PROPOSALS are to be put together on how millions of pounds of forgotten cash for steel areas could be spent.

Last week, The Northern Echo revealed how Steel Action, a coalition of local authorities in steel-making areas, claimed £50m of vital Government aid had disappeared, although the claim was refuted by the Department for Trade and Industry.

The cash was promised in the wake of Corus's devastating job losses across the country, which included 1,100 on Teesside.

Now the group said it has been asked to put forward proposals for projects in steel areas across the country including Teesside, following a meeting with Industry Minister Brian Wilson.

Mr Wilson also indicated he was keen to travel to steel areas to see for himself some of the proposals being put forward by the group.

Councillor David Walsh, leader of Redcar and Cleveland Borough Council, welcomed the news.

"There is a meeting of the Corus Task Force next week and I will certainly pass this on. I am sure that everyone involved will be delighted to invite Brian Wilson to Teesside as there is a lot to show him, both what we are doing now and what we want to do."

Steel Action will put together the first draft of ideas to Mr Wilson at its next meeting in Scotland on January 25.

The proposals will then be discussed at a meeting of the All Party Group of Steel MPs in Parliament on February 4.