The British government yesterday tried to head off criticism of its record on manufacturing by launching an "automotive academy" with £15m of public funds.

The move came as it found itself under renewed attack from Sir Bill Morris, the outgoing general secretary of the Transport & General Workers Union, for allowing a "haemorrhaging" of jobs.

The academy - to be based in the West Midlands - will establish a curriculum to develop courses for shopfloor workers and senior executives.

The British car industry em ploys over 250,000 people and is exporting more vehicles than ever although much of it is through foreign firms such as Honda, Toyota and Ford.

Speaking at the launch of the academy in London, Patricia Hewitt, the trade and industry secretary, said: "This academy will train the industry to have cutting-edge skills to create cutting-edge products ... It has every chance of being a success because it will take the best training that exists, enhance it and make it easier to access."

The Society of Motor Manufacturers and Traders welcomed the initiative. " The automotive industry is vital to the UK economy but we can only stay on top if we make sure that our people are trained to the highest standards to equip them for the future," said chief executive Christopher Macgowan.

The move was also welcomed by Amicus and Dave Osborne, the automotive national secretary of the TGWU.

But the launch coincided with a broadside from Sir Bill over the loss of 17,500 jobs as he opened a new union office at Burleys Way in the east midlands. "Instead of joined up government linking public investment and public procurement, we are witnessing the haemorrhaging of UK manufacturing jobs," he said.