“MG Rover held an important position in the local economy and local communities of the West Midlands. It was therefore particularly important for the Department, and other public bodies, to be able to respond effectively when its difficulties became clear. This was no easy task. The Department did well to identity a series of scenarios that it might face, working up plans for how it and other public bodies would respond if the Company were to close. The Department’s decision making could, however, have been easier if it had been founded on earlier and more comprehensive contingency planning for other scenarios that could well take place, and in this case did.
“When the Company collapsed in April 2005, the various agencies at local level responded well to meet the immediate large increase in demand for their services. The prompt processing and payment of statutory redundancy pay and social security benefits helped many former employees and their families at a particularly stressful time.”