Lord Mandelson hints at rescue blueprints for industry

By MoneyhighStreet Staff. Published on December 1, 2008 This post currently has no comments.

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Additional bailouts for certain industry sectors could be launched by the government if economic conditions worsen, officials have suggested.

Business secretary Peter Mandelson said in an interview with the Guardian that, while business leaders "don''t want [the government] to pick winners", a "route map" for rescues might be required by them.

Officials confirmed that such contingency plans were being drawn up, but also emphasized that no specific company was on a "safe" list.

Lord Mandelson also criticised UK banks for being too "conservative" in their lending at the moment - and suggested that their lending practices were irresponsible prior to the onset of the credit crunch.

"The banks have experienced a sharp liquidity crisis," he commented.
"They have lent too much at too cheap a price for too long. But they are now overreacting to that in my opinion in too conservative and restrictive a way."

Lord Mandelson was previously a member of the European Commission and has also served in other cabinet posts including that of Northern Ireland secretary.