£9m Support Package For Scunthorpe Steelworkers
The Government and Tata Steel have announced an initial support package of up to £9 million to support the local economy and employees affected by the proposed restructuring and job losses at the Scunthorpe steelworks.
A package worth up to £9m has been announced to train steel workers and help local businesses in Scunthorpe.
£3m has been pledged from Tata Steel, and up to £6m from the government.
The company announced 900 job cuts at the Scunthorpe steelworks earlier this week.
The Government has asked Baroness Liz Redfern, leader of North Lincolnshire Council, to lead a taskforce which will identify local needs, co-ordinate with UK Steel Enterprise and consider whether additional support may be necessary.
Business Secretary Sajid Javid said:
“This is a very difficult time for the workforce, so it is important that the Government and the company have come together to support people and the local economy.
“The Government has no intention of simply standing aside whilst the steel industry faces global challenges on a scale unprecedented in recent years. We will do everything we can to help workers and to ensure a level playing field for the industry.
“Tata Steel has a strong track record of creating jobs and supporting local communities right across the country, and its commitment to this package today is to be commended.”
Tata Steel’s UK Steel Enterprise is also providing an additional £1.5 million to support job creation in steel communities around its Dalzell and Clydebridge sites in Scotland. The UK Government is continuing discussions with the Scottish Government about further support.
Karl Koehler, Chief Executive of Tata Steel’s European operations, said:
“I recognise this is a challenging time for the employees affected by the restructuring we announced.
“We are committed to doing everything in our power to support those impacted and through UK Steel Enterprise we will help create new jobs in the affected local communities.
“The UK steel industry is facing extremely challenging circumstances and we welcome the Government’s pledge to match our funding package for those affected.”
Lady Redfern, chair of the local taskforce, said:
“We have been really well supported, with ministers, right up to the Prime Minister and the local MP's, particularly Andrew Percy who has worked with us to create our list of asks from Government.
“The £9 million announced today by the Government and UK Steel Enterprise will provide a significant boost to the North Lincolnshire economy. We intend to work quickly to help people who have lost their jobs to ensure that every element of support is available, whilst at the same time encouraging new businesses to start and grow in North Lincolnshire."
The Community Union told Viking:
“Although any support for steel communities is to be welcomed, both Tata Steel and the government are putting the cart before the horse.
“There is still a consultation process to go through and no worker will be redundant until that is completed. Community is focused on looking at the rationale behind the proposals and all possible alternatives that will save jobs. It will be challenging but all parties should be focused on the consultation.
“Ministers should be looking to protect these quality jobs for future generations in these communities. The government needs to get round the table with Tata Steel and the wider industry and implement the measures required to sustain steel making and retain skills and jobs in this vital foundation industry.
“This contrasts with the hands-on approach that the Scottish government is currently taking which we have welcomed.
“Worried steelworkers will not be reassured by today's announcement, especially given the UK government's track record over the support package for SSI workers, where even now it is unclear what is new money and how it will be spent.
“If David Cameron is serious about building a Northern Powerhouse then let him prove it by taking the action we need to protect steel jobs in Scunthorpe and across the whole region.”