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| Ministers rule out state aid for Coryton oil refinery | Ministers rule out state aid for Coryton oil refinery |
| (about 7 hours later) | |
| The government has ruled out applying to the European Commission for permission to use state aid to keep open the Coryton oil refinery in Essex. | The government has ruled out applying to the European Commission for permission to use state aid to keep open the Coryton oil refinery in Essex. |
| Coryton's parent company has gone into liquidation, putting 850 jobs at risk. | Coryton's parent company has gone into liquidation, putting 850 jobs at risk. |
| The Labour Party and unions have pressed ministers to consider putting up cash to keep the refinery going until administrators can find a buyer. | The Labour Party and unions have pressed ministers to consider putting up cash to keep the refinery going until administrators can find a buyer. |
| But ministers said overcapacity in the refining industry meant it would not be sustainable to provide government help. | But ministers said overcapacity in the refining industry meant it would not be sustainable to provide government help. |
| The future of the Thames Estuary refinery has been in doubt since January, when its Swiss-based parent company, Petroplus, became insolvent. | The future of the Thames Estuary refinery has been in doubt since January, when its Swiss-based parent company, Petroplus, became insolvent. |
| The plant supplies about 20% of London and south-east England's fuel. | The plant supplies about 20% of London and south-east England's fuel. |
| Overcapacity 'nonsense' | |
| Two weeks ago administrators PricewaterhouseCoopers said they had failed to find a buyer and operations would be run down. | Two weeks ago administrators PricewaterhouseCoopers said they had failed to find a buyer and operations would be run down. |
| Labour MPs, and local Lib Dem MP Bob Russell tabled a Commons motion on Monday calling on the government to step in to allow the refinery to remain open until a buyer is found. | |
| They said the refinery was an important national infrastructure asset and that its closure would have "a devastating impact on the people of Essex" and risk making the UK more dependent on foreign fuel imports. | They said the refinery was an important national infrastructure asset and that its closure would have "a devastating impact on the people of Essex" and risk making the UK more dependent on foreign fuel imports. |
| They have been calling on ministers to approach the European Commission to find out if short term state aid could be offered to the refinery. | They have been calling on ministers to approach the European Commission to find out if short term state aid could be offered to the refinery. |
| Unite and the GMB unions have both condemned the government's decision. | |
| GMB union official Phil Whitehurst said: "The news that ministers are citing overcapacity in the industry is nonsense. | |
| "How can the Government just sit back and let 850 refinery workers lose their jobs? | |
| "Most will not be able to get work in the immediate area in their specialised professions." | |
| Unite Assistant General Secretary Tony Burke said the workforce felt "let down and betrayed" by the Government's refusal to step in. | |
| He added: "This is a Government which talks about supporting manufacturing yet sits on its hands and does little to support manufacturing growth. | |
| "The closure of Coryton will have a devastating impact on the local community and the wider economy, sucking out over £100m, and leading to the loss of hundreds of skilled jobs." | |
| 'Short term fix' | |
| But the Department for Energy and Climate Change (DECC) said that overcapacity in the refining industry and declining demand for petrol meant it would not be sustainable for the government to provide assistance even if the EU allowed it to do so. | |
| A spokesman added: "If Government did step in to help Coryton, this would be a short term fix, and it could potentially lead to job losses at other refineries who would be at an unfair disadvantage to Coryton. | |
| "This was a very difficult decision and it is particularly regrettable that people may lose their jobs. | |
| "The closure of Coryton as a refinery should not have any impact on supply of fuel to London and the south east. There are many other supply points and operational refineries which can be used." | |
| Some redundancies are expected next week. The government says this is regrettable, but it was working with local agencies and Jobcentres to help the refinery's skilled workforce find new positions. | |
| About 100 workers protested at the site and in Corringham town centre on Monday. | About 100 workers protested at the site and in Corringham town centre on Monday. |
| A demonstration was also held on Thursday outside London's Royal Courts of Justice where Prime Minister David Cameron was giving evidence to the Leveson Inquiry. | A demonstration was also held on Thursday outside London's Royal Courts of Justice where Prime Minister David Cameron was giving evidence to the Leveson Inquiry. |
| In February, a group of financiers agreed to pay to refine their own oil at the plant for three months, giving administrators more time to find a new buyer. | In February, a group of financiers agreed to pay to refine their own oil at the plant for three months, giving administrators more time to find a new buyer. |