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Labour MP accuses ministers over Redcar steel mothballing

Richard Moss | 15:48 UK time, Tuesday, 16 February 2010

Redcar steelworkerThe decision by Corus has angered many - none more so than Stockton South MP Dari Taylor.

She's angry with Corus, but also with her own government.

She accuses it of failing to support the workers and the community.

She even says Corus should have been nationalised until a buyer could be found.

Her central allegation is that ministers have stood by while the plant's ultimate owners Tata asked for an overinflated price for the Redcar plant.

In a news release she says: "My government has stood by and let this happen, despite reassurances that it was taking action. Its action should have been to nationalise Corus Redcar until a buyer could be found."

It's pretty emotive stuff, though she seemed to have tempered her attacks on the Government a little by the time I'd intereviewed her.

Instead much of her focus was on criticising Corus.

But is the mothballing of the plant the end for hopes of saving the jobs of the 1,600 workers?

Not according to the Redcar MP, Vera Baird.

She accepts the decision is bad news and will begin to lead to the redundancies that Teesside has dreaded.

But she told me the efforts to find a buyer for the site continue.

She says Corus have told her that even after mothballing, it would only take a matter of days to get the furnace up and running again if a buyer could be found.

Indeed she's been told that the furnace will be treated "like a baby" to ensure that a sale will still be possible.

But some are asking how much effort Corus is making to sell the site.

The firm has decided to keep the cokeworks open in Redcar, and with coke prices high it looks to be making money for them.

So Dari Taylor is suggesting the the company might not be that enthusiastic to sell as by doing so it would have to sell the coke plant too, and lose out on the money they're earning.

Corus though flatly deny that and insist they would be prepared to sell lock, stock and barrel tomorrow if the right buyer came along with the right offer.

And Vera Baird says there are still several groups interested in the site.

According to the Redcar MP, they include steel customers and a consortium headed up by a businessman with local connections which includes people with expertise in the steel industry.

The Government are talking to those buyers and Vera Baird says they are prepared to help if a deal can be done.

Of course, all this continued uncertainty adds to the agony for the workforce.

For the moment they are still being offered at least some hope of redemption, but I suspect their reserves of hope and optimism are probably exhausted.

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