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Tata Steel boss warns of Budget 'severe blow'
by Mike Hughes, Evening Gazette
Mar 24 2011
1Share TATA Steel has warned that a key part of the Budget was “potentially damaging” and a “severe blow” to steelmaking on Teesside.
Karl-Ulrich Köhler, MD and CEO of Tata Steel’s European operations said: “Overall we support the aims of this Budget and its emphasis on stimulating growth in the business sector, particularly in manufacturing, where we have been working with the Government on ways to generate growth.
“We are pleased to see the creation of 40,000 new apprenticeships. We need technically skilled people if we are to create well paid manufacturing jobs in the future.
“However, the benefits are likely to be dwarfed by the introduction of the Carbon Floor Price, which represents a potentially severe blow to the sustainability of UK steelmaking.
“European steelmakers already face the prospect of deteriorating international competitiveness because of the proposed unilateral imposition by the European Commission of very significantly higher emission costs under Phase 3 of the EU Emissions Trading System. The CFP proposal will impose additional unilateral emission costs specifically on the UK steel industry by seeking to artificially ensure that these costs cannot fall below Government-set targets which no other European country will enforce. This is an exceptionally unhelpful and potentially damaging measure.”
His view has been backed by the Chemical Industries Association. Chief executive Steve Elliott said: “For a large number of companies the costs of energy policies will remain a significant barrier to investing in Britain and competing globally”.
Mr Kohler added: “We are disappointed not to see greater emphasis on ensuring that future investment in energy infrastructure - paid for by British electricity consumers - will be carried out and supplied by UK-based companies. This is vital if we are to rebuild the UK’s steel-intensive manufacturing supply chains.
However Mr Köhler said there were strong plus points.
“The increased support for technical innovation and R&D is welcome, as is the additional £200 million to be spent on regional transport investment,” he said.
“It is also good news that the Tees Valley is to be among the first of the Government’s newly created Enterprise Zones, as Tata Steel will remain a major employer in that region after the completion of the sale of our Teesside Cast Products plant.
by Mike Hughes, Evening Gazette
Mar 24 2011
1Share TATA Steel has warned that a key part of the Budget was “potentially damaging” and a “severe blow” to steelmaking on Teesside.
Karl-Ulrich Köhler, MD and CEO of Tata Steel’s European operations said: “Overall we support the aims of this Budget and its emphasis on stimulating growth in the business sector, particularly in manufacturing, where we have been working with the Government on ways to generate growth.
“We are pleased to see the creation of 40,000 new apprenticeships. We need technically skilled people if we are to create well paid manufacturing jobs in the future.
“However, the benefits are likely to be dwarfed by the introduction of the Carbon Floor Price, which represents a potentially severe blow to the sustainability of UK steelmaking.
“European steelmakers already face the prospect of deteriorating international competitiveness because of the proposed unilateral imposition by the European Commission of very significantly higher emission costs under Phase 3 of the EU Emissions Trading System. The CFP proposal will impose additional unilateral emission costs specifically on the UK steel industry by seeking to artificially ensure that these costs cannot fall below Government-set targets which no other European country will enforce. This is an exceptionally unhelpful and potentially damaging measure.”
His view has been backed by the Chemical Industries Association. Chief executive Steve Elliott said: “For a large number of companies the costs of energy policies will remain a significant barrier to investing in Britain and competing globally”.
Mr Kohler added: “We are disappointed not to see greater emphasis on ensuring that future investment in energy infrastructure - paid for by British electricity consumers - will be carried out and supplied by UK-based companies. This is vital if we are to rebuild the UK’s steel-intensive manufacturing supply chains.
However Mr Köhler said there were strong plus points.
“The increased support for technical innovation and R&D is welcome, as is the additional £200 million to be spent on regional transport investment,” he said.
“It is also good news that the Tees Valley is to be among the first of the Government’s newly created Enterprise Zones, as Tata Steel will remain a major employer in that region after the completion of the sale of our Teesside Cast Products plant.