Press Release: 29/03/2011
Concern over carbon floor pricing
In the National Assembly today Aberavon AM Dr Brian raised concerns about the implications of the UK Governments proposals for Carbon Floor Pricing on steel making in Port Talbot and in Wales.
Dr Gibbons said; “I am extremely worried about how the UK Governments Carbon Floor tax will effect steel making in Wales and in particular in Port Talbot. Unless major changes are made to the UK government proposals, they will add hundred of millions of pounds to UK steel making costs.
"Last week Tata indicated that the proposals for carbon floor pricing will dwarf any of the benefits last week’s budget and make UK steel making less and less competitive.
“I greatly welcome Carwyn Jones meeting with Tata last week and I am sure he will be making representations to the UK Government and the European Union about the importance that steel making in Wales and the damage that would be done if we were to make the industry uncompetitive.
“Tata have invested heavily in improving its environmental performance in Port Talbot and for that they should be applauded. In the last few years air quality in Port Talbot has improved. As technology advances I am sure that the environmental as well as production performance will continue to get better at the plant and in UK steel making in general.
“If there is demand for the product then steel will be made somewhere. Driving production overseas to countries where air quality standards are lower, where plants are less likely to be as up to date as the one in Port Talbot significantly increases the likelihood of more environmental damage being done. This will not tackle global warming, indeed it has the potential to make it worse.
“These proposals need urgent review to protect jobs and prevent their devastating impact on the Welsh economy”.