THE Prime Minister today stressed the importance of manufacturing to Britain as frantic efforts continued to save the jobs of thousands of workers at ailing car giant MG Rover.

Workers attended a mass meeting at the company's Longbridge plant in Birmingham to hear details of an emergency Government aid package of £6.5m to make sure they are paid for the rest of the week.

Administrators were continuing to study the company's finances today and were trying to revive a possible partnership deal with Shanghai.

Automotive Industry Corporation.

Tony Blair told Labour's General Election news conference in London that manufacturing was "absolutely vital" for the country which was why the Government was investing in science and technology and pledging to create 300,000 apprenticeships.

He acknowledged that the number of manufacturing jobs was in decline but said the economy was strong.

He said Trade and Industry Secretary Patricia Hewitt was in Longbridge today continuing discussions with the administrators, the company and union leadersworkers, and that's why we don't give up

Tony Woodley TGWU

(On possible Chinese deal)

Trade and Industry Secretary Patricia Hewitt said Sunday's loan had been agreed to avoid job losses "while efforts are made to keep the business together".

She said the government had agreed to work with the administrator and unions to develop "with all reasonable speed" a realistic business proposition for Shanghai Automotive Industry Corp (SAIC) and other possible purchasers to consider.

Ms Hewitt's statement was issued with Transport and General Workers' Union (TGWU) general secretary Tony Woodley and Derek Simpson, general secretary of Amicus.

Mr Woodley said earlier that he hoped a rescue deal with a Chinese car-maker could yet be reached.

"In my view, it's the only hope for 6,000 workers, and that's why we don't give up, we don't move away from an opportunity that's as yet still there," he said.

Suppliers 'lay off workers'

"The business logic is still strong, as long as the government now backs the efforts we're putting in with the administrator, and indeed they are doing that."

The Department of Trade and Industry said Ms Hewitt would be prepared to fly to China with trade union leaders.

It said the invitation would also be extended to members of opposition parties.

On Sunday, Conservative leader Michael Howard said the government would have been aware of the situation at Rover for at least a year but had "got involved at far too late a stage".

Liberal Democrat leader Charles Kennedy also said the government should have acted earlier, by assessing and negotiating with the Chinese "much better".

Some of Rover's suppliers are already reducing staff, with hundreds laid off this weekend by engineering firms in the West Midlands and south Wales, despite a £40m support package for suppliers announced by the government.