He was speaking as a “rapid reaction team”, set up to fight back following the bombshell announcement last week, held its first meeting.

Mr Stephen, who is also Enterprise Minister, chaired the meeting and also held talks with local MPs, MSPs and councillors.

He insisted the Executive had a good track record of helping redundant workers back into training or employment, but admitted they have a hard task ahead given the overall labour market in Dundee.

The Minister said, “In Scotland, employment levels are high and in these other situations over 90% of the workers had alternative jobs, or were in training or had set up businesses within a year.

“Whether it is employment, whether it is seed-corn funding for setting up your own business, or a business with your colleagues, whether it’s retraining, we’ve got to investigate all of the opportunities and make sure advice is available today on-site, supported by the company.”

The Liberal Democrat said the Executive and the unions will have to work closely with the company to help secure the future for those made redundant.

“These things have always happened. Some companies in these situations are difficult to work with. I believe we have got to work very hard with NCR.

“NCR after all are going to continue employing around 700 people in Dundee, 600 in research and development and 100 in manufacturing.”

At the City Chambers today, officials and elected representatives, including the Lord Provost, council chief executive Alex Stephen, Dundee West MP Jim McGovern and MSP Kate Maclean, met the Deputy First Minister to discuss the situation.

It was agreed the Reverend Erik Cramb would head the task force. He recently retired from his post of industrial chaplain to the city. It’s expected an action plan will be put together by the end of the month.

“It was a very constructive meeting, and the council has agreed to play the lead co-ordinating role with the rapid reaction team in terms of reporting back to elected representatives here,” said Mr Stephen.

“I am chairing the first meeting, but we have agreed that future meetings will be chaired by Erik Cramb.

“I would think that within the next two weeks, there will be a whole series of actions and targets prepared by the officials on the rapid reaction team.”

Agencies represented on the task force include Scottish Enterprise Tayside, Scottish Development International, The Scottish Executive and Job Centre Plus.

Continued Mr Stephen, “Millions of pounds will be available. One of the first things the rapid reaction team will do is look at the funding.”

The Minister also defended the decision to give the company a £2 million Government grant in the late 1990s.

He said, “Scotland has to remain competitive and I want to see those NCR jobs stay and expand in Dundee, even though this is a very difficult time.”

Mr Stephen insisted Scotland remains an attractive place for companies looking to carry out research and development.

However, he said Scotland will not be able to compete with low cost, high volume locations, such as China and India, for manufacturing jobs in future.

Speculation over the future of the US firm’s operation in Dundee was ended last week when employees were told it was switching work abroad.

The firm blamed the “changing market environment” and competitive pressures, with ATM production continuing at its plant in Budapest, opened just over a year ago, and at factories in Beijing and India.

Council chiefs suggested the knock-on effect on suppliers and other businesses could result in the loss of up to 1000 jobs.

A Scottish Executive spokesman said Mr Stephen was keen to get the task force up and running as quickly as possible.

“The fact he is visiting Dundee today hopefully sends a signal of the seriousness and intent to help match these people’s skills with work or training opportunities,” he added.