ENERGY Minister Brian Wilson today unveiled a "powerful" £40 million rescue package for the shattered mining community in Selby.

He said local people were now faced with "a set of circumstances no one would wish to confront".

But he said a £30m task force, coupled with £10m to guarantee pitmen redundancy packages worth up to £27,000, offered hope for a brighter future.

He said the money was best spent in this way - rather than attempting to keep the complex open for a few extra years beyond 2004.

"I do not think anyone can say there is a perfect solution, but we can make an enormous difference by putting together this rescue package," he said.

Mr Wilson has asked Lord Haskins, the man who was charged with resurrecting the rural economy after the foot and mouth crisis, to head a new Selby Task Force.

He will be given £1.5m to produce an action plan by October to regenerate the town in the wake of today's announcement.

Lord Haskins, the former boss of Northern Foods, will then be handed a further £25m to £30m to implement the package.

But, in a boost to miners and their families, he has been told even more cash could be available if he can prove a strong enough case.

The first meeting of the task force will take place in Selby on July 25.

Mr Wilson continued: "The establishment of a task force is a tried and tested way of focusing resources on Selby and the areas of the economy which have potential for growth. It is a very challenging role, but if you get the proper focus and commitment then progress can be made."

Mr Wilson said: "I regret to see people losing their jobs in any industry, and the traditions of the coal industry make it particularly poignant. There is no pleasure in this for anyone."

Selby MP John Grogan said he would give the package "seven out of ten".

He said: "It is a reasonably good deal. I would've liked it to stay open until 2005, and for there to be a bit more money.

"But we have got full redundancy terms and a good regeneration deal. A few months ago there would have been no redundancy and not much by way of

regeneration."

Updated: 15:25 Tuesday, July 16, 2002