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This would make the UK a less attractive place for multinationals to announce mass redundancies he said

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"This would make the UK a less attractive place for multinationals to announce mass redundancies," he said. "The Government must give manufacturing a higher priority than it has to date."Although a business survey on Tuesday showed UK manufacturing activity was continuing to expand, it also revealed the pace of job cuts was picking up. The profitability of manufacturing has also fallen from 11 per cent in 1998 to 6 per cent by the middle of last year, in large part because of pressure on margins from the strong pound.Official figures also show the north-south divide re-emerging in the jobs market, as unemployment has started to rise in the northern regions while still falling in the South-east. But the TUC points out that redundancies in southern towns such as Luton and Dagenham are also painful because manufacturing provides 30-40 per cent of employment in these towns.The latest unemployment figures show a national increase of 36,000 in the jobless total in the latest three-month period. The long period of improvement in the jobs market, which has brought the unemployment rate to a 20-year low, is now tailing off, according to economists.The pound has weakened recently, but the exchange rate remains high for exporters. A rise in the sterling-dollar exchange rate has partly offset the pound's fall against the euro.The Monetary Policy Committee meets next week, having left interest rates at 6 per cent for the past 11 months.

Two members, Sushil Wadhwani and DeAnne Julius, voted in December for a quarter-point cut.. Tuskar Resources, an Irish oil production company, yesterday said that it planned to go into liquidation, after it failed to resolve a dispute with its Nigerian partner, leaving debts of about $30m (£20m). Tuskar Resources, an Irish oil production company, yesterday said that it planned to go into liquidation, after it failed to resolve a dispute with its Nigerian partner, leaving debts of about $30m (£20m). The company will invite one of its creditors, Allied Energy, to apply to the High Court in Ireland to wind it up. The company fell into trouble after production was halted at its Obe field in Nigeria, in which it has a 40 per cent stake, after its local partner, Cavendish, stopped shipments of oil. The Nigerian company holds the remaining 60 per cent.Gene Manson, Tuskar's managing director, said: "We have no money coming in, so we're insolvent.

If there is no resolution between now and the appointment of a liquidator, we will go bust."Tuskar shares collapsed on the London Stock Exchange, closing down 1.4p at 0.6p. The company alleged that Cavendish had "deliberately" blocked off loading and transportation of oil in Nigeria by withholding necessary documentation This meant Tuskar had no revenues coming in. The Irish company added: "We are surprised and dismayed that the Nigerian Department of Petroleum Resources will not act expeditiously to resolve this matter."Tuskar spent about $20m developing the Obe field and owes a further $11m to Allied Energy. Obe is its only asset.Mr Manson, speaking from Houston, where Tuskar's administrative headquarters are based, said his company was "being held to ransom" by Cavendish. He said Tuskar had made offers to buy out Cavendish but these had not been accepted.Mr Manson said that, in the few days left, Tuskar would continue to try to reach an agreement with Cavendish. Otherwise, he said, the Irish courts would have to pursue Cavendish and try to sell Tuskar's holding in Obe on behalf of Tuskar's creditors.. The US's shock half-point interest rate cut yesterday saw shares in London and other world markets soar early today.

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