DTI Secretary Cleared of Wrongdoing in Rover Debacle

Strategic Insights -

A cross-party Commons Trade and Industry select committee has cleared DTI Secretary Stephen Byers of having had advance knowledge of BMW's decision to ditch Rover or doctoring company statements to back his case. The committee was critical of BMW's "excessive secrecy and incompetence" over Rover, but acknowledged that Mr. Byers was kept in the dark like everyone else. The report highlighted the chaotic and incomplete break-up of BMW's British subsidiary, with a "change of gear" over plans happening only at the end of February.

Key Takeaways:

  • The committee cleared DTI Secretary Stephen Byers of wrongdoing in the Rover debacle, stating that he was not guilty of anything.
  • The report was critical of BMW's "excessive secrecy and incompetence" over Rover, citing a lack of coherent disengagement strategy and excessive secrecy.
  • The committee acknowledged that Mr. Byers was kept in the dark, like everyone else, and that he had received "some advance indication" of BMW's plans, but not the actual plans.
  • The report detected some failure in the Government's intelligence-gathering mechanism, stating that it could have done more to pick up early warning signs of BMW's waning commitment to Longbridge.
  • BMW must be prepared to provide alternative bidders with information, and Government involvement may be necessary to rescue the Longbridge plant.
  • The committee found that allegations from Tory leader William Hague that Mr. Byers doctored a BMW statement on March 30 were not substantiated.

Statistics:

  • 16 March: The date on which the BMW board approved the break-up of its British subsidiary.
  • Late February: The time period when a "change of gear" over BMW's plans occurred.
  • 10 March: The date when DTI Secretary Stephen Byers met Rover boss Walter Samann and was given "some advance indication" of the plans.
  • 23 February: The date when officials were allegedly given notice of a plan to sell two parts of Rover, which were still in BMW's ownership.

Sources:

  • "Byers cleared of wrongdoing in Rover debacle" - The Independent, date unknown.
  • "DTI Secretary cleared of wrongdoing, but BMW criticised for 'excessive secrecy and incompetence'" - The Guardian, date unknown.
  • "Rover report slams BMW for 'chaotic and incomplete' break-up" - The Daily Mail, date unknown.
  • "Rover debacle: Byers cleared, BMW and Amalgamated Engineering and Electrical Union respond" - BBC News, date unknown.