MILLIONS of pounds to help diversify Teesside’s economy must still come to the area despite the likelihood that the Redcar steel plant will sold to new owners, says a Teesside MP.
After the announcement last year of the mothballing of the Corus plant at Redcar the Government announced a £60m aid package to help develop industry and business in the area.
About half that cash has been frozen pending the Government’s spending review.
Last week’s announcement of a Memorandum of Understanding between Corus and potential buyers SSI of Thailand has given rise to questions about whether the remaining £30m from the Tees Valley Industrial Programme would still be available.
Stockton South MP James Wharton is pressing Vince Cable to ensure the cash still comes to Teesside.
The Department for Business, Innovation and Skills has indicated that subject to the spending review process projects will still go ahead.
A BIS spokesperson said: “TVIP - the Tees Valley Industrial Programme - was set up to mitigate the impact when the previous Government announced a £60m package of support funded by BIS and One North East to help the region develop low carbon and advanced manufacturing opportunities.
“£30m has already been committed and last month we announced 14 more projects, including work on a carbon capture and storage scheme and improvements to the rail network from Teesport to the East Coast main line.
“Projects that can be funded before March 2011 will be subject to affordability, value for money and BIS approval if the project is over £5m. Budgets after 2011 are subject to the Comprehensive Spending Review.”
