All the economic regeneration planning in the world won’t help when a major international employer folds on your doorstep. So what do you do? Jamie Hailstone finds out When a top employer closes or announces massive redundancies, it can have a devastating effect on the local economy. Councils have to act quickly and decisively to ensure that unemployment figures do not soar and drag the area down. In the last 12 months, several local authorities have been hit by high-profile closures and as a result, tried to pick up the pieces and help residents move on. Birmingham City Council played a key role during the MG Rover crisis, when the company went bust, leaving 6,100 workers at the Longbridge plant without jobs last year. Says the council’s director of planning and regeneration, Clive Dutton: ‘Local authorities have emergency planning for natural disasters and terrorist attacks, but this proved it is also necessary when an area suffers a major economic crisis. ‘We were at work at 10pm when trade and industry minister, Patricia Hewitt, made the announcement that the company had gone into administration. ‘Immediately, the council leader and I went to the BBC studios. The leader was put in front of the cameras, because civic leadership, even late at night, is important. ‘We all went off to Longbridge with the television crews and were there until 2am. ‘The next day, we established a call centre, which operated 24 hours a day, seven days a week, for anyone who had concerns about the closure.’ The call centre proved to be so successful that when a tornado struck Kings Heath in Birmingham in July last year, injuring 19 people, the authority decided to set up another to help local businesses which had been affected. A task force was also established following the closure of Longbridge, involving the council and other agencies in the area. The council opened up neighbourhood offices over the first weekend after the news in April 2005, where staff were on hand to offer advice on debt, redundancy pay and benefit payments. It also published a statement of planning intent to make sure the derelict plant was developed properly. Twelve months on, and Mr Dutton estimates that around two-thirds of the 6,100 people who were made redundant are now back in work or in training. In January, the council announced it was extending the advice services in the Northfield district and the council’s special debt team for another 18 months. Cabinet member for local services and community safety, Cllr Jim Whorwood, says: ‘A major effort went into providing advice at the time of closure, but we need to understand that for many families, problems will continue to arise. For some, savings and redundancy payments have provided short-term financial help. ‘We want to ensure that the council is in a position to offer advice which will help those who need it through this transition period.’ And in February, council staff secured an extra £750,000 for the Community Network South Project from the European Regional Development Fund, which will help people who are still without jobs. Cabinet member for regeneration, Cllr Ken Hardeman, adds: ‘This is an important part of a wider package of measures to tackle investment, skills and the ability of local people to access employment and training at a range of levels.’ Mr Dutton says the council also played a leading role in developing a strong relationship with China’s Nanjing Automobile Group, which has taken over the plant. Production is expected to start again next year, and Mr Dutton says the council is keen to develop strong links not just with the company, but also with the Nanjing region in China. One council which is now actively dealing with the threat of mass redundancies is Ellesmere Port and Neston BC. Car manufacturer Vauxhall announced last month that it would be cutting the number of shifts at the Ellesmere Port plant from three to two, which could mean up to 900 redundancies. ‘The company’s plan is to offer a voluntary package which allows us to avoid forced redundancies,’ says Vauxhall chairman, Jon Browning. ‘For the people at Ellesmere Port, this is by no means indicative of a lack of progress made locally over the past several years. ‘Quality and productivity have shown significant improvements. But the issue of long-term competitiveness remains.’ Unemployment in Ellesmere Port and Neston currently stands at just 2.4%, which is below the national average. The council’s regeneration and economic development manager, Charles Holmes, said the authority called a meeting to plan a response with the Learning and Skills Council, Job Centre Plus, the North West Development Agency, and the Government Office, on the day the redundancies were announced. ‘We are not standing still,’ he told The MJ. ‘It’s a devastating blow to the area and it’s something we are taking very seriously. We are working closely with managers at the plant and we have a timescale for when people will be out of work.’ The council is now working with all the other organisations to produce information packs for workers taking voluntary redundancy, outlining their options, and Job Centre Plus will be providing skills assessments for all those affected. The council has also organised an on-site presence, so workers can have access to information, leaflets and advice. The complicated shift patterns mean the office is staffed by people from the council and other organisations at weekends, and from 5.30am onwards during the week. Says Mr Holmes: ‘The good news is that it puts the plant in a more-competitive state to bid for building the new Astra. ‘We are working with the plant to ensure that its bid will be as competitive as possible.’ And council chief executive, Stephen Ewbank, adds: ‘Ellesmere Port and Neston is a thriving borough with low unemployment and a steady stream of new businesses keen to set up in the area. ‘This puts us in a strong position to help people find alternative employment and make the best use of their skills.’ n