§ 10. Mr. Christopher Gill (Ludlow)What assessment he has made of the effect of climate change levy upon the competitive position of aluminium converters. [120514]
§ The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell)The effect of the climate change levy on companies engaged in aluminium conversion—rolling and extrusion—will depend on whether they benefit from the various levy exemptions, whether they take advantage of the proposed new scheme of capital allowances for energy-efficient investments, and the extent to which they may qualify for a discount from the levy.
§ Mr. GillWe all know that the Government have difficulty with simple arithmetic, but does the Minister understand that if the Lawson Mardon Star Company—an aluminium converter and roller in my constituency, which 1005 employs 600 people—is obliged to pay somewhere in the region of £600,000 or £700,000 per annum, while expecting to receive only £10,000 in employers national insurance rebate, the cost to that company will be of the order of £1,000 per employee? Does she realise that that poll tax on workers in manufacturing industry, coming on top of all the other cost burdens imposed by the Government in the past three years, will be the straw that breaks the proverbial camel's back—or is she content to see British workers' jobs exported to countries where environmental protection is nothing more than a sick joke?
§ Mrs. LiddellI welcome that speech—I thought that I was going to get a question. The hon. Gentleman is clearly not prepared to take into account the environmental obligations on every country and every company. The climate change levy is a key element in tackling climate change. A draft national programme was published on 9 March. The Aluminium Federation has been involved in discussions with the Government about the levy. We have just come to the end of a three-year programme on competitiveness in the aluminium industry that was partly funded by the DTI. We have continued to work with the industry, particularly on issues of sustainable development. For companies throughout the world, climate change issues will not go away. That is why my right hon. Friend the Chancellor has revised his plans for the climate change levy, putting in place capital allowances to assist industry to become much more energy-efficient. Unlike the Conservatives, we are not prepared to bury our heads in the sand on climate change issues.
§ Mr. Richard Page (South-West Hertfordshire)Does the Minister accept that the perfectly reasonable question asked by my hon. Friend the Member for Ludlow (Mr. Gill) expresses the concerns felt not just by the aluminium industry but by the whole of industry on the climate change tax? Is she aware that industry feels that the DTI has abandoned its sponsorship role, particularly on sustainability? I have one direct question for her. As the various agreements that have been reached require permission from the European Union, because they will be regarded as state aid, will she give a guarantee that the levy will not be introduced until the Commission has granted permission? If not, it will cause hundreds and thousands of job losses.
§ Mrs. LiddellAgain, the Conservatives have underlined their complete opposition to taking any action to ensure that this country has a sustainable economic future. The hon. Gentleman should take into account that, throughout the Organisation for Economic Co-operation and Development countries, there is a need to tackle climate change issues. British industry has an opportunity to gain a competitive advantage on that. The Government have consulted widely on climate change issues. My right hon. Friend the Chancellor has been involved in discussions with industry, and the DTI has acted as a sponsor for the aluminium industry and the entire industrial sector. My right hon. Friend will reveal the outcome of his consultation in due course.