20 JANUARY 2014www.theinformationdaily.com
High energy costs seems to damage Aluminium industry says David Mowat MP
Edited by : AL CIRCLE
2 min read
High energy costs in energy-intensive sectors are detrimental to manufacturing industries like aluminium says David Mowat MP in an exclusive video interview.
Speaking exclusively to the Information Daily, David Mowat MP, Chair of the All-Party Parliamentary Group for the UK Aluminium Industry, said that high energy costs made the aluminium industry “uncompetitive”.
In comparison to countries like America, the European and especially UK industries are at significant cost disadvantages.
Energy prices within America have dropped by about 70 per cent in the last year, causing a loss of business in the UK.
Ahead of a meeting with the Minister of State for Energy in the Department of Energy and Climate Change, Michael Fallon MP, Mowat said: “What we are trying to do is make sure that it is clearly on his agenda that industries like aluminium are under an awful lot pressure, in terms of cost with energy prices.
“The trend is getting worse”, he added.
Currently there are 900,000 jobs in what are termed “energy-intensive” industries, including areas such as chemicals, metals, steel and ceramics.
“That’s an awful lot of jobs and an awful lot of others that rely on those primary jobs.
“We need to be growing those sectors, not allowing high energy prices to compete them out of existence”, Mowat commented.
Asked how the government could assist, Mowat called for Fallon to “recognise the scope of the problem”, starting with the amount of green taxes the country pays.
“I would like to see us ensure a commitment from government that competitive energy prices are a corner stone of a kind of industrial policy. The extent to which we pretend it isn’t so is just factious.
In the end the market will determine whether those 900,000 will increase or decrease”, Mowat said.
He conceded that Fallon is “under constraints” in regards to current legislation, but believes the UK should not have to act unilaterally on high energy processes as legislation currently demands.
“We need to be cognizant of the impact on real jobs and real communities”, he concluded.
Key members of the Aluminium Federation and European Aluminium Association were also in attendance at the meeting with Fallon.
Speaking exclusively to the Information Daily, David Mowat MP, Chair of the All-Party Parliamentary Group for the UK Aluminium Industry, said that high energy costs made the aluminium industry “uncompetitive”.
In comparison to countries like America, the European and especially UK industries are at significant cost disadvantages.
Energy prices within America have dropped by about 70 per cent in the last year, causing a loss of business in the UK.
Ahead of a meeting with the Minister of State for Energy in the Department of Energy and Climate Change, Michael Fallon MP, Mowat said: “What we are trying to do is make sure that it is clearly on his agenda that industries like aluminium are under an awful lot pressure, in terms of cost with energy prices.
“The trend is getting worse”, he added.
Currently there are 900,000 jobs in what are termed “energy-intensive” industries, including areas such as chemicals, metals, steel and ceramics.
“That’s an awful lot of jobs and an awful lot of others that rely on those primary jobs.
“We need to be growing those sectors, not allowing high energy prices to compete them out of existence”, Mowat commented.
Asked how the government could assist, Mowat called for Fallon to “recognise the scope of the problem”, starting with the amount of green taxes the country pays.
“I would like to see us ensure a commitment from government that competitive energy prices are a corner stone of a kind of industrial policy. The extent to which we pretend it isn’t so is just factious.
In the end the market will determine whether those 900,000 will increase or decrease”, Mowat said.
He conceded that Fallon is “under constraints” in regards to current legislation, but believes the UK should not have to act unilaterally on high energy processes as legislation currently demands.
“We need to be cognizant of the impact on real jobs and real communities”, he concluded.
Key members of the Aluminium Federation and European Aluminium Association were also in attendance at the meeting with Fallon.
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