MEPs from the North East have clashed over whether hundreds of jobs in the region have been put at risk by “over-zealous environmentalists”.
Euro MP Martin Callanan has hit out at the tight European Union carbon emission laws which he says have threatened 750 jobs at Alcan’s plant in Lynemouth, Northumberland.
The North East Conservative MEP said Alcan was having to spend more time meeting green targets and less time building up its business as EU laws continue to “strangle” one of the county’s biggest employers.
But one of his opponents in the EU last night said Alcan’s parent company’s refusal to offer long-term guarantees for the site’s future was the reason why the Government has not been able to offer more help.
Owners Rio Tinto are trying to sell the smelter, but have acknowledged it may close if a sale is unsuccessful.
Alcan bosses say that unless the power station goes greener and tackles the problem caused by a Government tax on carbon emissions it will cease to be economically sustainable.
Speaking before the European Parliament in Strasbourg, Tory Group leader Mr Callanan said: “The Emissions Trading Scheme and Large Combustion Plants Directives have caused Alcan to face serious competitiveness problems. Closure of the plant will mean the direct loss of around 750 jobs and many more indirectly.
“I and many others warned about the knock-on effects of ill-thought out legislation such as this, but our concerns were brushed aside by over-zealous environmentalists whose fixation on reducing carbon emissions made them deaf to all arguments about the economic and environmental damage they were wreaking.”
He added: “I wonder how many more of my constituents will have to suffer the pain of unemployment before the EU wakes up and realises that parts of its legislation is causing the slow but steady death of European business?”
But the region’s Liberal Democrat MEP Fiona Hall said that blaming EU laws “shows a simple ignorance about global business and how it works”.
Ms Hall told The Journal that bosses at Alcan’s parent company have made it difficult for the Government to offer support.
She said: “The decision to divest the aluminium business stems from the global review which Rio Tinto has been working on for the past year.
“That ongoing review has made it difficult for the UK arm of the aluminium business to negotiate effectively with the Government over the future of the plants and efforts to reduce the carbon footprint.
“However, we should be spending our time now on making sure the divestment is beneficial to Northumberland and the North East rather than trying to make political capital when people’s jobs are at stake.”
Alcan did not wish to comment on the claims.
