§ Mr. Spenceasked the Secretary of State for Industry what proportion, excluding statutory redundancy payments, of the compensation terms recently announced for redundant steel workers is contributed by the Government; what contributions are made from other sources; what are those other sources; and if he will make a statement.
§ Mr. Michael MarshallSteel workers made redundant when a works is closed may be entitled to payments under the iron and steel employees readaptation benefits scheme which provides income support benefits for 78 or 130 weeks following redundancy depending on age. This scheme is funded jointly by the Government and the European Coal and Steel Community.
In addition, the British Steel Corporation often makes severance payments, negotiated at local level, to secure early closure of a works or part of a works. These payments are a matter for the BSC, but are currently being financed by the Government as part of the support for the corporation announced by the Secretary of State for Industry on 24 February.