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Bailout or small beer?

Andrew Neil | 11:02 UK time, Wednesday, 28 January 2009

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The government took three months to cook up its bailout plan for Britain's beleaguered car industry, then denied it was a bailout -- and left everybody from the Tories to the trade unions somewhat disappointed.

Business Secretary to support the carmakers but the critics think it's not enough. Part of it merely involves British government guarantees to unlock £1.3 billion in loans from the EU for the car industry.

The taxpayer will also guarantee another £1 billion in loans to fund investment in greener cars, which may be good for our future but won't boost car sales now, which is the real problem. There are no plans to increase car sales by guaranteeing or even subsidising consumer loans, which is happening elsewhere in Europe.
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Peter Mandelson announced the deal in the Lords yesterday in advance of a summit today with leading car manufacturers, suppliers and retailers. But union leaders have already declared the package a "massive disappointment" while Ken Clarke, on his first parliamentary outing as shadow business secretary, called it "pretty small beer". We'll be talking to Brendan Barber, the General Secretary of the TUC to see what he makes of it.

Also on today's programme, politicians from all sides are, with increasing calls for the expulsion of four Labour peers accused of being prepared to use their influence to amend legislation in exchange for money. Separate plans to deal with the naughty guys are being drawn up by Labour and the Tories. We'll have the latest.

Guardian cartoonist Martin Rowson will be attempting to draw a flattering "Gordon Brown". Apparently our PM thinks cartoonists make him look fat.

We'll be taking a look at ... are they more about making money rather than keeping our roads safe? Send us your thoughts on that!

And if that's not enough we'll have Rory Bremner here. He's got a to save us all from the downturn. Tune in for that!

Throughout the programme we'll be talking to the Labour peer, Baroness Jay, and the former Conservative leader, Iain Duncan Smith.

All in the Daily Politics from 11.30 till 1pm today on 91Èȱ¬2 -- and later on 91Èȱ¬ iPlayer.

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