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Work to start on helping Murco workers after deal collapse | Work to start on helping Murco workers after deal collapse |
(about 5 hours later) | |
Work is under way to help hundreds of staff affected by the "devastating" collapse of a deal to sell Pembrokeshire's Murco oil refinery. | |
A task force of politicians will meet next week to discuss a way forward, while Pembrokeshire council has vowed to help workers find new jobs. | A task force of politicians will meet next week to discuss a way forward, while Pembrokeshire council has vowed to help workers find new jobs. |
The sale of the firm to the Swiss-based Klesch Group was called off on Tuesday night. | The sale of the firm to the Swiss-based Klesch Group was called off on Tuesday night. |
Abound 60 of 400 jobs will remain at the Milford Haven site. | Abound 60 of 400 jobs will remain at the Milford Haven site. |
The collapse comes after months of work behind the scenes which saw close co-operation between the Welsh and UK governments. | The collapse comes after months of work behind the scenes which saw close co-operation between the Welsh and UK governments. |
The refinery will now enter a shut-down period and will be decommissioned while the company looks for a new buyer. | The refinery will now enter a shut-down period and will be decommissioned while the company looks for a new buyer. |
In addition to its own workforce, the refinery employs a further 200 contractors and is understood to support a further 4,200 jobs in the area. | In addition to its own workforce, the refinery employs a further 200 contractors and is understood to support a further 4,200 jobs in the area. |
Economy Minister Edwina Hart warned the deal collapse would have implications for the wider economy. | Economy Minister Edwina Hart warned the deal collapse would have implications for the wider economy. |
She told BBC Radio Wales her priority was to help the Murco workforce and their communities in Pembrokeshire. | She told BBC Radio Wales her priority was to help the Murco workforce and their communities in Pembrokeshire. |
She said she was setting up a task force to look at how new jobs could be attracted to the area and how the Welsh government could help people into new employment. | She said she was setting up a task force to look at how new jobs could be attracted to the area and how the Welsh government could help people into new employment. |
"Pembrokeshire and those individuals require help and assistance now," she said. | "Pembrokeshire and those individuals require help and assistance now," she said. |
Some say the ripple effect on the economy is already being felt. | Some say the ripple effect on the economy is already being felt. |
Janice Morgan of West Wales Properties in Milford Haven said: "We have had one vendor look to withdraw his house - he works at Murco. | Janice Morgan of West Wales Properties in Milford Haven said: "We have had one vendor look to withdraw his house - he works at Murco. |
"Some people will have to sell because they're not working and cannot afford the mortgage." | "Some people will have to sell because they're not working and cannot afford the mortgage." |
'Dire situation' | 'Dire situation' |
Pembrokeshire council leader Jamie Adams said work would now start to find a way to help those who have lost their jobs, adding: "We will try and find some opportunities out of this dire situation." | Pembrokeshire council leader Jamie Adams said work would now start to find a way to help those who have lost their jobs, adding: "We will try and find some opportunities out of this dire situation." |
Local councillor Huw George said the task force would be up and running next week and Jobcentre Plus would hold a jobs fair. | Local councillor Huw George said the task force would be up and running next week and Jobcentre Plus would hold a jobs fair. |
"There may be opportunities on the near horizon which may not replace the quality or number of jobs," he said. | "There may be opportunities on the near horizon which may not replace the quality or number of jobs," he said. |
"But we are as a council and as south west Wales region are always looking to entice businesses to the area. | "But we are as a council and as south west Wales region are always looking to entice businesses to the area. |
"We're just going to work harder to ensure they come sooner rather than later." | "We're just going to work harder to ensure they come sooner rather than later." |
Among those to lend his support to the community is Welsh Secretary and local MP Stephen Crabb, due to hold a surgery for workers on Friday. | Among those to lend his support to the community is Welsh Secretary and local MP Stephen Crabb, due to hold a surgery for workers on Friday. |
Professor Max Munday: "Major impact" | Professor Max Munday: "Major impact" |
Professor Max Munday, from the Welsh Economy Research Unit, who produced a report on the economic activity in the Milford Haven area in 2012, said the refinery's closure would have a big impact locally. | Professor Max Munday, from the Welsh Economy Research Unit, who produced a report on the economic activity in the Milford Haven area in 2012, said the refinery's closure would have a big impact locally. |
"It's one of Wales' biggest exporters. It exports close to £2.5bn of output from Wales a year," he said. | "It's one of Wales' biggest exporters. It exports close to £2.5bn of output from Wales a year," he said. |
"It will have quite a big impact on household incomes in the area, that will be felt by local shops and businesses. | "It will have quite a big impact on household incomes in the area, that will be felt by local shops and businesses. |
"For some of the workers, the most highly skilled occupations, I don't doubt there will be opportunities in other parts of the UK and overseas, in the Middle East and India. | "For some of the workers, the most highly skilled occupations, I don't doubt there will be opportunities in other parts of the UK and overseas, in the Middle East and India. |
"The plant provides something very needful for the Welsh economy - it provides full time, highly skilled, quite highly paid employment. | "The plant provides something very needful for the Welsh economy - it provides full time, highly skilled, quite highly paid employment. |
"It's hard to see where that gap is going to be bridged into the future." | "It's hard to see where that gap is going to be bridged into the future." |
Eric Ronald Harries, the mayor of Milford Haven, said a large cloud had hung over the plant for the past six months, but everyone had been hopeful of a good outcome. | Eric Ronald Harries, the mayor of Milford Haven, said a large cloud had hung over the plant for the past six months, but everyone had been hopeful of a good outcome. |
"Sadly, we've had shocking news," he said. | "Sadly, we've had shocking news," he said. |
"Still we cling to a desperate hope something can be done at this late hour. While we quote numbers, we are really dealing with people and families." | "Still we cling to a desperate hope something can be done at this late hour. While we quote numbers, we are really dealing with people and families." |
But Bryan Kelly, vice-president of UK operations for Murco, said he did not hold out any hope of a fresh deal with Klesch and said it was the end of the road for the plant after four years of trying to secure a deal. | But Bryan Kelly, vice-president of UK operations for Murco, said he did not hold out any hope of a fresh deal with Klesch and said it was the end of the road for the plant after four years of trying to secure a deal. |
He told BBC Radio Wales: "We've visited with literally dozens of buyers, we've given many management presentations, we've engaged seriously with more than one buyer and feel we've done all we possibly can to find a new owner." | He told BBC Radio Wales: "We've visited with literally dozens of buyers, we've given many management presentations, we've engaged seriously with more than one buyer and feel we've done all we possibly can to find a new owner." |
He said the situation had been very difficult for staff but they were being offered support and a minimum of 30 weeks pay in a redundancy package. | He said the situation had been very difficult for staff but they were being offered support and a minimum of 30 weeks pay in a redundancy package. |