EMERGENCY measures to offset the disastrous economic impact of 700 job losses in a coastal town were drawn up last night.

Trade Secretary Stephen Byers pledged that the Government would work with local authorities to soften the blow of TransBus International's shock news at its plant in Scarborough, North Yorkshire.

The 94 year-old firm, one of the largest bus and coach manufacturers in Europe, will close with phased redundancies up to early August.

The impact of the foot-and-mouth crisis and the end of an eight-year boom in small midibuses - manufactured in Scarborough - were blamed for driving the final nail into the coffin of the town's largest employer.

Scarborough MP Lawrie Quinn called yesterday for a task force to be established in an effort to minimise the impact of the decision.

Mr Quinn said: "This is a devastating blow to the local economy, to the community in Scarborough and the thousands of families who have been associated with it over the years.

"It is also next door to the Eastfield area, one of the most deprived parts of my constituency and among the poorest ten per cent in the region."

TransBus confirmed that a jobs clinic, with one-to-one assistance for workers, would be set up immediately.

Scarborough Borough Council chief executive John Trebble said: "We will be seeking to set out an action plan on how we can help them.

"The Government development agency, Yorkshire Forward, has a rapid response fund and we shall be looking to see how that could be used by the workers to try to retrain or seek other employment opportunities."