CORUS JOB CUTS SHOULD PUNCTURE BUDGET COMPLACENCY OVER MANUFACTURING DEPRESSION

12.00.00am BST (GMT +0100) Tue 29th Apr 2003

Commenting on reports that the steel producer Corus is planning to cut over 1,000 jobs, with 2,000 more under threat, Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said:

"This latest announcement of further Corus job losses should puncture the complacency in the Chancellor's budget over the depression in manufacturing."

"The collapse in manufacturing has hit the North East hard, and the mood on Teeside this morning is likely to be particularly grim.

"Corus is dealing with factors specific to the uncompetitive British steel industry, competing against cheaper steel from Europe and the Far East, and suffering from the high level of sterling over the last few years."

"The exchange rate has made Britain an unsatisfactory place to do business for steel. But Corus must also look to their management strategy which has seen bonuses for executives while workers are losing their jobs."