Energy crisis: urgent action needed
10 July 2006
Amicus union and the Energy Intensive
Users Group (EIUG) will hold a joint reception in the
House of Commons on Monday to urge MPs to support action to offset
the rising cost of energy and ease the burden on energy
intensive users.
While the Government's Energy Review is a welcome step in the
right direction. Its recommendations will address the UK's medium
and long-term energy needs. Amicus and the EIUG want the
Government to act to support UK manufacturing in the short
term.
Amicus National Officer, Dougie Rooney said: “Energy
costs are crippling British industry. Unless urgent action is
taken we will see more and more intensive energy users announcing
job cuts and even closing down all together. We welcome the
Government's Energy Review which is aimed at tackling the UK's
medium and long term energy needs. However British industry is
suffering now and we need some short term solutions"
One of Britain's most fragile economies was dealt a serious
blow last week, with the loss of 800 jobs in the historic China
Clay industry in Cornwall. Imerys, claims that the trebling of
energy prices over the last two years led to the decision to halve
its workforce. The company also claims that currently there
are no expectations that the situation will improve.
Amicus is calling on the Government to take the following
action before the coming winter:
- Either suspend or defer the climate change levy for intensive
energy users as the German Government has done.
- The Government must ensure that the UK enjoys equitable terms
with respect to European industry.
- Improve the use of gas import infrastructure to ensure existing
capacity is fully utilised
- Improve the use of gas storage ensuring storage is priced at a
cost reflective level
- Improve access to market information
A survey published by the Engineering Employers Federation at the
end of last year revealed that 93% of companies surveyed had
experienced an increase in energy prices over the last 12 months
with average weighted increases in gas and electricity of 47% and
34% respectively. These rates are more than double the level of
increases reported in 2004.
ENDS
Contact: Ciaran Naidoo 07768 931 315
Notes to editors: The joint reception will take place at 3pm ,
Monday 10 July 2006, Attlee Suite, Portcullis House
