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Lord Heseltine outlines plans to regenerate Redcar steelworks site | Lord Heseltine outlines plans to regenerate Redcar steelworks site |
(about 1 hour later) | |
The former deputy prime minister Michael Heseltine has announced plans to regenerate the site of the closed SSI steelworks at Redcar, North Yorkshire, where 1,700 people lost their jobs last year. | |
The former heartland of Teesside steel has been hit hard by the crisis engulfing the industry, which has been blamed on Chinese firms dumping cheap steel on the European market. | |
Lord Heseltine, who the government asked to encourage investment in Teesside, announced the creation of a mayoral development corporation (MDC) to oversee redevelopment of Redcar. He said the body, part of a government scheme to devolve power to regions such as Teesside, would “create jobs for the skilled workforce affected by SSI’s closure”. | |
The MDC will be overseen by a new mayor, due to be elected next year as part of Westminster’s experiment with regional devolution. | The MDC will be overseen by a new mayor, due to be elected next year as part of Westminster’s experiment with regional devolution. |
The Department for Business, Innovation and Skills said the MDC would build on an existing £80m funding package designed to help Redcar through the loss of its steelmaking industry. | |
“The closure of the SSI site has been incredibly difficult for Redcar and the wider Tees valley and we’re determined to continue our support for the local community,” said the communities secretary, Greg Clark. | |
He described the MDC as the “next step”, insisting local people would be at the heart of the organisation’s efforts to regenerate the area. | He described the MDC as the “next step”, insisting local people would be at the heart of the organisation’s efforts to regenerate the area. |
Redcar’s MP, Labour’s Anna Turley, said she welcomed “any measures which help our local economy to recover from the loss of steelmaking”. But she expressed concerns about the lack of detail on plans for the Redcar site. | |
“The short-term commitment on securing the site is welcome but we have yet to see a clear plan for cleaning up and whether or not [the government] will take responsibility for the vast cost involved which simply cannot be borne by the local authorities.” | “The short-term commitment on securing the site is welcome but we have yet to see a clear plan for cleaning up and whether or not [the government] will take responsibility for the vast cost involved which simply cannot be borne by the local authorities.” |
She added that the MDC would not work unless the government lived up to its promise of greater devolved powers. Turley said the MDC “needs to be backed up with real, tangible powers and funding and not simply be a back-patting exercise by ministers”. | She added that the MDC would not work unless the government lived up to its promise of greater devolved powers. Turley said the MDC “needs to be backed up with real, tangible powers and funding and not simply be a back-patting exercise by ministers”. |
The MDC is the first of its kind outside London and the BIS said it would be a testing ground for the devolution of powers such as regeneration planning and support for businesses. | The MDC is the first of its kind outside London and the BIS said it would be a testing ground for the devolution of powers such as regeneration planning and support for businesses. |
It has been modelled on the London Legacy Development Corporation, which is overhauling the former Olympic site in east London, including plans to build 7,000 homes and create 15,000 jobs. | It has been modelled on the London Legacy Development Corporation, which is overhauling the former Olympic site in east London, including plans to build 7,000 homes and create 15,000 jobs. |
The loss of 5,000 jobs in the UK steel industry since last summer has seen the government come in for criticism over a perceived lack of action to save the industry. But the BIS pointed to its funding for the Tees valley, including a £16.5m jobs fund to help former SSI workers into employment and £16m of support for firms in the SSI supply chain. |
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