No state financial aid to prop up Coryton oil refinery
Friday 15 June 2012
The Government will not apply to the European Commission for permission to use state funds to prop up an oil refinery.
The Department for Energy and Climate Change made the decision regarding the Coryton oil refinery in Essex, where several hundred jobs are at risk after Coryton's parent company went into liquidation.
Unions and refinery supporters had pushed ministers to consider putting up cash to keep the refinery going until administrators can find a buyer as its closure would drain £100 million from the economy.
But ministers said overcapacity in the refining industry meant it would not be sustainable to provide government help.
Unite previously called on ministers to follow the example of the French government and give state aid to keep Coryton running until a buyer could be found.
Thurrock council commissioned an economic impact assessment on the closure or change of use of the site, which found it would cost £30 million in wages, £26 million in contractor costs, £6 million in locally sourced materials, £40 million spent on chemicals and utilities, and £5 million in business rates.
A Government spokesman said: "It is extremely disappointing that the administrators haven't been able to find a buyer who could provide investment required to keep Coryton operating as a refinery.
"Departments across Government have looked very carefully at whether or not state aid should be provided for Coryton.
"But we have come to the conclusion that the existing overcapacity in the refining industry and declining demand for petrol mean that it would not be sustainable.
"This would not be a long-term solution either for the taxpayer or for the industry, which will thrive best with open and fair competition.
"If Government did step in to help Coryton, this would be a short-term fix, and it could potentially lead to job losses at other refineries who would be at an unfair disadvantage to Coryton.
"This was a very difficult decision and it is particularly regrettable that people may lose their jobs
"We are working with local agencies and Jobcentre Plus to ensure the right support is in place if it's required to help these skilled workers find new positions.
"The closure of Coryton as a refinery should not have any impact on supply of fuel to London and the South East. There are many other supply points and operational refineries which can be used."
GMB union official Phil Whitehurst said: "The news that ministers are citing overcapacity in the industry is nonsense.
"Coryton supplies 20% of the fuel used in London and the South East of England. It is also a very important hub of employment in the Essex economy and part of our national infrastructure.
"How can the Government just sit back and let 850 refinery workers lose their jobs?
"Most will not be able to get work in the immediate area in their specialised professions.
"The closure will also have a devastating effect on local businesses and the supply chain to the refinery."
The battle for control of Stieg Larsson's £30m legacy
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Kennington bus crash: 32 injured after double decker hits tree in south London
Robin Thicke named sexist of the year 2013
PAs cleared of fraud - and Nigella Lawson left reeling at 'ridiculous sideshow' of drug allegations and public dissection of marriage to Charles Saatchi
Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
Apollo Theatre collapse: Scores injured after ceiling collapses in London's West End
Exclusive: Young people ‘want UK to stay in Europe’: Four in 10 adults aged 18 to 24 are ‘firmly in favour’ of membership, poll shows
Tom Daley ‘is gay because his father died’ says UK evangelist
Iain Duncan Smith leaves Commons food banks debate early
Kiss and yell: Italian protester charged with sexual assault after kissing riot police officer
PM denies two child limit for benefits is part of Tory welfare policy
Anachronistic and iniquitous, grammar schools are a blot on the British education system
- 1 Sun will 'flip upside down' within weeks, says Nasa
- 2 Christmas comes early: Justin Bieber is 'retiring from music'
- 3 Iain Duncan Smith leaves Commons food banks debate early
- 4 Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
- 5 Burglar steals video tapes of child abuse, hands them into police
- < Previous
- Next >
£40000 - £55000 per annum: Pro-Recruitment Group: This Big 4 giant is seeking ...
£35000 - £50000 per annum: Pro-Recruitment Group: Do you have personal tax exp...
£22000 - £37000 per annum: Capita Education Resourcing Permanent Team: This se...
£27000 - £30000 per annum: Capita Education Resourcing Permanent Team: Capita ...