It is reported that UK's MPs will urge the government to pay the wages of Corus steelworkers to keep them from the misery of the dole while rescue efforts continue.
Mr Peter Mandelson business secretary of UK will be told that a wage subsidy scheme, already introduced in Wales, would save the taxpayer up to GBP 30 million money about to be thrown away on unemployment benefits and lost income tax.
The North East Select Committee will also tell ministers to explore alternative ideas, including buying a stake in Corus, or forcing the company to sell valuable land for other industrial uses.
Ms Dari Taylor chairwoman of North East Select Committee and also Stockton South MP said that "We will be telling the Government it must do whatever it takes to keep the plant in business. The cost implications of unemployment for thousands of workers are hideous, let alone the cost to the people themselves. It's time for ministers to recognise that this community has gone through enough."
The call will come when the committee hears evidence, in Redcar, East Cleveland, about the devastating impact of the Corus closure from union and civic leaders, including Middlesbrough Mayor Mr Ray Mallon.
The MPs will throw their weight behind a study, carried out by development group Tees Valley Unlimited, arguing that demand for steel is bouncing back and that Corus is on course for huge profits.
Just as importantly, a two day a week wage subsidy scheme would cost the taxpayer as little as GBP 10 million a year just a quarter of the expected GBP 40 million bill for throwing workers onto the dole. Furthermore, that GBP 10 million to GBP 12 million estimated cost is for a 12 month subsidy, yet there is growing confidence that it would be required for far less time than that.
Ms Taylor said that the five strong committee would make its plea directly to the government when it hears evidence from Mr Nick Brown minister for the north east in the Commons. She added that "If a wage subsidy is what it takes to keep Corus open, then that’s what the Government has to do. It’s a no brainer when you look at the figures. It would not mean nationalisation, because a sale of the plant is still possible. And it would give Corus time before it can take advantage from the rising market that is predicted."
The GBP 48 million ProAct scheme has already been introduced in Wales worth up to GBP 2,000 for every steel and car worker kept off the dole but ministers have refused to extend it to England. A further stumbling block is that Corus has appeared hostile to the idea in the past, but Ms Taylor argues its position may change.
She said that "I am very disappointed because Mr Adams made important statements about the company’s financial performance that we want to question him on."
(Sourced from www.thenorthernecho.co.uk)
