Peter Slater: Hard work to do

The Blaenau Gwent area is already an unemployment blackspot - with some of Wales's worst health and social problems.

Around nine per cent of people are unemployed - that figure rises to nearly 12 per cent of men.

Eight hundred jobs are threatened with the closure of Corus's plant in the town - the first redundancies are expected to go in June, the rest by the middle of next year.

Rescue plan

A rescue plan from the unions has already been dismissed this week by local management, with a final decision due at the end of the month.

Local businesses will also suffer from knock-on effects - like Morgans Transport at nearby Cwm, a haulage company which does 70% of its business with the steelworks.

The town is already suffering from the downturn in manufacturing. A worryingly high number of local jobs - 40% - depend on this sector - twice the national average.

Yuasa could soon be Ebbw Vale's biggest employer

The local council's economic development director Peter Slater admits they have to work at building up the services sector.

"There's the manufacturing issue generally with the economy, as well as the proportion employed here in manufacturing," he said.

"It's got harder in the last year or so to attract inward investment, firms are looking more to Eastern Europe and demand's not as buoyant."

Redundancy blow

But the expected redundancies will deal another blow.

The loss of well-paid steelmaking jobs - paying more than �20,000 a year - will mean local people will have less money to spend and this in turn deals a blow to hopes of developing alternatives in the service industry.

The town's problems already means it qualifies for the aid package offered by European Objective One money.

But the council are ready to push for far more aid from government to open up the labour market if Corus goes ahead with its plans.

Local people are desperate for jobs on their doorstep, with mobility both a real and cultural barrier.

The Corus plant is set to close

After the closure announcement, telecoms company EXI along with the AEEU union unveiled an offer to retrain up to 4,000 steelworkers, but that involves some work away from home.

This was met with scepticism in Ebbw Vale - with workers calling for new opportunities in their communities.

No transport links

That view is not discouraged by the fact that there are no trains from Ebbw Vale.

The idea of reopening the railway line between the town and the jobs magnets of Newport and Cardiff around an hour's commuting time away now has a greater urgency.

A feasibility study is near completion and the project, costing up to �30m, could be pushed forward as a priority in any regeneration plan.

Locally, the industrial landscape is changing slowly.

As the clouds gathered over job threats across town, hi-tech laser company Vector Technologies announced its expansion.

They produce laser security and safety devices for trains and lifts, but the number of jobs are comparatively small.

There are other big employers - 500 work for Continental Teaves brakes factory and another 900 work for the battery manufacturers Yuasa.

The Japanese-owned firm started small and could soon be the town's biggest employer.

Maybe Ebbw Vale is in danger of being better known for its car batteries.