HC Deb 25 May 2004 vol 421 cc1498-9W
Ann Winterton

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the proposed abolition of the product mix output algorithms in 2008; and what assessment she has made of the effects on the future competitiveness of UK salt manufacturers. [172942]

Mr. Morley

The Climate Change Agreements are agreements with energy intensive industry through which participants pay a reduced rate of climate change levy in return for meeting challenging energy efficiency targets between 2002 and 2010. The agreements provide for an adjustment to the targets up to 2006 to take account of changes in product mix and output which can increase the energy used per unit of output. The concession lasts only until 2006 because we enter into the Kyoto period in 2008, the date of the next target assessment. The Government must deliver on their commitment to make absolute reductions on CO2, emissions in the Kyoto period, and there must be increased certainty of the contribution to be made from each of the UK's Climate Change Programme policies. Parties to Climate Change Agreements should take the energy use implications of changes in products, and how this will affect their ability to meet their targets, into account when making commercial decisions. The UK Emissions Trading Scheme is available for companies to buy allowances to meet their targets if they wish to produce more energy intensive products. There has been no assessment of the effects on UK salt manufacturers.

Ann Winterton

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the publication of the National Allocation Plan in respect of the European Union Emissions Trading Scheme; and what assessment she has made of its effects on the future competitiveness of UK salt manufacturers. [172943]

Mr. Morley

The UK submitted its National Allocation Plan (NAP) to the European Commission on 30 April and published it for public consultation on 6 May 2004.

There are two salt manufactures listed in the UK NAP and they are covered by the EU Emissions Trading Scheme as a result of the combustion facilities on site. Both are classified in the Food and Drink sector, and one is a member of the Chemicals Industry Association.

The UK NAP acknowledges industry concerns about competitiveness and bases allocations on projected need for sectors open to international competition, including the Food and Drink and Chemicals sectors. Government have involved industry in every stage of the implementation process and have taken concerns over competitiveness on board.