on hold for a bit to ensure all those jobs at Bingley."
She said she was worried that the area had been overlooked during discussions about the planned Lloyds TSB takeover of HBOS.
"Everybody seems to be concerned with saving jobs in Edinburgh but I am concerned with Halifax," she said.
Ms Cryer said she believed Lloyds TSB may well decide to outsource some jobs to India and was concerned B&B workers could face the same threat.
"I do not want the Government selling off bits of Bradford & Bingley to companies who in turn are moving jobs offshore to India," she said.
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Weather for Yorkshire
Tuesday 22 May 2012
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