Coryton oil refinery not to receive government funding

Written on:June 15, 2012
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Coryton oil refinery

Coryton oil refinery in Essex jeopardises 850 jobs at Britain's largest independent refining site

The government has decided not to approach the European Commission for permission to use state funds to rescue the Coryton oil refinery in Essex, which jeopardises 850 jobs at Britain”s largest independent refining site.

The Department for Energy and Climate Change made the decision regarding the refinery after Coryton”s parent company went into liquidation. Unions and refinery supporters had pushed ministers to consider funding the refinery to keep it afloat until administrators can find a buyer as its closure would drain £100 million from the economy.

But ministers said overcapacity in the refining industry meant it would not be sustainable to provide government help. Unite previously called on ministers to follow the example of the French government and give state aid to keep Coryton running until a buyer could be found.

“Departments across government have looked very carefully at whether or not state aid should be provided for Coryton. But we have come to the conclusion that the existing overcapacity in the refining industry and declining demand for petrol mean casino gaming that it would not be sustainable. This would not be a long-term solution either for the taxpayer or for the industry, which will thrive best with open and fair competition”, a government spokesperson elaborated.

He further explained the government”s decision by saying that if government did step in to help Coryton, this would be a short-term fix, and it could potentially lead to job losses at other refineries who would be at an unfair disadvantage to Coryton.

“The closure of Coryton as a refinery should not have any impact on supply of fuel to London and the South East. There are many other supply points and operational refineries which can be used”, he assured.

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