Redcar Steelworks

Lord Stoneham of Droxford Excerpts

Tuesday 13th October 2015 Lords Chamber

[Baroness Neville-Rolfe]

I thank the noble Lord for his comments and for his experience. I certainly agree that we should seek to preserve what is good. There are opportunities in the steel industry: there is HS2, if that happens; there is specialist steel; and we have a sector-led strategy on metals. We need to look forward in those areas and to small business creation in Teesside and in other ex-steel communities.

[Lord Stoneham of Droxford (LD)]

My Lords, can the Minister confirm that £20 million of the £80 million that she says the Government are investing in Teesside is money that would be paid in any event in the form of statutory redundancy in a liquidation situation? Will she further say whether the Government, in the situation that they face in Redcar, would be prepared to consider a government-backed task force, as they did five years ago, to look at the diversification of the economy and would be prepared to consider additional funds to help that community if viable projects subsequently emerged?

[Baroness Neville-Rolfe]

My Lords, on the up to £80 million that is made available, how much goes on redundancy will depend on uptake, but we are clear that it will provide a lot of funds for training and reinvestment in skills—the sort of things that are needed and that are in the hands of the local task force that we have set up and did great work in 2010. The Prime Minister has said that, if necessary, we will look at this again, but we think that the £80 million will make a huge difference to the more than 2,000 unfortunate people who, if one takes all of them together, will lose their jobs—it is very disappointing. On a future task force, we are focusing this week on the summit and on the local task force.