11:00pm UK, Friday April 15, 2005

The Government has announced a £150m support package for the thousands of workers facing redundancy after the collapse of West Midlands car maker MG Rover.

180 rover worker sign jobs

Plant to be mothballed

Tony Blair and Chancellor Gordon Brown cancelled election campaigning to unveil the rescue package in Birmingham.

They confirmed the circumstances leading up to the company's collapse would be investigated.

Speaking after talks with the Rover taskforce, Mr Blair expressed "real sorrow" for the workers and their families.

"This is a desperate time for the workers at Longbridge and their families," he said.

Earlier, it had been confirmed that talks to save MG Rover had failed and up to 5,000 of its 6,000 workers would lose their jobs.

The news followed the Shanghai Automative Industry Corporation refusal to continue talks about a partnership.

Mr Brown said in excess of £60m would be sued to help diversify industry in the area.

Some £50m would fund the re-training and re-skilling of workers and another £40m would be ploughed into statutory redundancy payments.

Administrators said letters would be posted to workers at the huge Longbridge plant in Birmingham setting out redundancy arrangements.

Special workshops will also be set up on Monday to help 1,000 workers every day in a bid to offer support.

The Longbridge plant will now be mothballed but 600 staff would firstly help to complete about 1,000 half-made cars.

A further 400 staff would be retained at the company's Powertrain engine plant and 25 at MG Sport and Racing.

Adrian Ross, from the TGWU, described the news as "absolutely devastating".