Minister insists fuel supplies not under threat despite oil refinery closure
Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer.
Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers.
'This has also allowed time for bidders to express an interest in the site.
'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.'
He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months.
'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.'
The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland.
Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021.
Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company.
He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months?
'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?'
Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.'
On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.'
Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'.
Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments.
'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency.
'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
38 minutes ago
- Daily Mail
Class warfare is back under this spiteful government – and we will ALL end up paying a ruinous price: LEO MCKINSTRY
The current government is increasingly running not on a desire to improve the country, or out of any kind of political mission - but on sheer spite. Having failed to achieve the elusive economic 'growth' he and his inept Chancellor Rachel Reeves promised before the election, Sir Keir Starmer is now trying to revive his fortunes by stoking class envy.
South Wales Guardian
an hour ago
- South Wales Guardian
First electric cars eligible for new grants announced
Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars, the Department for Transport (DfT) said. The discount will be automatically applied at the point of sale. These are the first models approved under the new £650 million electric car grant. This will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on sustainability criteria. It is hoped the measure will encourage more drivers to switch to electric motoring. The DfT said many drivers cite upfront costs as a 'key barrier' to buying an EV, and the grant will bring down prices so they 'more closely match their petrol and diesel counterparts'. Transport Secretary Heidi Alexander said: 'With the first four models approved today, and more to come over the next few weeks, this summer we're making owning an electric car cheaper, easier and a reality for thousands more people across the UK. 'Once again we're delivering our plan for change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people's pockets.' Greg Taylor, managing director of Citroen UK, said: 'We want everyone to have the opportunity to make the switch to an electric car, and this support will help make our cars more accessible for our customers.' Edmund King, AA president, said 'any Government support to boost the demand for EVs is welcome', adding: 'This discount of £1,500 for some more affordable EVs will help a number of those with tighter budgets. 'We look forward to seeing the full list of discounts up to £3,750 on more models to really push the market forward.' Dan Caesar, chief executive of lobby group Electric Vehicles UK, welcomed the announcement and called for manufacturers to 'support a scheme which the EV industry needs to be conspicuously successful'. Under the Government's zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric. Across all manufacturers, the figure during the first half of the year was 21.6%. Prime Minister Sir Keir Starmer announced in April that sales of new hybrids that cannot be plugged in will be permitted to continue until 2035. Changes to the Zev mandate also mean it will be easier for manufacturers who do not meet the targets to avoid fines.
Powys County Times
an hour ago
- Powys County Times
Tories demand Reeves ‘urgently rule out' investment tax hikes
The Conservatives are demanding Chancellor Rachel Reeves 'urgently rule out' raising shares taxes in the autumn budget, claiming that leaving investors 'in limbo' will damage the economy. The Tories claim scrapping the £500 dividend allowance will drag an estimated 5.22 million more people into paying investment levies. The party is seeking to pile pressure on ministers after a memo sent by Angela Rayner to Ms Reeves, in which the Deputy Prime Minister suggested a series of tax hikes, was leaked to the press. In the document, Ms Rayner proposed removing the dividend allowance to raise around £325 million a year in revenue, as well as axing inheritance tax relief for AIM shares and increasing dividend tax rates, the Telegraph reported. Shadow chancellor Mel Stride said: 'The Government need to urgently rule out these tax hikes on savers and investors before speculation causes further economic harm. 'Labour don't understand how business works and how to create growth. More taxes on investment, entrepreneurship and saving are the last thing our economy needs right now.' The Government's U-turns over welfare reform and winter fuel payments have left the Chancellor with a multibillion-pound black hole to fill, fuelling speculation that she will seek to raise revenue through tax hikes. The Tories claimed axing the dividend allowance would drag 'an estimated 5.22 million more people into paying dividend tax'. This figure appears to be based on an assumption that at least 8.82 million people in the UK hold shares that pay dividends. Some 3.6 million are already subject to dividend tax, according to data obtained by investment platform AJ Bell through a Freedom of Information request. The Chancellor last year said she would not be 'coming back with more borrowing or more taxes' after her first budget but has since refused to rule out raising specific levies, saying it would be 'irresponsible' to do so. A Labour Party spokesperson said: 'The Conservatives have some brass neck. They've still not apologised for the damage caused by the Liz Truss mini-Budget, nor the £22 billion black hole they left – which hammered firms and families across the country. 'Labour is doing more to support business than the Tories ever could. 'We've already delivered three historic trade deals and four interest rate cuts – to reduce costs and put money back in people's pockets.'
