Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the cost of (a) fully mothballing the SSI Steel site in Redcar and (b) safely cleaning up the site to prepare it for redevelopment.

We know the SSI Redcar plant lost over £600 million in over three years. When the company went into liquidation, the Official Receiver bought supplies to keep certain operations, such as the coke ovens, going in the hope of finding a commercial buyer.

Unfortunately, no commercial buyer could be found to maintain operations at the plant. While this was deeply disappointing, with such large losses and debts, and the price of steel produced at SSI expected to stay depressed for some considerable time, it was perhaps not surprising.

It is too early to say what the costs of preparing the site for redevelopment will be. This will depend on the state the site is left in following liquidation, the future use of the site and any private sector interest in it, which could generate value to offset redevelopment costs.

The Government is providing the Official Receiver with the funds and support necessary to deliver a safe liquidation of SSI.