THE chairman of the steel task force has issued an upbeat message, despite the threat of further mass redundancies in the New Year.

Alistair Arkley said he expected "significant developments" on further measures to help both redundant workers and create new job opportunities around the former British Steel works on Teesside.

But with further announcements on "restructuring" expected from steel giant Corus in January, with more job cuts on Teesside anticipated, the task force appreciates that concerns may be greater in a months time.

Mr Arkley, who also chairs the Tees Valley Partnership, said: "I can understand that, with the continuing concerns over both the job cuts already announced, and the longer term prospects for the industry, people are anxious to see results.

"I believe that the task force and its members have been doing a great deal of useful work which will see real and practical benefits in the new year."

The task force was set up with backing from Trade and Industry Secretary Stephen Byers, and includes Government agencies, regional and local bodies, MP Ashok Kumar, Redcar and Cleveland Borough Council, Corus and UK Steel Enterprise.

Mr Arkley added: "We have successfully bid for £341,000 from the Government's Rapid Response Fund for dealing with major job cuts, and we hope to select the organisation who will deliver training and other services to help workers directly affected, within the next few days."

The news was welcomed by steel union, the ISTC. Spokesman Ken Stevens said: "Any measures put in place to help steel workers affected by these cuts is good news."

lAn announcement from the ISTC is expected today regarding its consultation exercise with members at Corus plants across the country. Industrial action in the new year remains a strong possibility, with Corus having already cut 4,000 jobs since June, including 800 at its operations at Lackenby, Redcar and Grangetown