GLAXOSMITHKLINE has added its financial weight to an initiative aimed at creating jobs in Teesdale.

GSK made a £750,000 donation yesterday to the Teesdale Enterprise Fund to create 150 sustainable jobs over the next five years.

The fund is part of GSK's £1.2m commitment to the community, promised when it announced plans to downsize the plant in June last year as part of a global rationalisation.

The fund is a joint initiative between GSK, County Durham Development Company (CDDC) and the Teesdale Enterprise Agency.

It is supported by Durham County Council, Teesdale District Council and regional development agency One NorthEast.

CDDC will administer the fund, with a management panel selecting projects.

Applicants for funding will have to demonstrate that they will create sustainable jobs in the Teesdale area, with the maximum support made available being 50 per cent of the cost of the total project.

It is particularly interested in people wanting to start their own business, and existing businesses looking to expand.

The main aim of the fund is to create at least one new job for every £5,000 invested by the fund.

As well as the £750,000 investment in the Enterprise Fund, GSK is investing a further £450,000 in internal projects to support staff affected by the job cuts.

Launching the fund, Jonathan Box, GSK Barnard Castle site director, said: "When we announced our plans to downsize this site and cut 400 jobs we recognised that there would be a significant impact on the local community and economy and we wanted to do whatever we could to lessen this.

"We believe that the £1.2m we have committed will help and we see the Enterprise Fund as an effective way to stimulate new long-term jobs in Barnard Castle and the Teesdale area."

Mark Lloyd, managing director of CDDC and director of economic development and planning at Durham County Council, said: "The economy in the more rural areas of County Durham can be fragile. As many of the employees travel in to GSK from the surrounding small towns and villages, any job losses at the plant can affect the whole of Teesdale.

"This new fund offers a vital economic lifeline to the area and we applaud GlaxoSmithKline's commitment to provide the resources to bring real employment and regeneration prospects to this part of County Durham."

The launch was attended by dignitaries from across the North-East, including Derek Foster, MP for Bishop Auckland, whose constituency includes the plant.

Mr Foster said that while it was regrettable that GSK had to shed jobs to remain competitive at Barnard Castle, the region appreciated the company's efforts to mitigate the effect that would have on the local economy.

He said: "I hope that the money which the fund will make available will be put to good use to boost the number of new jobs in Teesdale.