Don't hold your breath for the Rover trust fund to pay up
I've been writing today about the MG Rover trust fund, which was discussed in a House of Commons debate led by Richard Burden (Lab Northfield), the Birmingham MP.
You may know that the former Rover directors, known as the Phoenix Four, promised to turn what left of the business into cash to be distributed to former employees, when the carmarker collapsed in 2005.
So far there's been no money, and the official explanation is that the business could not be liquidated while an official government inquiry into its affairs was still taking place.
Now that the inquiry is over - it reported in September - Mr Burden wants the money transferred to the employees' fund as soon as possible.
Fair enough. But let's remember that there is no guarantee there will ever be any money at all.
The corpse of MG Rover has creditors as well as assets. It needs to pay them off first.
Some of the Government's critics have talked up the importance of the trust fund, claiming that the lengthy inquiry into Rover's affairs stopped former employees getting their cash.
But they may be guilty of raising false hopes. I hope former Rover staff receive compensation but I wouldn't assume anything until they have the money in their pockets.
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'Show me the money' as the film quote goes... I can understand your scepticism over whether anything will ever get paid out; afterall it's now 5 years on.
However, these are assets of Phoenix, not MG Rover, and Richard Burden is absolutely right to say that the Phoenix 4 needs to get on with putting those resources - from for example the sale of Studley Castle into the trust fund as they said they would.
He also rightly raises the issue of MGR Capital. If any resources are left in this firm, they should go to the workers and to securing a better future for Longbridge more generally.
About time the funds were distributed including the procedes from these satelite companies. I and many other lost our pension as well as our livelyhood despite trying our hardest to make the company work. The poor management of the Phoenix 5 (includes K Howe)was resposnible for the lack of focus on a new model, they were more intested on cars and money for themselves and their relatives. As with all major crimes, the funds should be siezed and distrbuted to the victims! Common Gordon Brown do the right thing before you leave office. well done Richard Burden for pursuing the culprits.
I can't think of any collapsed business in corporate history which has donated its remaining assets to its former employees. This is without precedence and should be appreciated for what it is rather than used as another stick to beat the directors with - who could just walk away with all the money if they wanted to. As for MGR Capital, its profits - some £23 million -were ploughed into the loss-making car operations to help keep them going, so it could be argued that employees and the community have already benefited. As for Richard Burden and Ian Lucas's comments - well there's an election coming isn't there?
My company went bust a week before Rover
That following week the Pension Protection Fund was launched
This begs a question whether it was done to safeguard the Rover pensions or is that a coincidence?
my pension is still unresolved - 4.5 years on yet Rover workers are guaranteed.
I didn't see my company going bust yet Rover's decline had been on the cards for over 20 years, so stop moaning
you have no public sympathy just because your bosses made a mint - that's what bosses do
Just be grateful you were looked after by the labour government
where does this leave the exrover workers now they need there money