Iain Wright MP for Hartlepool
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Thursday, May 20. 2010

Mail Column

The news about the immediate closure of Garlands is a devastating blow for the town’s economy.

Over 620 people lost their jobs in the town this week, and the first priority must be to try to give those people and their families clarity about the situation, as well as reassurance that all is being done to assist them. In addition to the job losses in Hartlepool, over 500 people from the Middlesbrough and South Shields areas lost their jobs with the closure of Garlands’ call centres in those areas. It must be particularly concerning for the workers of the company that this was done so quickly, and the redundancies took place with immediate effect.

Garlands was one of the town’s biggest private sector employers, if not the biggest. It filled an important niche in the town’s economy, providing a degree of flexible working for people who needed it because of childcare or other responsibilities. Its recruiting practices meant that many families worked there, and I am concerned that the news this week will mean that some families in Hartlepool will see the immediate loss of two or even three incomes in their households. The work provided a living wage, helped by tax credits, for many people in Hartlepool and meant that a relatively good standard of living could be provided for people in employment, as opposed to sitting on benefits.

As I stated earlier, the task is to provide clarity and stability as much as possible. We are fortunate in the town to have an excellent Economic Development Team in the local council, who will work with other agencies to secure help and support. I have been in touch with the company’s administrators, to see what the precise situation with Garlands is. I have asked many questions relating to the future of the company, such as, what is the state of the contracts which the company had? Could the company be sold as a going concern? Are there any potential buyers for Garlands who would want to keep jobs in Hartlepool and, if so, how can I as the town’s MP help broker such a deal?

I think this is also a key test for the new Government. I have this week contacted Vince Cable, the new Business Secretary, to see what can be done to assist the workers of Garlands. What sort of help and assistance will be given by the new Government to the people of Hartlepool who have suffered such bleak and shocking news? What sort of re-training and offers of support to try to secure alternative employment will be given?

The loss of Garlands has been blamed on the moving of contracts away from this country to countries that can do the service much more cheaply. These issues have profound consequences for our country’s economy and society. Globalisation can have many huge opportunities, but it also seems to me that it offers many difficulties, and that who benefits and who suffers is often based on class. Good working class communities like in Hartlepool are often the first to bear the brunt of jobs moving abroad. I intend to use upcoming Parliamentary opportunities like the Queen’s Speech next week and the Budget next month to highlight these concerns for Hartlepool. But in the meantime, the first priority has to be to get help for the hundreds of people, who, through no fault of their own, have lost their jobs.






Posted by Administrator in Articles at 13:14
 

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