This will be a bleak Christmas for those affected by Vauxhall's decision

Trade Secretary Stephen Byers

In a statement to the House of Commons, Mr Byers described Vauxhall's decision to make 2,000 workers redundant as a "bitter blow".

He told MPs that he had drawn up a package to help the affected employees to find new jobs or be trained. He said help would also be given to Vauxhall suppliers and businesses in Luton.

The Conservatives said the redundancies were caused by a motor industry in crisis and excessive tax and regulation by the government.

But Mr Byers stressed that the Vauxhall redundancies were part of a global restructuring by General Motors and were not confined to Britain.

"The challenge now is to provide new job opportunities for the future to replace those jobs lost as a result of yesterday's decision," he told MPs.

"That is why I announced that the government will be taking a number of steps to help those affected and to help the local economy."

Assistance

Under the plans, the employment service will provide Vauxhall employees with advice packs to assist them to get new employment.

"Rapid response units" will be set up at the Luton plant with the aim of providing what was described as "a personal service" for individuals seeking new jobs.

The units will also offer training and a fast track through the benefits system.

Mr Byers said: "These rapid response units have a good record in finding employment for people who have been made unemployed."

He added: "These measures will ensure Vauxhall employees are given the best opportunity for a secure future and that the effects on the local community are reduced."

Everything must be done to help those affected by these redundancies

David Heathcoat-Amory

He said the Regional Development Agency (RDA) was holding talks with the local authority and other bodies on Wednesday afternoon to draw up an action plan to help the local Luton economy.

Mr Byers said the RDA would also help Vauxhall suppliers to diversify and find new business in light of General Motors' decision.

'A bleak Christmas'

He told MPs: "This will be a bleak Christmas for those affected by Vauxhall's decision. We will have to help them.

"By working together I am confident we will be able to meet the challenge of the next 12 months."

Shadow trade and industry secretary David Heathcoat-Amory said: "The ending of car production by Vauxhall at Luton is a terrible blow to the workforce and supplying companies."

He added: "It is a particular blow that these massive redundancies were announced without warning just before Christmas.

"I agree that everything must be done to help those affected by these redundancies to help them to find jobs and retraining where necessary."

But he criticised government policy. "This is not an isolated closure but part of a pattern over past months."

Liberal Democrat trade and industry spokesman Vincent Cable criticised the "peremptory and insensitive" way in which Vauxhall broke the news of the job losses.

His views were echoed by Luton South MP Margaret Moran.

She asked Mr Byers: "Do you agree with me that if General Motors do what they have a right to do, to close a plant, they also have a responsibility to consult with workers and to make sure they take full responsibility for their future and for the regeneration of the local economy?"

Mr Byers replied: "This is not the way, at the beginning of the 21st century, to treat dedicated and hard-working employees."