A SPECIAL working group is being set up to help find employment and retrain Bromsgrove workers who may lose their jobs at Longbridge-based MG Rover.

The group, which could consist of a recruitment agency, the employment service, NEW College and MG Rover, is being organised by Bromsgrove District Council.

Although the fate of the troubled Longbridge-based plant has not yet been decided the authority is preparing for the worst and wants to help workers who may face redundancy.

A team of officials from the Department of Trade and Industry is still trying to secure a deal between MG Rover and Chinese firm Shanghai Automotive Industry Corporation (SAIC).

They were dispatched to China last Friday after six-month long talks between the two companies collapsed. The government has also offered a £100m bridging loan to MG Rover.

There has also been speculation in the press that MG Rover is on the brink of collapse into insolvency, possibly within days and that SAIC was concerned it could be left with footing the bill for around £400m of pension liabilities and associated redundancy costs if MG Rover went under.

Bromsgrove District Council's economic development officer, Peter Michael, said: "Bromsgrove's economy is no longer as dependent on Rover as it was but a large number of people could be affected if plans to save it fail.

"There are several ex-Rover people within the council who are acutely aware of the potential problems faced by many Rover workers. The council will do its utmost to help these people find new jobs or start businesses."

Rubery Village Business Association chairman John Horwood said: "We hope the MG Rover negotiation problems are just a technical hitch rather than a major problem.

"If not, it will have a profound effect on Bromsgrove and Rubery. From house prices slumping to shops struggling to keep going. It will have a knock-on effect for everyone in the area, especially those involved in the supply chain."

An MG Rover spokesman said talks were continuing and denied MG Rover was facing insolvency.

MG Rover and Phoenix Venture Holdings chairman John Towers underlined the continued commitment for a successful outcome to the joint venture. He added they had been providing every assistance, including very extensive personal commitments, to enable the Department of Trade and Industry to come to a decision.

For information on help available contact Peter Michael on 01527 881327.