Calls for government to save refinery from closure

Lindsey Oil Refinery in Immingham is to close after the government was unable to find a buyer for it

Unions and political parties have called on the government to intervene and keep the Lindsey Oil Refinery open.

Energy Minister Michael Shanks announced the plant in North East Lincolnshire was to shut after the government said it was unable to find a buyer for it.

The Official Receiver took over the site in Immingham last month after its owner, Prax, went into administration, putting 420 jobs at risk.

Unite the Union general secretary Sharon Graham said: "The government can't sit on the sidelines any longer."

She added: "The Lindsey refinery is critical national infrastructure and is essential for the UK's fuel supply and the health of the regional economy.

"The government needs to reverse the premature decision to stop buying crude oil and to extend the time to find a viable long-term solution for the site."

Ms Graham's views were echoed by Reform UK, which said it was "shocked that after just three weeks, the Government has given up on the Lindsey Oil Refinery".

A statement, co-signed by Greater Lincolnshire mayor Dame Andrea Jenkyns and the leader of Lincolnshire County Council Sean Matthews, said the party believed "a different course of action is essential".

"We understand from our sources that the refinery can be profitable with the right management and ownership structure," the statement said.

"The Government should be looking at joint venture structures, such as the site being publicly owned and bringing in top operating expertise in a public private profit share arrangement."

Owners Prax went into administration last month

Unite previously said the closure of the Immingham refinery could affect up to 1,000 jobs when taking into account contractors and the supply chain.

In a written statement in the House of Commons earlier, Shanks said: "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.

"Having visited some of the workers on site on 17 July, I know this will be hugely disappointing news for them, their families and the local community.

"A package has been offered to all those directly employed at the refinery, which guarantees jobs and pay over the coming months."

He added that the Official Receiver was exploring various proposals for assets.

"I therefore remain hopeful that a solution will be found that creates future employment opportunities at the Immingham site," he said.

Analysis

Prax is living on borrowed time.

The government is talking about timetables for closing its various functions.

Crude oil processing will stop at the end of this month with fuels and oils being sold in the weeks that follow - until they run out.

Ministers are calling on the owners of the site to, in their words, "do the right thing" and offer financial support to the hundreds who are losing their jobs.

The Government is asking the insolvency service to investigate how the financial health of Prax was allowed to decline so sharply.

The trade unions are continuing to call for government intervention to keep the plant operational in the long term.

But that level of support is looking unlikely.

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