Speeches and Articles: 29/03/2011
Carbon floor pricing
Brian Gibbons: In view of time constraints, could we have a written statement on the details of the meeting between the First Minister and Karl-Ulrich Köhler, the European head of Tata Steel, particularly in relation to how the Assembly Government will work with the steel industry in Wales in light of the carbon floor payments that were announced in the UK Government budget?
That carbon floor will add hundreds of millions of pounds to the cost of producing steel in Wales and the implications for the industry are alarming. Mr Köhler has said that, whatever business benefits occurred in last year’s UK budget statement, they will be dwarfed by the introduction of carbon floor payments, which potentially represent a severe blow to the sustainability of the Welsh steel industry.
This will send a shiver of alarm down the backs of all of us who are concerned about manufacturing in Wales. It does not even take into account the implications of phase 3 of the European Union emissions trading system, which is also due to come into force in a few years’ time.
Therefore, any of us who are concerned about manufacturing in Wales need to make urgent representations about the implications of this carbon levy for our industry, because tens of thousands of jobs are dependent on that industry in Wales. If that proposal is not urgently mitigated, I dread to think what the implications will be for the future economic wellbeing of our country.