THE Energy Secretary yesterday said he is in talks with Northumberland’s biggest employer over controversial hikes in green taxes.
Chris Huhne promised a package was being developed to help the energy intensive sector, with the Alcan plant at Lynemouth facing additional costs running into tens of millions of pounds as a result of recent changes in legislation.
The news comes after The Journal revealed plant owners Rio Tinto Alcan plan to initiate a review of its future. The site, where 650 workers are based, could be sold, or its power station converted to use wood rather than coal.
Mr Huhne was challenged over the plant’s future by Wansbeck MP Ian Lavery in the Commons yesterday.
Mr Lavery said: “The environmental legislation compliance will place a huge burden on companies like Rio Tinto Alcan in my constituency.
“It will wipe out profits of in excess of £50m from 2013. It could jeopardise 650 jobs. What measures is the Government putting in place to protect jobs in those types of industry?”
The Energy Secretary said the Labour MP was “absolutely right” to raise the issue, saying: “It is crucial we that bring forward proper measures for dealing with energy intensive industries.”
The Liberal Democrat cabinet minister added: “We in fact have been having contact with Rio Tinto Alcan on exactly these issues along with many other energy intensive industries.
“And we are committed, as I announced earlier in this week, to work jointly with the Dept of Business to bring forward a package of measures to ensure that energy intensive industries have a thriving future in this country.”
Measures could include conversion to biomass and free allocations under an emissions trading scheme, said Mr Huhne.
Speaking later, Mr Lavery said the issue was very important to hundreds of staff and hundreds more people, whose livelihoods were tied into the future of the plant.
The Labour MP said he was hoping to meet with the minister soon to discuss the situation further. The Government was also challenged by North Labour MPs about its plans to support green industries during questions to the Energy Department in the Commons.
Newcastle Central’s Chi Onwurah accused ministers of allowing “corrosive” uncertainty over the future of carbon capture and storage (CCS) schemes. Rio Tinto Alcan is no longer planning for such a scheme at Lynemouth.
Energy Minister Charles Hendry insisted work was moving ahead with £1bn more cash available for CCS and a “roadmap” being published this autumn.
Hartlepool MP Iain Wright demanded to know why the UK had slipped from third to 13th in terms of investment in green industry in the world.
Energy Minister Greg Barker said it was difficult to shake off 13 years of Labour Government.
“That does mean there will be a slight hiatus while we change course,” said Mr Barker. But I can tell you that when we have changed course, and our new measures are in place we will be primed for success and turnaround the miserable failure of Labour years.”
