BLACK & Decker has still not taken advantage of hundreds of thousands of pounds of Government aid intended to secure its North-East workforce, it emerged last night.

When the US-owned company announced nearly 1,000 job losses in Spennymoor, County Durham, two years ago, a workforce of about 500 was kept on the site - in part due to a six-figure Government "sweetener" offered after regional development agency One NorthEast engaged in frantic talks with the power tool manufacturer.

At the time, it was believed the factory was saved by the Government deal just 24 hours before Black & Decker bosses planned to pull the plug on Spennymoor altogether.

Now, The Northern Echo has discovered that the grant, which will only be paid if Black & Decker meets certain conditions, has not been paid to the company.

One NorthEast is due to meet for talks with the company next month to check if it has met conditions the grant was based on.

One NorthEast offered the grant on condition that the company made investment to secure the future of jobs at the site.

Ian Williams, head of business investment and finance at One NorthEast, said: "When the offer of financial assistance was made to Black & Decker, conditions were attached. However, to date, no payments have yet been made.

"One NorthEast has a planned meeting with the company in February and we will take this opportunity to address these issues with the management team."

Seven months ago, when One NorthEast last visited the site, it was believed the investment had not been carried out.

The discovery comes days after Black & Decker confirmed it was making "a small amount" of redundancies at Spennymoor.

Last night, One NorthEast declined to say how much the grant was worth, or the specific conditions attached, because it said the information was confidential until the grant was paid.

But Mr Williams said that he had no evidence that Black & Decker was planning to pull out of Spennymoor altogether.

Last night, no one at Black & Decker could be contacted for a comment.