TEESSIDE will get powers to clean-up its shattered steelworks and revitalise its community – but ministers have been warned not to treat the move as a pat on the back.

Lord Michael Heseltine yesterday (Friday, February 19) announced a new organisation will transform the rusting SSI UK works, in Redcar, and redevelop thousands of acres by the River Tees.

He said the Mayoral Development Corporation (MDC), described as the first of its kind outside London, will put local decision-makers in charge of creating thousands of jobs and luring greater investment.

However, Redcar MP Anna Turley last night said although a seemingly positive step, the MDC must not become a toothless venture, where local authorities are left to cover the enormous bill of renovating SSI’s derelict former base.

Lord Heseltine, who is leading regeneration efforts following SSI’s demise, said the MDC, led by an elected mayor, will add further weight to the Government’s devolution plans.

He also added it will be stronger and more robust than previous urban development bodies, as it will combine national Government with the knowledge of local power brokers across councils and the region’s Combined Authority.

However, he failed to divulge when work will start, how much it will cost to clean up the hundreds of acres covered by SSI’s various plants, or where the money will come from, confirming only that it will be underwritten by Chancellor George Osborne.

Speaking at Teesport, where he celebrated operator PD Ports’ £35m quay expansion, which will allow it to welcome larger vessels, he said: “I sympathise with those who lost their jobs in the sad demise of the steel industry.

“(However, the MDC) brings a coherent and long-term view, not just of the SSI site, but of the wider 5,000 acres of land bordering the Tees on the south bank.

“The MDC is a very different animal and completely in tune with the Government’s devolution agenda.

“Across the Tees Valley, there is a vibrancy and pursuit of excellence; this is a far better solution.

“I don’t know the cost, but it has to be done; money is available.

“Key to the economic future of the Tees Valley will be the regeneration of the sites and securing strong investment to create jobs for the skilled workforce affected by SSI’s closure.”

The former deputy Prime Minister also responded to criticism the MDC will be yet another layer of Government, which offers talk but provides little action.

He told The Northern Echo: “Look at what happened in Teesside with the development corporation.

“Look at the banks of the Tyne; they have been transformed.

“These are bodies for action; they have a track-record of success.

“They focus the attention on investing and new jobs.”

Redcar MP, Ms Turley, who has previously called for details to be made public on SSI’s clean-up costs, said it remains important the Government is transparent about how the bill will be paid, adding it must also ensure the MDC has real power.

She added: “I am pleased the Government are progressing on the future of the SSI site and welcome any measures that help our local economy recover.

“However, we have yet to see a clear plan for cleaning up and whether or not they will take responsibility for the vast cost.

“It simply cannot be borne by the local authorities.

“The MDC needs to be backed up with real, tangible powers and funding and not simply be a back-patting exercise by ministers.”

Councillor Sue Jeffrey, chairwoman of the Tees Valley Shadow Combined Authority and leader of Redcar and Cleveland Borough Council, also echoed the need for the MDC to provide definite command.

She added: “I welcome confirmation the Government is to take responsibility for the SSI site and establish a body to ensure safety and security in the short-term.

“However, it is the long-term regeneration of the area that’s my focus.

“This can’t just be about new structures and boards – we will work with the Government to secure the necessary powers and funding to create a viable future.”

Lord Heseltine was at Teesport with Stockton South MP, James Wharton, where he added concrete to a quay, which bosses say will provide space for larger ships to dock.

  • See Wednesday’s Jobs & Business supplement for an in-depth look at PD Ports’ Teesport expansion