Jonathan Evans: 'Warning signs were there'

"I am stunned by Economic Secretary Mike German's claim that the Panasonic announcement is 'a bolt from the blue'.

"Rhodri Morgan was in Japan last month and I know that he was given a stark warning about what may be to come."

On Wednesday, Unions and management at the Panasonic plant in Cardiff discussed plans for up to 1,400 job losses.

The Japanese television manufacturer announced on Tuesday that it would be cutting its south Wales workforce by up to half.

Union leaders expressed shock and anger at the scale of the cutbacks.

David Rowe-Beddoe, chairman of the Welsh Development Agency, said his organisation had only been informed about the cuts on Tuesday.

Welsh Assembly economic development minister Mike German said the news had come as a "bolt out of the blue".

'Value producer'

Announcing a partial switch of production to eastern Europe, Panasonic blamed uncertainty over Britain's entry into the euro as a reason for the cuts.

The company also announced a shift away from mass production of domestic appliances to become a "value producer".

Panasonic personnel manager David Fowler also pointed to problems over the market price of electrical goods as a factor in the cutbacks.

The company announced that it would be cutting 700 permanent workers and 600 temporary posts.

Cutbacks: Sony is axing 400 jobs

This latest annoucement brings the total jobs lost in television production to 2,000 in the last six months.

Last week, Sony said it would be cutting 400 jobs at its south Wales plants at Bridgend and Pencoed, with the company refocusing on digital television production.

Mr Fowler said that all 1,800 permanent staff at the Pansonic plant at Pentwyn had been offered the choice of voluntary redundancy and that 1,000 workers had applied for the package.

He added that the redundancy offer would remain open until Friday, when the final 700 would be chosen from across all departments.

"We are moving from being a volume producer to being a value producer," Mr Fowler said.

The redundancies will not come into force until Christmas, when temporary staff reach the end of their contracts.

Production transfer

From 2001, the remaining workforce will continue to produce televisions, microwave ovens, laptop computers, plasma TVs and projection televisions.

All other production is due to be transferred to a Czech plant, which has been open for four years, which currently employs 800 to 1,000 people and where more were now expected to be taken on.

Welsh Assembly presiding officer Dafydd Elis-Thomas said an urgent debate on the Panasonic job losses would take place on Thursday.