Jobs fund will not make any more grants

Lord Mandelson, then Business Secretary, launched the £60m Tees Valley Industrial Programme (TVIP) in December 2009 to generate employment in the Tees Valley following the decision by Tata Steel, formerly Corus, to mothball Teesside Cast Products, near Redcar.

The programme, jointly funded by the Department for Business, Innovation and Skills (Bis) and regional development agency (RDA) One North East was originally earmarked to run for two years.

But with RDAs due to be scrapped in March next year, One North East announced that no further grants would be made.

In a statement yesterday, the development agency said: “Following the decision to abolish RDAs, One North East is no longer able to commit to funding projects that extend beyond the end of the current financial year.

“Consequently, TVIP will not be able to support or develop any further projects from today.”

It is understood that yesterday was the cut-off point, because it was unlikely any further projects could be turned around in the three months to April.

It is unclear what will happen to the remaining £18m and whether it will be earmarked for projects in the North-East.

Redcar MP Ian Swales said that while the TVIP had been a success, it had now been overtaken by events, with the abolishment of the RDAs and the introduction of the controversial £1.4bn regional growth fund.

He said: “It was a good programme and there has been some great progress made as a result of it, but now there is a new system in place.

“It would have been confusing for people to try to keep the industrial programme running alongside the regional growth fund.

“Some of the bids in the first round for the regional growth fund would have previously been part of the TVIP, so it is really a reflection of the fact we have a new system in place.”

Neil Kenley, director of business investment at Tees Valley Unlimited, which worked with One North East to distribute the TVIP funding, said: “Our job now is to look at alternative support which can be accessed by businesses.

“For example, we are working closely with businesses and our partners to make regional growth fund applications to ensure Tees Valley gains the maximum benefits from the Government funding available.”

The investments made by the TVIP are expected to create nearly 1,900 jobs, while safeguarding the employment of a further 1,400 workers.

It is also expected to support £232m-worth of private business investment and create nearly 700 businesses.

Major projects supported by the fund, with the potential to create hundreds of jobs, include TAG Energy Solutions’ factory to manufacture offshore wind turbine foundations on the banks of the River Tees, and chemical specialist Air Products’ plans to build a renewable electricity site near Billingham.

One North East deputy chief executive Ian Williams said: “TVIP funding has been used to catalyse and accelerate company investments, as part of a plan to help the Tees Valley seize the private sector opportunities in new low carbon technologies.”