Member Article

Government pledges £80m to support SSI workforce

A government funding package, worth up to £80m, has been announced to provide support to workers affected by the SSI Redcar plant closure.

The package reportedly includes funding for affected workers to train at local further education colleges and tailored support for them via Jobcentre Plus, as well as finance to assist workers if they want to start up their own business, and for local small businesses to grow and create jobs

Full details of the package are being worked through and discussed with local stakeholders. The Government will also consider 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.

A statement from Amanda Skelton, Chair of the SSI Task Force and Chief Executive of Redcar and Cleveland Borough Council, read: “The Task Force met today for the first time since SSI announced plans this week to mothball the steelworks in Redcar.

“We were joined by the Business Secretary Sajid Javid and Business Minister Anna Soubry, which reflects the seriousness of the impact on our local economy. We have a group of very committed and passionate representatives on the Task Force with a shared commitment to do everything possible to help the people and communities affected.

“We are extremely saddened by today’s news that the company is now being liquidated. Our immediate priorities are site safety and putting in place early support for the SSI workforce and others directly affected. The £80m announced today is very welcome and will help us deliver the support needed for local people and businesses.

“Talks are taking place at the highest level to make sure all aspects of the site are managed safely.

“Our urgent focus is on the people affected and we are launching a full scale response on site next week. All the agencies involved are working together to provide a single approach and guidance to the workforce on future job opportunities, advice about financial worries and more general health and wellbeing support for the workers and their families.

“Other members of the Task Force are assessing the needs of the supply chain and developing a wider economic recovery package to support our communities in the long-term.”

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