THE Government has never flinched in helping the North-East start recovering from the devastating collapse of steelmaking, it was claimed today.

Business Minister Anna Soubry told The Northern Echo the Conservatives will not let the region and its workers fall on the scrapheap following the demise of SSI UK’s Redcar works.

Ms Soubry was talking after the SSI Task Force, which is helping divide an £80m Whitehall support pot, announced £35m will be spent to help companies take on staff, allow firms to expand, and provide emergency funding for those facing extreme hardship.

The Government has received criticism for not stepping in to alleviate the steel company’s woes, with Redcar’s Labour MP Anna Turley previously voicing frustrations financial aid has been both too slow in coming and diluted by monies going to pay for redundancies.

However, Ms Soubry said the Government is doing what it can to help workers, as well as the steel industry, adding its hands have been tied by the price of steel.

She said: “We don’t want people in Teesside and its surrounding areas to end up on the scrapheap.

“The area has a fantastic workforce of highly-skilled people, they are very adaptable, and we have to make sure they get quality jobs.

“We need to be positive; this is a great part of the world and we are focused on doing the right thing for affected people and their families.

“That’s why I wish people would stop playing party politics.

“People forget the Government cannot set the price of steel.”

The Task Force says £16.5m has been put aside for a jobs and skills fund to help firms take on ex-SSI workers or their partners for at least three years.

A further £16m will help supply chain companies in the area secure existing jobs and create new posts, while a £2.4m emergency reserve is available to help ex-steelworkers in crisis and £750,000 on offer to help people start businesses.

The latest tranche of cash follows on from £7.3m Government monies the task force secured, which included £1.7m to enable 50 former SSI apprentices to complete their training with companies.

Ms Turley, who previously accused Government “mandarins” of holding up the funding, said she was relieved it had come through.

She said: “Since the promise of £80m was made several weeks ago, it has shrunk to £50m and numerous obstacles to accessing it have been put in our way by Whitehall.

“I know the local taskforce have put in a lot of work preparing these support schemes and my focus now will be ensuring it is delivered.

“With Christmas fast approaching, it is vital steelworkers and their families are not left struggling.”

Amanda Skelton, chairwoman of the SSI Task Force and chief executive of Redcar and Cleveland Borough Council, added: “It is important recovery work with our local employers and businesses starts as soon as possible, and these funds will help to kick start that process.”

SSI’s collapse has sent reverberations around the regional supply chain.

Teesport operator PD Ports, which oversaw delivery of SSI-made steel slab to foreign customers has warned posts are at risk, and County Durham coal and transport firm Hargreaves Services and Redcar’s Peterson Engineering have announced job cuts.

The steel industry’s woes have also snared Caparo Industries, which last week revealed the closure of its Hartlepool foundry, with the loss of nearly 100 jobs.