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Corus Steel

Answer

We have maintained a close dialogue with Corus at the highest level whilst it tries to find solutions that safeguard as many jobs as possible and create new jobs on the Teesside Cast Products site. The Corus Response Group, led by the regional development agency and involving Jobcentre Plus amongst others, enables these bodies to work together to offer the best assistance to those who may be made redundant. I understand they have been meeting regularly with Corus management and contingency plans are already in place. These will ensure that the full range of information, advice and guidance is available to redundant workers to help them with job search skills, advice on self-employment and other relevant issues such as pensions and tax matters. A resource centre has already been set up at the site to ensure that information is readily available to the workers. On 8 December, my right honourable and noble friend the Secretary of State for Business, Innovation and Skills announced over £60 million of investment in the North East to support the region's industrial transition to low-carbon and advanced manufacturing. This has been done with record speed and in full co-operation with local agencies. It will be part funded by One North East and will secure long-term employment in sustainable manufacturing in the region. It combines direct and immediate help for the workers who face losing their jobs at Teesside Cast Products with investment in projects which will help underpin the future economy of the Tees valley. It will create around 3,000 jobs and sustain over 10,000 in the long term. EU state aid rules for the steel industry are stricter than for other sectors and therefore any practical financial measures that the Government could take to help Teesside Cast Products stay open are likely to be declared illegal by the Commission.

Secondary information

Type

Written question

Reference

716 c139-40WA; 967

Session

2009-10

Subjects

Government assistance Redundancy Redcar Teesside Cast Products

Link

View this Written question on www.publications.parliament.uk