Kraft on the rack over jobs

MPs will this week accuse Kraft, the US food group that bought Cadbury, of lying about promises to protect jobs.

Kraft executives will appear before the Commons business, innovation and skills committee to face questions over its decision to close the Somerdale plant near Bristol with the loss of 400 jobs.

Kraft backtracked on repeated pledges made during its takeover bid for Cadbury that it believed it would be in a position to keep open the plant — even though Cadbury had already said it would be shut.

City sources close to Kraft have always insisted that its pledges were made in good faith but proved to be unrealistic once it learnt more about how much of the plant had already been closed down by Cadbury.

Lindsay Hoyle, Labour MP for Chorley and member of the committee, said: “Kraft needs to come up with a credible explanation for its actions. They shouldn’t make promises they can’t keep.”

Matthew Oakeshott, Treasury spokesman for the Liberal Democrats, said: “Kraft has tossed away promises on jobs like a torn up sweet wrapper. It has treated the British parliament with contempt.”

Peter Luff, Conservative MP for Mid Worcestershire and chairman of the committee, will put further pressure on Kraft to make “clear and unequivocal pledges” about the future of Cadbury in the UK. The committee will ask for specific assurances about the future of Reading Scientific Services, an independent food research company owned by Cadbury, which employs about 220 people.

The UK Takeover Panel is also carrying out an investigation into comments made by Kraft during the bid process.

Jenny Davey, The Sunday Times 14-03-2010