MPs ask Greater Lincolnshire Mayor for "temporary loan" on oil refinery
The Lindsey Oil Refinery is set to shut after a buyer did not come forward
North East Lincolnshire’s two MPs have written to the Mayor of Greater Lincolnshire asking for devolution cash towards a “temporary loan” to help keep Lindsey Oil Refinery open for longer and allow more time for a potential buyer to come forward. It follows widespread criticism of the limited time allowed for a possible bid to buy the refinery as a going concern.
Lindsey Oil Refinery, near North Killingholme, is being wound down after the UK Official Receiver deemed no viable buyer had come forward this month. The Official Receiver has overseen its management, along with FTI Consulting, since June 30, when Prax Group companies in charge of it entered liquidation.
The letter, penned by Melanie Onn (Labour – Great Grimsby and Cleethorpes) and Martin Vickers (Conservative – Brigg and Immingham), sees the MPs call on the Mayor, Dame Andrea Jenkyns (Reform UK), to use some of the Greater Lincolnshire Combined County Authority’s (GLCCA) £24m a year devolution investment cash to buy crude oil for the refinery. In their correspondence to the Mayor, Ms Onn and Mr Vickers state: “Prax Lindsey Oil Refinery (LOR) is one of the most significant industrial employers in our region.
“It supports not only thousands of skilled, well-paid jobs directly on site, but also a wider ecosystem of contractors, logistics and supply chain workers across North and North East Lincolnshire.” Under the devolution deal for the county, the GLCCA is getting £24m a year for 30 years, £720m in total, to spend locally.
The letter by Ms Onn and Mr Vickers states: “As Mayor, you now hold important devolved powers that can and should be deployed in response.” It later asks Dame Andrea: “Would you consider using your devolved budget towards a temporary loan for crude purchase to enable more time for viable offers for the site to come forward?”
The two MPs commit to supporting the Mayor in asking Government for greater flexibility over devolution funding. Specifically, so that more of the £720m cash over 30 years can be drawn down this financial year for the refinery, if necessary.
Ms Onn and Mr Vickers say from conversations with day staff and trade union representatives that “securing a shipment of crude oil to the site remains the immediate priority”. The two MPs also ask for Mayoral funding help in case closure of the refinery does happen.
“Will you commit to using a portion of the devolved funding to deliver a proper reskilling and retraining programme for workers in our area and will you work with us to develop a clear, locally led plan for industrial transition?” Dame Andrea has previously promised to support refinery workers “with training and employment needs” should the site close.
She has been vocal in calls for a united response to the plight of Lindsey Oil Refinery in a letter to Ed Miliband. Dame Andrea has also sharply criticised the Government over the refinery situation.
At the Unite-organised rally outside Grimsby Town Hall last week, she told attendees she had pressured Government, adding: “Quite frankly, I don’t think they’re taking it seriously, I think they’re sacrificing Lindsey Oil on the zealotry of net zero.” Dame Andrea is a sceptic of the need to achieve net zero carbon emissions by 2050. The Mayor of Greater Lincolnshire has been contacted for comment.
The Government has committed to a fully-funded Training Guarantee for all directly employed refinery staff. This will see them offered a meeting with an adviser to work out possible courses to take to enable them to shift to careers in the clean energy sector. Workers would not have to pay anything at all for the courses.