The package of measures includes funding for affected workers to train at local further education colleges and tailored support for them via Jobcentre Plus.
There will also be finance to assist workers if they want to start up their own business and for local small businesses to grow and create jobs.
The Government is also considering proposals put forward by the local taskforce being led by Amanda Skelton, Chief Executive of Redcar and Cleveland Borough Council. Business Secretary Sajid Javid and Business Minister Anna Soubry will both be attending a meeting of the taskforce in Redcar today.
Business Secretary Sajid Javid said: “This is an extremely difficult time for the workforce at SSI and the local community. The package we are announcing today will provide important support to workers and the local economy. Across government we will continue to focus on providing assistance where we can.”
After weeks of discussions the Government can also confirm that the company made a last minute and unrealistic request for the taxpayer to make an open-ended funding commitment to maintain the coke ovens in Redcar.
The Government cannot accept the request. On the basis of the limited business case it was given, the Government has no confidence that this is a realistic proposal for taxpayers to support. In addition, it would be illegal and in breach of state aid rules. The company has never made a profit and the board’s proposal would do nothing to address the huge debts outstanding to local suppliers and other parties.
The Thai parent company of SSI UK has also posted on its website that it has entered “rehabilitation” under Thai law. Clearly liquidation in the UK is a risk.
The Government will be holding a steel summit on Friday 16 October. Steel companies, MPs, trade unions, Welsh and Scottish Government representatives will be invited to look at how best to work together to find solutions to the challenges being faced in the current very difficult global market conditions. It will also start mapping out a path to a sustainable future for the industry.
