However, Coun. David Scott says that a number of questions remain unanswered, and that key decision-makers need to be looking for ways to avoid the shedding of jobs. He said:

"This news is of course particularly unwelcome but it may not be as bad as initial reactions would suggest. We need to be working hard to keep Jarvis jobs in York, whether it be under a new company or even under Network Rail's ownership in the short or even long term. This should be looked at as one option.

"Obviously the business is not in a good way but only time will tell what can be salvaged from it. The administrators going in will provide that information and then different options can be considered. If jobs are to be lost, then the council needs to do everything in its powers to support those who might be made redundant, as it has said it would do in the past when Aviva and others have cut jobs. The Government has rescued the banks and helped the car industry. The rail industry now needs its help".

"But once again, as with the Norwich Union job cuts, this appears to have taken the council by surprise. The Future York report recommended regular contact takes place between the council and major employers in the city, so that these kinds of events are better forecasted and planned for. This appears not to have been the case and the York economy will suffer as a result.

"The current administration needs to take economic development more seriously and not see it as a responsibility distinct from the council. It should be working with employers and getting to grips better with the issues that face companies like Jarvis. Otherwise, as in this case, it acts only in a reactive way to problems as and when they arise".

"I am at a Regional Meeting tomorrow and will raise these issues with the regions MPs and see if an urgent meeting can be convened with representatives of the company, government and the unions".