AN urgent bid for Government cash is to be launched following the shock announcement that 700 jobs would be lost at the country's leading bus and coach manufacturer.

Business chiefs confirmed yesterday that they would be applying for Rapid Response Fund money to offset the economic damage caused by TransBus International's decision to end manufacturing at the Plaxtons plant in Scarborough.

They are also applying for Assisted Area status for the borough in an effort to bring in more long-term industrial investment.

Representatives of Scarborough Borough Council, the regional development agency Yorkshire Forward, North Yorkshire County Council and the Transport and General Workers' Union (TGWU) met yesterday to discuss the way ahead for the town.

The multi-agency task force will make an application for funding to help employees find work or training opportunities.

It is also hoping to set up a job and counselling advice centre within the factory, allowing workers to get on-site advice from the Employment Service.

Scarborough council's economic development officer, Ray Williamson, said: "The meeting discussed the way all agencies must work together to develop a coordinated response to the situation.

Meanwhile, TGWU bosses stepped up their campaign to save the Scarborough jobs at a meeting with Department of Trade and Industry Minister Alan Johnson yesterday.

TransBus announced the job losses last Thursday, as part of a review of all seven of the company's manufacturing facilities in the UK.

The Scarborough operation will close by early August, with production of midi buses transferred to Falkirk, in Scotland.