15 Feb 2011 11:02:09
Govt carbon plans 'may damage manufacturing industry'
Members of the manufacturing industry have called on the government to reconsider its proposal to implement a carbon price.
EEF, which represents British manufacturing, was responding to a consultation launched by the Treasury when it said such a move could damage the industry's competitiveness.
"Industry accepts that addressing climate change comes with a price tag but we are rapidly reaching a tipping point where companies who are internationally mobile will say enough is enough," the organisation said.
It added if more costs continue to build up, the sector, which already must comply with a number of emissions reduction initiatives, will struggle to attract future investment.
Ian Rodgers, director of UK Steel, was quoted by the Financial Times as saying although the energy intensive steel industry "shares the government's objectives", it must carry out a "fundamental rethink" of its plans if it intends the costs to be manageable.
Manufacturing is currently responsible for 55 percent of UK exports, which EEF claim make it essential for future economic growth.