§ Mr. JenkinTo ask the President of the Board of Trade if he will make a statement on the future of the iron and steel readaptation benefits scheme.
§ Mr. SainsburyThe scheme was set up in 1974 since when many improvements have been made to the arrangements for helping unemployed people. ISERBS is not very effective in assisting redundant steel workers to re-enter the labour market and has not proved good value for money. Further large-scale restructuring in the United Kingdom steel industry is no longer anticipated. Redundant steel workers should henceforth be treated in the same way as most other redundant workers. ISERBS will therefore be terminated.
The termination will apply in respect of closures, capacity cuts or changes in activities at steel companies which take place from today. However, it is important that appropriate transitional arrangements are put in place which are as fair as possible. Accordingly I am today also issuing a consulation paper and inviting comments by 10 December 1993 on those arrangements in respect of such events which I am satisfied are imminent.