THE Government is ready to intervene to support Jaguar Land Rover when the time is right, business secretary Lord Mandelson said yesterday.

Speaking to the Daily Post exclusively ahead of the cabinet meeting in Liverpool yesterday, Lord Mandelson said ministers were discussing the issue and the Government was facilitating talks between JLR, banks and investors.

The Business Secretary indicated that some ‘restructuring will be called for on the financial side’ before the Government would intervene. Gordon Brown hailed the city’s success as he brought ministers to the BT Convention Centre for a historic first-ever meeting of the British Cabinet in Liverpool.

The Daily Post, alongside our sister paper, the Liverpool Echo, is campaigning for the Government to offer a loan or loan guarantee to JLR, which employs 2,200 at its Halewood base.

The company has been hit hard by the recession and falling car sales, while the importance of our campaign was highlighted yesterday by Nissan’s decision to axe 1,200 jobs, about a quarter of its workforce, from its Sunderland plant.

Responding to our campaign, Lord Mandelson said: “I am aware of the campaign, I understand where the papers are coming from, I understand the concern.

“The Government has not taken any in-principle decision about this sector.

“Ministers are discussing the matter amongst themselves.

“We have nonetheless agreed that, in particular circumstances where a viable company, an important industry which has an important role to play in our future economic success, is being hit by the credit crunch and loss of demand, but is in a position to pick up and take advantage of economic recovery, the Government may need to consider some transitional bridging assistance.

“But we are not at that stage just yet.”

He praised JLR’s parent company, Tata, for injecting cash into the company.

“I believe in Britain’s industrial future and therefore I am not going to write-off the automotive industry in this country.

“It produces good cars for which in normal times there is strong demand and strong export markets.

“The investment in new green technologies in cars will be essential for our conversion in this country to a low carbon economy.

“The sector has a strong future but it is going through a very bad patch at the moment.

“They are not asking for a bail-out and nor would they receive it. Some restructuring will be called for on the financial side of the company, but that takes time to discuss with the banks and other possible investors.

“The Government will continue to play a role, bringing people together, and urgently getting the discussions under way that need to take place.