CIA calls for UK energy policy that enables growth

17 November 2011 13:32  [Source: ICIS news]

LONDON (ICIS)--The Chemical Industries Association (CIA) on Thursday called for the UK government to make sure the country has an energy policy that enables manufacturing industry growth.

In a speech to MPs and senior industry executives in London, CIA CEO Steve Elliott asked chancellor George Osborne to set out a package in his autumn statement for growth of the domestic chemical industry and to secure future investment in the UK.

“Our latest survey shows energy is the most immediate concern for chemical business leaders," Elliott said.

“With business performance expected to be the same or worse than last year, the threat of continually changing energy policy is damaging to the prospects of investment in our country. UK factories have significantly higher energy costs than our competitors in Europe, this is not sustainable. Creating a green policy framework is essential, but we have to do it better than we are if we are to ensure sustainable growth and employment,” he added.

The CEO said the UK has damaged itself by offering huge subsidies to expensive and unreliable renewable energy schemes, paid for by consumers, which will end in the UK industry facing doubling in energy costs by 2020.

"Where is the incentive in this for industry to remain in the UK and invest in green jobs and green solutions?" Elliott said.

"We are the nation’s number one manufacturing exporter ... We are a sector the government cannot afford to put out of business through policies that make our sector unable to compete globally,” he added.

By: Franco Capaldo
+44 (0)20 8652 3214

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