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| 'We want access to credit, not bailout' |
| Press Trust Of India / London May 11, 2009, 00:47 IST |
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Criticising the British government for ignoring the manufacturing sector, industrialist Ratan Tata said he was not asking for a bailout but only a “facilitation of access to credit on commercial terms” for his businesses in the UK.
In an interview published in British newspaper Sunday Times, Tata said: “We’re responsible for the fortunes of the company, but this is a bone-dry situation in terms of access to credit. Nobody can operate on that basis unless you have large cash balances, which we don’t. My concern is that the government doesn’t appear to care about manufacturing.”
The comments follow reports about the UK government denying financial aid to Jaguar and Land Rover, the iconic car brands acquired by Tatas last year.
“I would like to see the British government playing only one role. It controls the banks, and all I seek is the facilitation to provide access to credit on commercial terms. It’s not a bailout,” Tata said.
Tata is one of the largest inward investors in Britain. Besides JLR and Corus, which together employ about 40,000 people, the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and IT.
Tata Motors bought Jaguar Land Rover from Ford in April 2008, paying £1.15 billion. Tata, having failed to raise bank loans to ease JLR through a disastrous slump in sales, has asked the government for financial assistance.
Sales at JLR has slumped due to recession and a dearth of automotive finance. “In April, Jaguar’s UK sales were down 21 per cent from the same month last year, an improvement on recent months. Land Rover’s were down 47 per cent,” the Sunday Times added.
Going forward, Tata said: “... I would like to see us coming out of the recession with these new products (E-type and fuel-efficient hybrids) in place. What would be sad — remorseful —if the meltdown continues and we can’t get access to funds. The first thing that will happen will be that these projects will go on hold, and we will come out of the recession just as we went in.”
“I had hoped we would come out of it as a new company,” he added.
Tata, however, said British Prime Minister Gordon Brown was “a very sincere person. I have to believe he is genuine in his desire to see British industry supported. There hasn’t been implementation of that desire.”
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