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Thursday, 31 January, 2002, 17:52 GMT
Minister announces �1m aid package
corus plant, shotton
Shotton was hit hard by the job losses
The Welsh Assembly First Minister Rhodri Morgan has announced further plans to regenerate communities hit by massive cut backs in Wales's steel industry.

In a statement to the assembly, to mark the first anniversary of the 3,000 Corus job losses in Wales, Mr Morgan outlined a �1m aid package for Flintshire.


Flintshire deserves its fair share of the money and attention

Alyn and Deeside MP Mark Tami

The money will be used to give support and advice to those affected by the 400 redundancies announced at Corus's Shotton plant last year.

The minister also unveiled plans for �7m towards a passenger rail link between Ebbw Vale and Cardiff and a �10m urban regeneration project for Newport, south Wales.

The closure of the Llanwern plant near Newport, was the biggest blow with 1,300 redundancies.

Further cuts were made in south Wales at Ebbw Vale and Bryngwyn near Swansea.

However, in reaction to the Flintshire aid package, Alyn and Deeside MP Mark Tami warned against complacency in north east Wales.

Rhodri Morgan
Mr Morgan defended the aid package

He said: "While we welcome the �1m it is vitally important that Rhodri Morgan and the assembly recognises the proud history of steel in this area (north east wales).

"Flintshire deserves its fair share of the money and attention."

Mr Tami said that there was some cause for concern in north east Wales, regarding job losses.

He added that it should not be assumed that those made redundant in Shotton will automatically find alternative employment.

He said: "As well as the redundancies at Corus, the recent job losses at Corning and Burlington Toiletries - two other Deeside firms - have shown that nothing can be taken for granted."

Economic powerhouse

However responding to fears Flintshire was not getting a fair amount of assistance, Mr Morgan described the Deeside Industrial Park as "probably the most successful industrial park in Britain".

He said it was wrong to say all prospects of growth in Flintshire ended on 11 September which he said was "undoubtedly a hiccup" with aerospace which might last two years.

He said "I think you have to regard eastern Flintshire as one of the, if not the, biggest economic powerhouse in the Welsh economy".

Mr Morgan stated that the area had a greater ability to absorb shocks than anywhere else in Wales and therefore it wasn't an assisted area.

But the minister added that "we have to keep an eye on the situation to see if underlying weaknesses are starting to come through.

Task Force

The announcement is part of a multimillion aid package unveiled in May last year, by Mr Morgan, to help rebuild the steel communities affected by the Corus closures.

In September a research team at Cardiff University recommended that task forces set up to regenerate the affected areas be in place for at least five years.

The report, commissioned by the assembly and the WDA, said the UK Government should extend European rules requiring companies to develop social plans for communities affected by mass redundancies, as is the case in France and Germany.

The team led by Professors Peter Fairbrother and Kevin Morgan also called for a more comprehensive and co-ordinated approach by agencies involved in regeneration.

See also:

10 Sep 01 | Business
Corus losses hit �230m
02 Aug 01 | Business
'Dr Death' takes charge at Corus
19 Apr 01 | Wales
Steel giant rescue bid fails
29 Mar 01 | Wales
Corus talks move to Europe
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