Partner Article

North East 'should back Northern Rock'

Northern Rock said yesterday that it plans to drop about 2,000 jobs and cut its home loan book by half. The job cuts, which account for about third of its staff, will be made by 2011.

Local organisations have rallied around the bank, and are calling on people in the region to do the same. The North East Chamber of Commerce (NECC) said that executive chairman Ron Sandler had taken the difficult decision to scale back the size of the company but that, with support from the region, the bank still had a significant role to play in the North East.

James Ramsbotham, NECC chief executive, said: “Whilst it is disappointing to have these job losses there are many vacancies that currently exist in the skill areas of those most likely to be affected. Skilled and motivated workers such as these will be in high demand and there are a number of NECC members that would be keen to talk with the people affected by this announcement.

“What is important for the long term viability and success of Northern Rock is that the region continues to show its support for an institution that has given so much to the local community and businesses in the North East. “The more the North East supports Northern Rock now, the more Northern Rock can support the region in the future.”

Response Group

A response group has promised to offer help to every Northern Rock worker affected by the losses. The Northern Rock Response Group has been formed to put in place a package of assistance for every affected worker. The group includes One NorthEast, Northern Rock, Job Centre Plus, Learning and Skills Council, Business Link North East, Newcastle City Council, Sunderland City Council, North East Chamber of Commerce and CBI North East.

Alan Clarke, Chief Executive of One NorthEast, said: “All the evidence shows that there is a strong demand in the North East for the skills that many of the Northern Rock workers possess and the vacancies are there to retain as many of these skilled workers in our region as possible. “The response group has the expertise to assist workers to find new employment as quickly as possible. The North East economy is far more resilient than in the past to absorb such economic blows and its broader business base offers new opportunities and hope for these workers.

“It is welcome news that Northern Rock will retain its North East headquarters and will continue to be a major contributor to a North East economy which continues to grow at a rate outstripping UK average growth.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .