ED Miliband is currently exploring ways to rescue an English oil refinery with hundreds of jobs at risk, according to reports.
Sky News has reported that Miliband, the UK's Energy Security Secretary, wants to create a mechanism for refineries to become eligible for the Energy-Intensive Industries Compensation Scheme after State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – appointed administrators on Monday.
Refineries are are currently excluded from the scheme.
More than 180 staff are employed by State Oil, while it is thought that around another 440 work at the Lindsey refinery.
Trade union Unite called on the Government for urgent intervention as it raised concerns that the failure of the firm could impact UK oil supplies, leaving the UK on a “cliff edge”.
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.
Just over 400 jobs were lost earlier this year when the oil refinery closed and transitioned into being an import terminal.
A separate winding-up order has also been made against the Lindsey oil refinery and related businesses and a liquidator has been appointed.
Energy minister Michael Shanks and Scottish Labour MP said the firm’s collapse was “deeply concerning” and said the company had left the Government with “little time to act”.
He said: “There have been longstanding issues with this company and workers have been badly let down.
“The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency.
“The Government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies.”
He added: “The Government believes that the business’s leadership have a responsibility to the workers and the local community.
“We call on them to do the right thing and support the workers through this difficult period.”
