By Bruce Robbins, business reporter

A GOVERNMENT minister yesterday urged NCR to think again about the planned job cuts at its Dundee factory in the wake of the company’s bumper profits in the last quarter of 2006.

Employment minister Jim Murphy joined Amicus official Gillian McKay in suggesting that the £88 million profit declared by the company might be enough for it to reverse its redundancies decision.

The profits came from the company’s entire operations. The ATM side of the business saw its profits drop by $40 million (£20.5 million) in comparison with the previous year.

Mr Murphy, MP for Renfrewshire East, said news of the profits would have come as a blow to those workers whose jobs will be axed in the summer.

The minister yesterday met members of the rapid reaction group (RRG) set up following the redundancies announcement and emerged wondering whether it might yet be possible to save some positions.

Ms McKay, the Amicus regional officer, said at the meeting that NCR was still in a compulsory 90-day consultation period as far as the redundancies were concerned, and she was holding out hope of a turn- around.

Asked whether he shared her views, Mr Murphy said, “It leaves a sour taste in people’s mouths when a company that’s making such substantial profits think they want to try to put 650 Dundonians on the dole.

“The union is saying think again. If there’s anything they (NCR) can do in the light of these new figures, we should be asking them to but we don’t want to raise false hopes. We plan for the worst.”

Mr Murphy pledged central government funding to help cushion the blow for the workers facing redundancy—but stopped short of revealing a figure.

The minister, whose brief also includes welfare reform, said cash would be made available over and above what might be provided by the Scottish Executive.

He added, “We have to intervene if the worst happens and that will take money. It will be a mix of Government and Scottish Executive funding. Funding to Jobcentre Plus might have to be enhanced.

“On Monday the task force will make its request and we will respond to that. We will listen to any request they want to make about skills, finance and support. We have agreed that’s the best way forward.”

Mr Murphy met city council leader Jill Shimi and economic development convener Joe Morrow.

The minister then entered a separate meeting involving the Rev Erik Cramb, the chairman of the RRG, and other members of the group.