MP attacks handling of bids by Corus

Mar 11 2010 By The Journal

CORUS' handling of buy out bids for the Teesside Cast Products has been attacked by Redcar MP Vera Baird in a letter to its parent company Tata Steel.

The company currently has three buyers interested in taking over the Redcar plant where 1,600 workers are facing redundancy as it is being mothballed after a consortium of buyers pulled out last May.

Mrs Baird has written to the Tata vice-chairman Balasubramanian Muthuraman saying that Corus CEO Kirby Adams has lost the support of the people of Teesside.

In the letter she said: "Even though I have personally defended Corus in respect of the time it is taking to bring one of these deals to a conclusion, others, including the influential North East Select Committee, have been critical of Corus.

"The report of this highly respected committee is very critical of the Corus CEO Kirby Adams for not appearing before it and, instead, answering questions only by letter."

Her comments come days after a select committee of Labour MPs tore into the steel company for mothballing the plant and Mr Adams was criticised for not attending the committee in person.

She echoed the committee in asking for assurances that all was being done to find a buyer for the TCP and that everything was being done to keep the plant in good working order until a buyer takes over.

A Corus spokesman said the company had not yet received the letter but following Monday’s committee report the company said it was still intent on finding a way to reopen the plant as soon as possible.

Corus said then it was "disappointed" with the emphasis on Kirby Adams when the report contained more important conclusions.

And it insisted the issues had been at the top of Corus's agenda since April 2009, adding it spent 10 months and lost £150m trying to find a "credible" partner for TCP and always kept the highest levels of Government advised.