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Proceeding contribution from Pat McFadden (Labour) in the House of Commons on Wednesday, 16 December 2009. It occurred during Adjournment debate on Teesside Steel Industry.


Teesside Steel Industry

I am keen to press on if my hon. Friend will forgive me. As a result of Corus's decision, 1,700 people employed directly by the company will lose their jobs, as will a further 1,000 sub-contractors. In the couple of minutes left to me, I want to move on to the questions about the support package that have been asked today. The Government have moved quickly. The Prime Minister and I have both spoken to the chief executive of Corus. The chief executive has stressed that the site is mothballed and that no decision has been taken to close it permanently. Of course, market conditions may change, a new partner may be found and steel could be produced again at the site. I tell my hon. Friend the Member for Middlesbrough, South and East Cleveland that if we can help to bring that about, we will do so. However, those possibilities will not come about easily, and it would be wrong of the Government to stand back and wait for that to happen. The people affected by this announcement need help now. That is why my right hon. Friend the Secretary of State announced a £60 million package of support. My hon. Friend asked some questions about that funding. It includes £30 million of new money from the Government's strategic investment fund, and £30 million from One North East, the RDA, which is to be reprioritised from within its existing resources. Much has been said about low carbon, rightly so, as it is critical to the future of manufacturing in the area. We will use the money to equip Teesside to become part of our low carbon manufacturing base. We know that low carbon is the future. If we are to succeed, we must have a national low carbon capability. It will include £6 million of support for research and development of bio-based materials, £3 million to undertake engineering design, and £20 million for infrastructure development. We will also support the critical Wilton chemicals cluster; we want to see it continue and prosper as part of the low carbon future. The Government are committed to the people of the north-east, and wish to help them recover from this decision. I have seen what can happen when whole communities are left on their own. We will not let that happen in this case. Rarely can a Government have moved so fast and on such a scale in response to a closure, but the people of Teesside deserve it. They deserve our help, and we will stand by them in future.


Secondary information

Type
Proceeding contribution
Reference
502 c306-7WH 
Session
2009-10
Chamber / Committee
Westminster Hall
Subjects
Costs Competition Employment Iron and steel Manufacturing industries Prices Tees Valley
Link
View this Proceeding contribution on www.publications.parliament.uk