FORMER employees at a Newport steel works which went into administration days before Christmas are being given Assembly cash to help them re-train.

Yesterday, Ieuan Wyn Jones, the Deputy First Minister and Minister for the Economy and Transport, announced that ReAct funding, coming in part from the European Social Fund, will be available for the former employees at Alphasteel to help them retrain and gain new skills to get back into work.

ReAct is a support package aimed a re-training workers made redundant and providing help to businesses with the costs of employing and training them.

Mr Wyn Jones also said although it was too early to speculate about potential buyers for the Alphasteel plant, he was "encouraged to hear" the administrators optimism about selling the site.

Workers at the Corporation Road plant were made redundant just days before Christmas after the company went into administration.

Following the announcement, workers can now receive a training payment to cover up to 70 percent training costs to the value of £1000.

Employment Recruitment Support will also provide a contribution of up to £2080 towards the costs of employing an individual.

Marilyn Jones, 63, of Lighthouse Park, Newport, a former nurse at Alphasteel, said: "I think it's great, they should be given every bit of encouragement and every bit of help they need."

Other support, including help and advice on preparing CVs and interview techniques will also be given to the workers.

Kieron Evans, 53, of Leach Road, Newport, said: "It's definitely good news. Now we've got to see what happens."

David Thomas, 50, of Lilian Grove, Ebbw Vale, welcomed the news, but added he believes the option of retraining might not be helpful to all of the workers made redundant.

"It's a good sort of gesture, I think it's come a bit too late at the age of 50. I don't think there's a lot of industries that would take you on regardless of the training you've done," he said.

Still hope for steel plant - politicians POLITICIANS said yesterday that there is still hope that the Alphasteel site can be sold.

William Graham, Conservative AM for South Wales East said business rescue specialists Begbies Traynor have already indicated interest in buying the company.

"Potential for this is good as the site benefits from its location on the M4 corridor, having its own berth on the River Usk and a private connection to the national rail network," he said.

Rosemary Butler, AM for Newport West said: "It's really very important that we keep steelmaking in Newport."

Trish Law, AM for Blaenau Gwent said: "I note that every effort is being made by the administrator to sell the company, and my understanding is that there is a fair amount of interest in acquiring the business.

"I would just add that, should the worst case scenario arise, I would very much hope that Alphasteel workers are afforded the same degree of help and assistance as Corus employees have received in the past - that's over and above what is prescribed in the React programme."